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If you’re buying a home in Victoria, BC, do you actually have to pay your REALTOR®, or does the seller cover the commission?
Short answer: in British Columbia, including Victoria, real estate commissions are paid by the seller from the sale proceeds at closing, not directly by the buyer. In a standard MLS transaction, buyers do not write a cheque to their REALTOR®.
Quick snapshot for buyers
Commission structure is one of the most misunderstood parts of real estate. Many buyers worry they need to budget extra for agent fees, when in reality, your buyer’s agent is typically compensated through the seller’s commission, not out of your pocket.
How real estate commissions work in British Columbia
Real estate commissions in BC are fully negotiable and agreed to between the seller and their listing brokerage when the home is listed. There is no government-mandated or “standard” commission rate.
Typical commission structure in Victoria
While every listing is different, a commonly used structure in the Victoria area is:
3 to 3.5 percent on the first $100,000, and
1.5 to 2.5 percent on the balance of the sale price
A frequently seen local example is 3 percent on the first $100,000 and 1.5 percent on the balance, though this can vary based on price point, property type, and marketing strategy.
Example: $800,000 home sale
Using a 3 percent / 1.5 percent structure:
3 percent of the first $100,000 = $3,000
1.5 percent of the remaining $700,000 = $10,500
Total commission: $13,500, paid by the seller at closing.
This amount is deducted from the sale proceeds, not added on top of the price.
How the commission is split between agents
Once the total commission is set, it is typically shared between the two brokerages involved in the transaction.
The co-operating brokerage split
In most MLS-listed sales:
Approximately 50 percent goes to the listing brokerage
Approximately 50 percent goes to the buyer’s brokerage
The buyer’s portion is often referred to as the co-operating or co-op commission and is clearly disclosed in the MLS listing.
Each brokerage then pays its individual agent according to their internal agreement, often after brokerage fees and expenses. Buyers are not involved in this process and it does not change their purchase price.
How commission is paid at closing
The payment flow is straightforward and handled behind the scenes.
The seller’s lawyer or notary deducts the full commission from the sale proceeds
The listing brokerage receives the commission
The listing brokerage pays the buyer’s brokerage their share
Each brokerage pays their respective agent
From a buyer’s perspective, there is no direct payment made to their REALTOR®.
Important Victoria and BC-specific details
There is no standard commission rate
Despite common myths, commission rates in BC are 100 percent negotiable. This aligns with Competition Bureau guidelines and gives sellers flexibility to structure commissions based on their goals.
Buyer representation agreements
In recent years, buyers may be asked to sign a buyer representation agreement. This document outlines services, expectations, and duties, but it does not mean buyers automatically pay their agent directly. In most cases, compensation still flows from the seller unless otherwise negotiated.
Rare situations where buyers may pay directly
While uncommon, buyers might pay a fee in specific scenarios:
Private sales without MLS exposure
Unlisted or off-market properties
Situations where a seller offers zero co-op commission
In these cases, compensation is typically addressed through negotiation, often as a seller concession rather than an out-of-pocket cost.
What this means for Victoria buyers
For buyers, the structure offers real advantages.
You can work with an experienced buyer’s agent without upfront cost
Your REALTOR® supports you through pre-approval guidance, showings, offer strategy, negotiation, and due diligence
Homes offering a competitive co-op commission often attract more buyer-agent attention, which can influence showing activity
A smart question to ask when interviewing agents is:
“What co-op commission do you typically expect sellers to offer in my price range?”
What this means for Victoria sellers
For sellers, commission is one of the largest selling expenses and deserves a clear, upfront conversation.
Commission structure can influence buyer-agent exposure
Pricing, marketing, and commission strategy should work together
The goal is net outcome, not just the headline percentage
Understanding how commissions function allows sellers to make informed decisions that support their overall selling strategy.
Final thoughts
Real estate commissions in Victoria are simpler than they often seem. Sellers pay them, buyers typically do not, and everything is handled transparently at closing.
When buyers understand this structure, they can focus on finding the right home rather than worrying about unexpected fees. When sellers understand it, they can price and market with confidence.
If you’re unsure how commissions apply to your specific situation, or you want to understand how strategy and structure affect your bottom line, a clear, no-pressure conversation can bring immediate clarity.
Matt Peulen
Disclaimer:
This article is provided for general information only and does not constitute legal, financial, or tax advice. Commission structures and real estate practices may change. Always consult licensed professionals regarding your specific circumstances.
