Surrey Realtor Fees Explained: Fixed vs. Percentage Commission Models

 


When you start thinking about selling your home in Surrey, one of the first questions that comes up is about realtor fees Surrey BC. The commission structure isn’t always clear, and it can feel like every agent has a slightly different way of explaining it. Some use a traditional percentage model. Others work with a flat fee, often set around two percent. Both approaches are common, but the differences matter when it comes to what you take home at the end of the sale.

The Traditional 7/3 Split

In Surrey and across much of British Columbia, the most common model has been the 7/3 split. What that usually means is a total of 7% on the first $100,000 of the sale price, plus 3% on the rest. The listing agent and the buyer’s agent then divide that commission between them.

On paper it sounds straightforward. Yet when you apply the numbers to an actual property, the totals can surprise you. Say your home sells for $1,200,000. The first $100,000 is charged at 7%—that’s $7,000. The remaining $1,100,000 is charged at 3%, which equals $33,000. Together, that’s $40,000 in commission, before taxes.

Now, you might not think about the commission when looking at home values because the focus is often on the sale price. But when you compare those numbers against what you could save under a different model, the difference becomes harder to ignore.

The Flat-Rate 2% Model

The flat-rate or low-commission model takes a different path. Instead of a tiered percentage, the fee is set around 2% of the final sale price. Using the same $1,200,000 home, the math looks different. Two percent comes to $24,000. That’s a gap of $16,000 compared to the traditional model.

This isn’t just theory. Sellers across Surrey have experienced the same realization when they see the commission savings side by side. For many families, that money becomes part of a down payment on their next property, covers moving costs, or simply stays in their bank account.

Do Lower Fees Mean Lower Service?

This question comes up often, and it’s fair to ask. If the commission is smaller, does the level of service drop too? In practice, the answer is no. Your home still gets listed on MLS®. It still reaches buyers searching in Surrey, across Metro Vancouver, and beyond. Professional photography, marketing, and open houses don’t vanish.

The difference lies in the business model. Brokerages like 2 Percent Realty West Coast build their approach around volume and transparency. The fee is set lower, but the exposure and advice remain. That way, the seller isn’t paying more than they need to. Some might argue the traditional fee structure motivates agents more, but the reality is that both models depend on getting your home sold.

When a Traditional Model Still Makes Sense

That being said, there are situations where a traditional 7/3 split might still appeal. A seller who has worked with the same agent for years may feel comfortable staying with the standard model. Others may believe that paying a higher commission secures extra attention, even if the services themselves are similar.

It’s not always a matter of right or wrong. The choice depends on your comfort level, your trust in the agent, and how much you value the potential savings.

Why Surrey Sellers Lean Toward 2%

Surrey is a competitive market with a wide mix of property values. Detached homes in South Surrey, condos in Guildford, townhouses in Cloverdale—every segment sees steady demand. With prices where they are, the commission difference adds up fast.

Take a $900,000 townhouse. Under the 7/3 split, you’re looking at around $31,000 in commission. At 2%, it’s $18,000. That $13,000 could easily cover a year of mortgage payments on the next place. The savings aren’t small, and for most sellers they feel meaningful.

Choosing What Works for You

At the end of the day, the commission structure you choose should align with your goals. If you want transparency and a predictable fee, the 2% model makes sense. If you feel more comfortable with the traditional route and don’t mind paying more, that’s your decision too. What matters is knowing your options and doing the math before you sign a listing agreement.

The question isn’t whether one model is always better than the other. It’s whether the commission you pay reflects the value you expect. Once you frame it that way, the decision often becomes easier.

 

Ready to Learn More?

If you’re planning to sell home in Surrey and want a clear explanation of your options, visit 2percentwestcoast.ca. You’ll find details about the 2% model, free home evaluations, and guidance from licensed professionals who know the Surrey market inside and out. Before you commit to the traditional 7/3 split, compare the numbers for yourself. The savings may surprise you.

 

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