1% and 2% Commissions Explained

See how discount brokerages compare to full-service agents — what’s included, what’s missing, and how to decide which model fits you best.

Choosing between a discount real estate brokerage and a traditional full-service agent is about more than commission rates. At first glance, paying a 1% or 2% listing fee seems like a simple way to save thousands. However, when you look closer at what’s included — and what’s not — the savings may not be as significant as they appear.

A key question to consider is whether a brokerage charging a reduced commission can still deliver the same marketing reach, buyer exposure, and negotiation strength as a traditional brokerage. Lower fees can sometimes mean fewer included services, limited advertising, or less hands-on time from your listing agent.

Buyer-Agent Compensation

Even if you pay only 1% or 2% to your listing brokerage, most buyers in British Columbia are represented by agents who expect compensation for their work. To ensure your home gets full exposure, you’ll still need to offer a competitive buyer-agent commission — usually around 1.25% to 2%. This means your overall savings are often smaller than the initial discount suggests.

Included Services and Marketing

Before you list, it’s important to review exactly what’s included in the fee. Many discount brokerages in BC use a menu-style or “a-la-carte” approach, where professional photos, signage, open houses, and MLS exposure may cost extra. A traditional brokerage usually includes these services as part of their full commission, ensuring your home is presented as professionally as possible. Once you factor in the add-ons, the difference in total cost often narrows.

Service Quality and Negotiation Power

Commission structure can also affect how much time and attention your listing receives. Full-service agents, earning a standard commission, typically manage fewer listings at once and can devote more effort to pricing strategy, buyer follow-up, and negotiation. Discount agents working at lower fees may need to take on more clients, potentially limiting how much personal attention each listing receives.

Making the Right Choice

A 1% or 2% real estate brokerage can be a good fit if you’re comfortable managing parts of the process yourself, or if your home is straightforward to market. But if you value full exposure, strong negotiation, and detailed transaction management, a traditional brokerage often provides greater overall value — even after accounting for the higher commission rate.

Disclaimer: This information applies to brokerage and commission practices in British Columbia and is likely similar in other Canadian provinces, although market conditions and regulations may vary.