How to Negotiate Realtor Commissions in Penticton Without Burning Bridges

Understanding the Balance Between Value and Cost

When it comes to listing your home, one of the first questions that often arises is: “Can I negotiate the commission?” The short answer is yes real estate commissions in British Columbia are fully negotiable. But the more important question is: “How can I do it the right way?”

Negotiating your realtor’s commission isn’t just about saving money it’s about understanding what value you’re trading for that adjustment. When done respectfully and strategically, both the seller and the agent can walk away with a win-win arrangement. But when handled poorly, it can cost you the very thing you’re trying to gain: a top-performing advocate fully committed to your success.

Here’s how to approach commission conversations with professionalism, transparency, and results.

Why Realtor Commissions Are Negotiable — But Not Always Flexible

In Penticton and throughout BC, there are no fixed or standardized commission rates. Realtors are free to set their own fee structures, which means sellers are free to compare and negotiate before choosing representation.

That said, not all commissions are created equal. A small difference in percentage might represent a major difference in service or in how aggressively your property is marketed.

For example, a full-service REALTOR® offering professional photography, drone footage, social media campaigns, and staging consultation might charge 7% on the first $100,000 and 2.5% on the balance. A discount brokerage offering limited marketing may charge less, but the exposure and buyer traffic could suffer.

The key is to focus on value received, not just percentage charged.

Step 1: Do Your Homework

Before entering any negotiation, understand the market context. Ask questions like:

• What is the average commission structure in Penticton right now?

• How many competing listings are in your price range?

• What type of marketing do comparable agents provide?

If your agent can clearly explain why their commission reflects the quality of service, you’re not negotiating blindly you’re making an informed decision.

Professional realtors appreciate knowledgeable clients. The more you understand about the process, the easier it is to find a structure that feels fair for everyone involved.

Step 2: Ask the Right Questions

Rather than jumping straight to “Can you reduce your commission?”, approach the conversation from a collaborative angle. For example:

✅ “Can you walk me through what’s included in your commission?”
✅ “If we agree to a faster timeline or specific price, could we explore a performance-based option?”
✅ “Are there areas where we can optimize the marketing plan to align with my budget?”

These questions invite discussion, not confrontation. And they show that you respect your agent’s time, experience, and investment.

In most cases, an experienced realtor will find creative ways to structure a plan that aligns with your goals — sometimes by adjusting other variables instead of the commission itself.

Step 3: Understand the Cost of Cutting Too Much

While every seller wants to save money, slashing commission too aggressively can backfire. Here’s why:

1. Reduced Marketing Exposure – Professional photography, premium listings, and paid advertising all cost money. Lower commission often means fewer marketing resources.

2. Lower Buyer-Agent Incentives – The buyer’s agent typically receives a portion of the commission. If that portion is reduced, your listing could see less attention in a competitive field.

3. Limited Negotiation Leverage – Agents who are pressured on price may have less motivation to negotiate strongly on your behalf later.

In other words, a small percentage cut could lead to a longer time on market or a lower sale price — which costs more than it saves.

Step 4: Explore Alternatives

Negotiating doesn’t always mean lowering the percentage. It might mean:

• Adjusting payment structure — for example, a slightly higher rate for above-asking performance.

• Offering a tiered commission — such as 5% up to a certain threshold, 7% beyond that.

• Agreeing on a shorter listing term with review flexibility after 30 days.

By reframing the discussion as a strategic partnership, you maintain trust and demonstrate that you value results as much as fairness.

Step 5: Consider the Relationship, Not Just the Rate

The relationship you build with your REALTOR® is one of the most important parts of your selling experience. They’re your advocate, negotiator, and project manager all in one.

When you begin your relationship with mutual respect — rather than starting by reducing their pay — you set a tone of collaboration. That respect often translates into better representation, more effort, and higher-quality outcomes.

In Penticton’s competitive real estate landscape, agents like myself invest heavily in relationships because they lead to smoother transactions, repeat clients, and long-term trust.

How Top REALTORS® Handle Commission Conversations

The best agents won’t shy away from commission discussions — they welcome them. Transparency builds credibility.

A professional REALTOR® will:

• Explain their marketing costs clearly

• Outline what’s included in their service package

• Compare their performance metrics to local averages

• Discuss value-added services (like staging or aerial video)

• Provide testimonials or proof of results

If your agent can demonstrate real-world return on investment, you’ll quickly see why their commission structure makes sense.

The Psychology Behind Negotiation

It’s also worth remembering that negotiation is a two-way street. A REALTOR® who feels respected and valued will often go above and beyond to meet your expectations. That could mean extra showings, more ad exposure, or additional strategy sessions all of which add value without changing the rate.

The secret? Frame your negotiation around partnership, not opposition.

A Penticton Perspective

Every community has its rhythm and in Penticton, relationships matter. Sellers and agents often cross paths at local wineries, farmers’ markets, or events by Okanagan Lake. A healthy negotiation keeps doors open and reputations strong.

If you want to negotiate commission, do it professionally, respectfully, and early ideally before signing a listing agreement. When handled correctly, it strengthens the trust between you and your realtor instead of straining it.

Final Thoughts

Negotiating your realtor’s commission isn’t taboo it’s a smart part of due diligence. But approach it with curiosity, not confrontation. Focus on value, not just numbers.

When you work with an experienced professional like myself and the team at My Property Central Real Estate Group | eXp Realty, you get more than a listing — you get strategy, communication, and accountability from day one.

Your home deserves more than the cheapest option. It deserves the right representation.

Ready to Connect?

If you’re thinking about buying, selling, or joining a forward-thinking real estate team, I’d love to connect.
I’m Riccardo (Rico) Manazza, REALTOR® with eXp Realty | South Okanagan, and part of the My Property Central Real Estate Group helping clients and agents succeed across Penticton, Oliver, Osoyoos, and beyond.

💬 Reach out anytime:
📞 Call or text: 236-457-4230
📧 Email: rico@mypropertycentral.ca
🌐 Website: www.riccardomanazza.realtor
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Let’s Stay Connected

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Disclaimer

This article is for informational purposes only and should not be considered financial or legal advice. Eligibility criteria and program details are subject to change. Always consult with a qualified mortgage professional and licensed REALTOR® for the most current information