First-time home buyers meeting with a realtor to discuss market data, commissions, and negotiation strategies in Salmon Arm

First-Time Home Buyer Series – Step 3: Do You Really Need a Realtor? (Spoiler: Probably Yes.)

By Leanne Mollica, Mortgage Broker – My Mortgage Strategy, Salmon Arm BC

Buying your first home is exciting — but it’s also a legally binding, financially life-changing transaction. Unless you have nerves of steel and a background in negotiation, contracts, and real estate law, you’ll want a professional in your corner.

Let’s break down why most first-time buyers benefit from working with a strong realtor — and how to choose one wisely.

First: Let’s Talk About Commission (Because Everyone Wants to Know)

There’s a popular saying in B.C. real estate:

“7% on the first $100,000 and 2.5% on the rest.”

Yes — that’s a common structure.
No — it is not the rule.

Commission rates in B.C. are:

  • Not fixed
  • Not set by law
  • Not identical across markets

In major urban centres, you’ll often see the tiered 7% + 2.5% model, split between buyer and seller agents.

But here in the Shuswap (and in many small or rural markets), you may see:

  • Flat fee structures
  • Lower percentage rates
  • More negotiation
  • Different splits on higher-priced homes

👉 On a $700,000 home, the typical formula means each agent could earn around $11,000 — so choosing your realtor carefully is not just smart… it’s financial self-defense.

Bottom line:
There’s no universal commission rule. Just make sure your agent is transparent about their fees and very clear about the value they bring.

Not All Realtors Are Created Equal

Some realtors are seasoned experts:

✔ Immersed in data
✔ Skilled negotiators
✔ Excellent communicators
✔ Protective of your best interests

Others?
Well… they treat real estate like a casual side hustle and may not have the experience needed to protect your largest investment.

And yes — you should be picky.

This is not the time for a “my friend just got licensed!” favour.

Pro Tip: Treat the First Meeting Like a Job Interview

Ask your potential realtor:

  • How many homes have you sold in the past year?
  • What areas do you specialize in?
  • How do you prepare clients for negotiations?
  • What’s your average sale-to-list ratio?
  • How do you spot red flags in a property?
  • What’s your communication style?

If they can’t answer confidently — that’s a red flag.

“Can I Just DIY This?”

Technically — yes.
You can buy privately or through platforms that eliminate agents.

But here’s the truth:

  • How a home is sold does not change its value
  • You risk overpaying
  • You risk missing critical defects
  • You risk legal mistakes
  • You risk losing negotiating power

And in a private sale, those risks are entirely on you.

A realtor doesn’t just help you find homes — they help you avoid expensive mistakes.

What a Great Realtor Brings to the Table

1. Local Market Knowledge

A strong realtor knows:

  • Pricing trends
  • Neighbourhood differences
  • Competition levels
  • Micro-market quirks unique to the Shuswap

If they’re sending you data, charts, and comps? That’s a good sign.

2. Risk Assessment

Is that fixer-upper a dream project or a money pit?
A good realtor will flag issues before you’re financially committed.

3. Negotiation Skills

Ask to see evidence of their success:

  • Do they typically negotiate below list price?
  • Do their clients win in multiple-offer situations?
  • Are they strong communicators under pressure?

Negotiation can mean tens of thousands saved — or lost.

4. Red Flag Detection

A shiny backsplash and fresh paint don’t guarantee a sound home.
A trained eye can catch warning signs you won’t notice.

How to Find the Right Realtor

With more than 140,000 realtors in Canada, the landscape is crowded. Here’s how to narrow it down:

  • Start with personal referrals
  • Ask friends who bought in the last 1–2 years
  • Look up agents who specialize in your price range or property type
  • Review Google, Facebook, and RateMyAgent reviews
  • Check their online presence and activity
  • And most importantly: Google their name

If they’ve been disciplined by their real estate board… it’ll show up.

You deserve someone reputable, experienced, and aligned with your goals.

Next Up in the Series: House Tours

Staging and cinnamon-scented candles can distract even the sharpest buyers. Step 4 covers how to stay objective and spot flaws like a pro.

If you need help connecting your real estate choices with your mortgage strategy — or you just want someone to run numbers for you — I’m here anytime.

Have Mortgage Questions? I’m Always Here to Help.

📲 250-300-2008
📧 leanne@mymortgagestrategy.ca
🌐 MyMortgageStrategy.ca
📍 Serving Salmon Arm, the Shuswap, the Okanagan & all of BC

Turning Home Ownership Dreams Into Reality

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