1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents for their services in facilitating the sale of a property. In British Columbia, this is typically a percentage of the final sale price.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• \( Sale\ Price \) — Final selling price of the property in CAD
• \( Average\ Rate \) — Agreed commission percentage (typically 3-5% in BC)

Note: Commission rates are negotiable and may vary based on the property type, location, and market conditions.

3. Typical Commission Rates in BC

Details: In British Columbia, the average total commission rate is typically between 3% to 5% of the sale price, usually split between the buyer's and seller's agents.

4. Using the Calculator

Tips: Enter the property sale price in Canadian dollars and the agreed commission rate (percentage). The calculator will estimate the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates fixed in BC?
A: No, commission rates are negotiable between the seller and their real estate agent.

Q2: Who pays the real estate commission?
A: Typically the seller pays the commission, which is then split between the listing and buying agents.

Q3: Are there alternatives to percentage-based commissions?
A: Some agents offer flat-fee services or tiered commission structures, especially for higher-value properties.

Q4: Is GST included in the commission?
A: GST (5%) is typically added to the commission amount in BC.

Q5: How is the commission split between agents?
A: The total commission is typically split 50/50 between the listing and buying agents, though this can vary.