1. What is Real Estate Commission?

Real estate commission is the fee paid to realtors for their services in buying or selling property. In British Columbia, this is typically a percentage of the final sale price, shared between the buyer's and seller's agents.

2. How Commission is Calculated

The standard commission calculation is:

Where:

• \( Sale\ Price \) — Final selling price of the property (CAD)
• \( Average\ Rate \) — Commission percentage (typically 3-7% in BC)

Note: The total commission is usually split between listing and buying agents, and may include additional fees.

3. Typical Commission Rates in BC

Details: In British Columbia, the average real estate commission ranges from 3% to 7% of the sale price, with most transactions falling between 5-6%. Rates are negotiable and may vary by region and property type.

4. Using the Calculator

Tips: Enter the property sale price in Canadian dollars and the commission rate as a percentage (e.g., 5 for 5%). 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 realtor. There is no standard fixed rate.

Q2: Who pays the commission in a sale?
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 realtors offer flat-fee or tiered commission structures, especially for higher-value properties.

Q4: Does GST apply to real estate commissions?
A: Yes, GST is typically added to the commission amount in BC.

Q5: Can I negotiate commission rates?
A: Yes, commission rates are always negotiable. It's recommended to discuss and compare rates with multiple realtors.