1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents for their services in facilitating the sale or purchase 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 — The final selling price of the property in CAD
• Commission Rate — The agreed percentage rate (typically between 3-7%)

Note: The total commission is often split between the buyer's and seller's agents.

3. Typical Commission Rates in BC

Current Rates: In British Columbia, the typical real estate commission ranges from 3% to 7% of the sale price, with the average being around 5% for residential properties.

4. Using the Calculator

Instructions: Enter the property sale price in Canadian dollars and the commission rate as a percentage (e.g., 5 for 5%). The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates negotiable in BC?
A: Yes, commission rates are always 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: Is GST included in the commission?
A: No, GST of 5% is typically added to the commission amount in BC.

Q4: What's the average commission on a $1 million home?
A: At 5% commission, the fee would be $50,000 before GST.

Q5: Are there flat-fee alternatives?
A: Yes, some brokerages offer flat-fee services, though they may provide fewer services.