1. What is Realtor Commission?

Realtor commission is the fee paid to real estate agents for their services in buying or selling a property. In British Columbia, commissions are typically calculated as a percentage of the final sale price and are negotiable between the client and the realtor.

2. How Commission is Calculated in BC

The basic commission formula is:

In BC, the standard practice is:

• 7% on the first $100,000 of the sale price
• 2.5-3% on the remaining balance above $100,000

3. Standard BC Commission Structure

Example Calculation: For a $500,000 home:

• First $100,000 at 7% = $7,000
• Remaining $400,000 at 2.5% = $10,000
• Total Commission = $17,000

Note that commissions are typically split between the buyer's and seller's agents, and may include GST.

4. Using the Calculator

Instructions: Enter the sale price in CAD and the commission rate percentage. The calculator will show both the standard BC commission and your custom rate calculation.

5. Frequently Asked Questions (FAQ)

Q1: Are realtor commissions negotiable in BC?
A: Yes, commission rates are always negotiable between the client and realtor.

Q2: Who pays the realtor commission?
A: Typically the seller pays the commission, which is then split between the buyer's and seller's agents.

Q3: Is GST included in the commission?
A: No, GST (5%) is typically added to the commission amount.

Q4: What's the average commission rate in BC?
A: While rates vary, the standard is approximately 7% on first $100k and 2.5-3% on the balance.

Q5: Are there flat-fee alternatives?
A: Yes, some realtors offer flat-fee services, particularly for less expensive properties.