1. What is BC Real Estate Commission?

The commission in BC real estate transactions is typically calculated as a percentage of the sale price, often using a tiered structure where the first $100,000 has a higher rate (usually 7%) and the balance has a lower rate (typically 2.5-3%).

2. How Does the Calculator Work?

The calculator uses the standard BC commission formula:

Where:

• \( First\ \$100,000 \) — The first $100,000 of the sale price
• \( Rate_1 \) — Commission rate for first $100,000 (typically 7%)
• \( Balance \) — Remaining sale price above $100,000
• \( Rate_2 \) — Commission rate for balance (typically 2.5-3%)

Explanation: The tiered structure means higher-value properties pay a lower average commission rate overall.

3. Understanding Commission Structure

Details: In BC, the total commission is typically split between listing and selling brokerages, and then further divided between brokerages and their agents.

4. Using the Calculator

Tips: Enter the sale price in CAD dollars. Default rates are set to BC standards (7% on first $100K, 2.5% on balance) but can be adjusted for specific agreements.

5. Frequently Asked Questions (FAQ)

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

Q2: Who pays the commission in a sale?
A: Typically the seller pays the commission, which is deducted from the sale proceeds.

Q3: Is GST included in commission?
A: No, GST is additional to the calculated commission amount.

Q4: What's the average total commission in BC?
A: For a $1 million property with standard rates: $7,000 on first $100K + $22,500 on balance = $29,500 total.

Q5: How is commission split between agents?
A: The total commission is typically split 50/50 between listing and selling brokerages, then each brokerage splits with their agent (often 70/30 to agent).