1. What is BC Real Estate Commission?

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

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• \( \text{Sale Price} \) — Final selling price of the property in CAD
• \( \text{Commission Rate} \) — Agreed percentage rate between agent and client

3. Typical Commission Rates in BC

Current Rates: In British Columbia, the typical total commission rate ranges from 5% to 7% on the first $100,000 and 2.5% to 3% on the remaining balance, though rates are negotiable.

4. Using This Calculator

Instructions: Enter the property sale price in Canadian dollars and the commission rate percentage. The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Are real estate commissions negotiable in BC?
A: Yes, commission rates are always negotiable between the client and 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: How is the commission split between agents?
A: The total commission is usually split 50/50 between the listing and buying brokerage, with each agent then receiving a portion of their brokerage's share.

Q4: Are commissions subject to taxes?
A: Yes, GST applies to real estate commissions in BC.

Q5: What's the average commission on a $1 million home?
A: At a typical 7% on first $100K + 2.5% on balance, the commission would be approximately $31,000.