1. What is BC Real Estate Commission?

Real estate commission in British Columbia is typically calculated as a percentage of the final sale price of a home. The standard rate structure in BC is 7% on the first $100,000 and 3% on the remaining balance, though rates can be negotiated between the seller and real estate agent.

2. How Commission is Calculated

The basic commission formula is:

For standard BC rates:

• First $100,000: 7% commission
• Remaining amount: 3% commission

Example: For a $500,000 home:

• First $100,000 × 7% = $7,000
• Remaining $400,000 × 3% = $12,000
• Total Commission = $7,000 + $12,000 = $19,000

3. Standard BC Commission Rates

Details: The standard 7% + 3% structure is common but not mandatory. Commission rates are always negotiable between the seller and their real estate agent. The total commission is typically split between the buyer's and seller's agents.

4. Using the Calculator

Tips: Enter the sale price in Canadian dollars and either the custom commission rate or use the standard BC rates. The calculator will show both standard and custom commission amounts for comparison.

5. Frequently Asked Questions (FAQ)

Q1: Is the 7% + 3% rate mandatory in BC?
A: No, 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 buyer's and seller's agents.

Q3: Are there additional fees beyond commission?
A: Yes, there may be additional fees like GST, administrative fees, or other charges depending on the brokerage.

Q4: Can I negotiate a lower commission rate?
A: Yes, commission rates are negotiable. Discount brokerages may offer lower rates with fewer services.

Q5: How is commission split between agents?
A: The total commission is typically split evenly between the buyer's and seller's agents, but this can vary.