1. What is the BC Interior Commission Structure?

The standard commission structure for BC Interior real estate is 7% on the first $100,000 of the sale price and 3% on the remaining balance. This calculator helps estimate the total commission based on this structure or a custom rate.

2. How Does the Calculator Work?

The calculator uses either the standard BC Interior formula or a custom rate:

Calculation Steps:

1. If sale price ≤ $100,000: Commission = Price × 7%
2. If sale price > $100,000: Commission = ($100,000 × 7%) + ((Price - $100,000) × 3%)

3. Importance of Commission Calculation

Details: Accurate commission calculation is essential for real estate professionals to understand their earnings and for sellers to anticipate costs. The tiered structure in BC Interior ensures fair compensation across different price points.

4. Using the Calculator

Tips: Enter the sale price in CAD dollars. Select "BC Interior Standard" for the 7% + 3% structure or choose "Custom Rate" to enter your own percentage. All values must be valid (price > 0, rate between 0-100%).

5. Frequently Asked Questions (FAQ)

Q1: Is the 7% + 3% structure mandatory in BC Interior?
A: No, commission rates are negotiable between the seller and realtor. The 7% + 3% structure is common but not required.

Q2: Are there additional fees beyond commission?
A: Yes, there may be additional fees like GST, administrative fees, or other charges. Consult your realtor for a complete breakdown.

Q3: How is commission split between buying and selling agents?
A: Typically the total commission is split 50/50 between the buying and selling agents, but this can vary.

Q4: Does this calculator account for HST?
A: No, this calculates the base commission amount before taxes. HST would be additional.

Q5: Can I use this for commercial properties?
A: Commercial real estate often has different commission structures. This calculator is designed for residential properties.