1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents for their services in facilitating the sale or purchase of a property. In British Columbia, commissions are typically a percentage of the final sale price and are negotiated between the seller and their agent.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• Sale Price — The final selling price of the property in Canadian dollars
• Commission Rate — The agreed percentage rate (typically between 3-7% in BC)

3. Typical Commission Rates in BC

Details: In British Columbia, the average total commission rate is typically between 5-7% on the first $100,000 and 2-3% on the remaining balance. However, rates are always negotiable and can vary based on:

• Property type and value
• Market conditions
• Agent experience
• Services provided

4. Using the Calculator

Tips: Enter the property sale price in CAD and the commission rate as a percentage (e.g., 5 for 5%). The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Who pays the real estate commission in BC?
A: Typically the seller pays the commission, which is then split between the listing and buying agents according to their agreement.

Q2: Are commission rates fixed in British Columbia?
A: No, commission rates are not fixed and are always negotiable between the client and their real estate agent.

Q3: Can I negotiate commission rates?
A: Yes, commission rates are always negotiable. It's recommended to discuss services provided at different rate levels.

Q4: Does GST apply to real estate commissions?
A: Yes, GST (currently 5%) is added to the commission amount in BC.

Q5: What's included in a typical commission?
A: Services may include marketing, professional photography, open houses, negotiations, paperwork handling, and guidance through the entire process.