1. What is Real Estate Commission?

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

2. How Commission is Calculated

The basic commission formula is:

Where:

• Sale Price — Final selling price of the property in Canadian dollars
• Commission Rate — Agreed percentage between seller and agent (typically 3-7%)

Note: The total commission is often split between the listing agent and buyer's agent, with each typically receiving 2.5-3% in BC.

3. Typical Commission Rates in BC

Details: In British Columbia, standard commission rates range from 3% to 7% of the sale price, with most transactions falling between 4-5%. Rates may vary based on property type, location, and market conditions.

4. Using the Calculator

Tips: Enter the property sale price in CAD and the agreed commission rate percentage. The calculator will show the total commission amount payable.

5. Frequently Asked Questions (FAQ)

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

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

Q3: Is GST/HST added to real estate commissions?
A: Yes, in BC you must add 5% GST to the commission amount.

Q4: Do higher-priced homes pay the same percentage?
A: Sometimes agents use a sliding scale where the percentage decreases as the price increases.

Q5: What's the average commission in Vancouver?
A: In Vancouver, the typical total commission is around 3.5-5% split between listing and buying agents.