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, this is typically a percentage of the final sale price.

2. How Commission is Calculated

The commission is calculated using the simple formula:

Where:

• Sale Price — The final selling price of the property in Canadian dollars
• Commission Rate — The agreed percentage rate between the seller and real estate agent

3. Typical Commission Rates in BC

Details: In British Columbia, real estate commissions typically range between 3% to 7% of the sale price, with the average being around 5%. The exact rate is negotiable between the seller and the real estate agent.

4. Using the Calculator

Tips: Enter the 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 agent and buyer's agent.

Q2: Are commission rates fixed in British Columbia?
A: No, commission rates are negotiable and not set by law. Rates vary between brokerages and individual agents.

Q3: Is GST included in the commission?
A: No, GST (5%) is typically added to the commission amount and paid separately.

Q4: Can commission rates be lower for higher-priced homes?
A: Sometimes agents offer tiered commission structures with lower percentages for higher price brackets.

Q5: What's included in a real estate commission?
A: Commission covers marketing, showings, negotiations, paperwork, and the agent's expertise throughout the selling process.