1. What is Real Estate Commission?

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

2. How Commission is Calculated

The standard commission calculation is:

Where:

• Sale Price — Final selling price of the property in Canadian dollars
• Commission Rate — Percentage agreed upon between seller and agent

Note: The total commission is often split between the buyer's and seller's agents according to their agreement.

3. Typical Commission Rates in BC

Details: In British Columbia, typical commission rates range from 3% to 7% of the sale price, with most transactions falling between 4-5%. The exact rate is negotiable and may vary based on:

• Property value (higher-value properties may have lower percentages)
• Market conditions
• Services included
• Agent experience

4. Using the Calculator

Instructions: Enter the sale price of the property in CAD and the agreed commission rate (percentage). The calculator will show the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Is commission negotiable in BC?
A: Yes, commission rates are always negotiable between the seller and their 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: Are there additional fees beyond commission?
A: There may be additional fees for marketing, administrative costs, or GST on the commission, depending on your agreement.

Q4: What's the average commission for a $1 million home in BC?
A: At a 5% rate, the commission would be $50,000, typically split between listing and buying agents.

Q5: Are there flat-fee alternatives?
A: Some brokerages offer flat-fee services, but these may include fewer services than traditional percentage-based commissions.