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, split between the buyer's and seller's agents.

2. How Commission is Calculated

The basic commission formula is:

Where:

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

Note: The total commission is often split between listing and buying brokers, and may include HST in BC.

3. Typical Commission Rates in BC

Current Rates: While commission rates are negotiable, typical rates in British Columbia range from 3% to 7% of the sale price, with the average around 5% for the first $100,000 and 2.5% on the remaining balance.

4. Using the Calculator

Instructions: Enter the property sale price in Canadian dollars and the commission rate percentage. The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates fixed in BC?
A: No, commission rates are negotiable between the seller and the real estate agent or brokerage.

Q2: Who pays the real estate commission?
A: Typically the seller pays the commission, which is then split between the listing and buying agents.

Q3: Is GST/HST added to commissions in BC?
A: Yes, GST (5%) applies to real estate commissions in BC. Some areas may also charge PST (7%).

Q4: Can I negotiate a lower commission rate?
A: Yes, commission rates are always negotiable. Discount brokerages may offer lower rates with fewer services.

Q5: How is commission split between agents?
A: The total commission is typically split 50/50 between listing and buying brokerages, with each brokerage then splitting with their agent.