1. What is Realtor Commission?

Realtor 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 and is negotiated between the seller and their agent.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• \( Sale\ Price \) — Final selling price of the property in CAD
• \( Commission\ Rate \) — Agreed percentage rate (typically 3-7%)

Example: For a $1,000,000 home with 3.5% commission, the total commission would be $35,000.

3. Typical Commission Rates in BC

Details: In British Columbia, commission rates typically range between 3% to 7% of the sale price, with 3.5% being common in many markets. The rate is negotiable and may vary based on:

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

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Who pays the realtor commission in BC?
A: Typically the seller pays the commission, which is then split between the listing and buying agents.

Q2: Is commission negotiable in British Columbia?
A: Yes, commission rates are always negotiable between the seller and their agent.

Q3: Are there additional fees beyond commission?
A: There may be additional fees for marketing, staging, or administrative costs, which should be outlined in the listing agreement.

Q4: How is commission split between agents?
A: The total commission is typically split between the listing brokerage and buyer's brokerage, often 50/50 but this can vary.

Q5: Is commission subject to taxes in BC?
A: Yes, GST applies to real estate commissions in British Columbia.