1. What is Realtor Commission?

Realtor 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 and is 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 CAD
• \( Commission\ Rate \) — Agreed percentage rate (typically 3-7%)

Note: The total commission is often split between the listing agent and buyer's agent.

3. Typical Commission Rates in BC

Details: In British Columbia, standard commission rates typically range between 3-7% of the sale price, with the average being around 5%. Rates are negotiable and may vary based on:

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

4. Using the Calculator

Instructions: Enter the property sale price in Canadian dollars and the agreed commission rate (percentage). The calculator will compute 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 deducted from the sale proceeds at closing.

Q2: Is commission tax deductible?
A: For sellers, commission is deductible from capital gains. For businesses, it may be a deductible expense.

Q3: Can commission rates be negotiated?
A: Yes, commission rates are always negotiable between the seller and their agent.

Q4: What's included in the commission?
A: Commission typically covers marketing, showings, negotiations, paperwork, and coordination of the sale.

Q5: Are there flat-fee alternatives?
A: Some realtors offer flat-fee services, especially for experienced sellers who need limited services.