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

2. How Commission is Calculated

The commission is calculated using this simple formula:

Where:

• Sale Price — The final selling price of the property in Canadian dollars
• Commission Rate — The agreed percentage rate (typically between 3-7% in BC)

3. Typical Commission Rates in BC

Details: In British Columbia, the standard total commission rate ranges from 3% to 7% of the sale price, with the average being around 5%. This is typically split as:

• 3.125% on the first $100,000
• 1.1625% on the remaining balance

However, rates are always negotiable between the seller and their realtor.

4. Using the Calculator

Tips: Enter the sale price of the property in Canadian dollars 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 realtor commission in BC?
A: Typically, the seller pays the commission, which is then split between the listing and buying agents according to their agreement.

Q2: Are commission rates fixed in BC?
A: No, commission rates are negotiable. There is no standard rate set by law or real estate boards.

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

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 the commission split between agents?
A: Typically 50/50 between listing and buying agents, but this can vary based on the specific agreement.