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
• \( Commission\ Rate \) — Agreed percentage rate between seller and agent

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

3. Typical Commission Rates in BC

Current Rates: In British Columbia, typical commission rates range from 3% to 7% of the sale price, with most transactions falling between 5% to 6% for the total commission shared between both agents.

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: Is commission negotiable in BC?
A: Yes, commission rates are always negotiable between the seller and their real estate agent.

Q2: Who pays the realtor commission?
A: Typically the seller pays the commission, which is deducted from the sale proceeds at closing.

Q3: Are there fixed-fee alternatives?
A: Some discount brokerages offer flat-fee services, but these may provide fewer services than full-commission realtors.

Q4: How is GST applied to commissions?
A: GST (5%) is added to the commission amount in BC and paid by the seller.

Q5: What's included in a typical commission?
A: Commission usually covers marketing, showings, negotiations, paperwork, and the services of both the listing and buying agents.