If you’re selling
BC Realtor Commission Calculator
There is no standard commission rate in British Columbia. Every rate below is something you can change, because every rate is something you can negotiate. Put your own quote in and see what it comes to. The figures start on the structure Bronson charges.
$36,225 in total, on a $1,200,000 sale. That is $34,500 commission plus $1,725 GST. That is 2.88% of the sale price before tax.
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The same sale at other rates
Rates that get quoted in this market, run against your $1,200,000 sale. Every figure includes GST. This is what negotiating is worth in dollars.
| Rate | Commission | With GST | Against yours |
|---|---|---|---|
| 7% then 2.5%the pairing most often quoted in BC | $34,500 | $36,225 | the same |
| 7% then 3% | $40,000 | $42,000 | +$5,775 |
| 3% flatsome full-service listings | $36,000 | $37,800 | +$1,575 |
| 2% flattypical of discount brokerages | $24,000 | $25,200 | −$11,025 |
| 1% flatthe low end of what is advertised | $12,000 | $12,600 | −$23,625 |
None of these is a standard rate, including the first one. Commission is set between a seller and a brokerage on each listing, and what a brokerage will accept depends on the property, the work involved and the market it is going into.
What the commission covers
The figure above is the whole listing commission, paid by the seller out of the sale proceeds on completion. It is normally split between the two sides of the deal, the brokerage that lists the home and the brokerage that brings the buyer, and each brokerage then pays its own licensee from its share. GST applies to the commission, not to the sale price of a resale home.
Commission is one line in what a sale costs. The mortgage payout, any penalty for breaking it, legal fees and adjustments all come off the same proceeds, which is what the cost of selling a house calculator works out end to end.
Common questions
What is the standard realtor commission in BC?
There is not one. Commission is negotiated between the seller and the brokerage on every listing, and under the Competition Act a licensee who presents a rate as standard is making a claim the law does not allow. The pairing you will see quoted most often is 7% on the first $100,000 and 2.5% on the balance, but that is a common quote rather than a rule, and rates below it are advertised across the province.Who pays the realtor commission?
The seller, out of the proceeds on completion. It is deducted by the conveyancer before the balance is released, so it is not a cheque the seller writes. The listing brokerage receives the whole amount and pays the cooperating brokerage its share from it, which is why a buyer usually pays nothing directly.Is GST charged on realtor commission?
Yes, at 5%, and it is charged on the commission rather than on the sale price. On a $1,200,000 sale at 7% and 2.5%, the commission is $34,500 and the GST on it is $1,725, for $36,225 in total. The sale of a resale home is itself exempt from GST; new construction is a separate matter.Can I negotiate the commission?
Yes. It is agreed in the listing contract before the home goes on the market, so it is a term you settle at the outset rather than at the end. What a brokerage will accept varies with the property, the amount of work a sale is likely to take and how the market is moving. Asking what a rate includes is usually more useful than asking only what it is. Marketing, photography, staging and the amount of the total being offered to the buyer side all differ between brokerages at the same headline rate.Why does the rate on the balance change with the price here?
Because Bronson's own does. It eases from 3% on sales at or below $500,000 to 2.5% at or above $800,000, moving proportionally in between, so a larger sale carries a lower rate on the larger part of it. Most published calculators use a flat 2.5% on the balance regardless of price. Leaving the field blank uses his rate for the price entered; typing a number uses yours.
Related
Estimate only. Confirm with a licensed professional before relying on this number.
