If you’re selling
BC Realtor Commission Calculator
This works out the listing commission Bronson charges: 7% on the first $100,000, then 3% on the balance under $500,000, easing to 2.5% at $800,000 and above. There is no standard commission rate in British Columbia, so the rates are editable if you are checking a quote from somewhere else.
$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.
Calculate
Where the money goes
The seller pays one figure on completion. The listing brokerage receives it and pays the brokerage that brought the buyer out of it, which is why a buyer usually pays nothing directly. At this price the buyer’s side is 46.0% of the commission, which moves with the price because the two rates slide differently. Both figures below include GST.
| Listing brokerage | $19,562 |
|---|---|
| Buyer’s brokerage | $16,664 |
Each brokerage then pays its own agent from its share, so neither figure is what any individual takes home.
What the fee pays for
The commission is charged on completion and only on completion. The work before that point is carried by the brokerage, and if the home does not sell, none of it is billed.
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. Bronson charges 7% on the first $100,000, then 3% on the balance under $500,000, easing to 2.5% at $800,000 and above. That is his structure, not a rule, and it is what this calculator works out.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.How is the commission split between the two agents?
The listing brokerage receives the whole amount and pays the brokerage that brought the buyer a share of it. Bronson offers 3.22% on the first $100,000 and 1.15% on the balance, set in the listing contract before the home goes on the market. Each brokerage then pays its own agent out of its share, so neither number is what an individual takes home.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 a term of the listing contract, agreed before the home goes on the market rather than at the end. The rate above is the one quoted at a listing appointment, not an opening figure with margin in it to be talked down. What a rate includes still differs between brokerages at the same headline number. Ask what is covered: marketing, photography, staging, and what is offered to the buyer side.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.
