Updated by Mike Stewart PREC March 23, 2023

Vancouver Commission Calculator Real Estate

This page is to designed to create a clear understanding and calculation of real estate commissions in Vancouver and across British Columbia, Canada.

How much are BC real estate fees?

When it comes to real estate commission fees, I can only quote what I charge (which have not changed since I became a licensed BC Realtor in 2005).

I charge a seller in a real estate commission of 7% on the first $100,000 of the sale price and 2.5% on the balance of the sale price for properties in Vancouver, British Columbia and surrounding cities. (Please note – around 48% of this amount or 3.125% on the first $100,000 and 1.1625% on the balance goes to a buyers agent – please see below for more details).

Thinking of Selling a Property?

Have a look at these great videos on How to Sell a Property in Vancouver.

Real estate commissions and how they are discussed by Realtors in Canada are regulated by the Federal Government.

The reason I mention the amount of real estate commissions I personally charge sellers and not a standard amount is because saying that there is a standard real estate commission is illegal in Canada.

Yes, illegal.

According to Canada’s Competition Act, there we Realtors are not supposed to say there is a standard real estate commission. We are required to do this to ensure that a prospective seller knows that they can negotiate on commissions.

What is a Real Estate Commission Fee?

Merriam-Webster dictionary defines a commission as following:

A fee paid to an agent or employee for transacting a piece of business or performing a service
especially : a percentage of the money received from a total paid to the agent responsible for the business

In real estate in British Columbia, a commission is the amount a real estate agent gets paid to represent a buyer or a seller in a property sale and the amount is usually expressed in percentage terms. To look at it from a buyer or a sellers perspective, real estate commissions are the costs to sell real estate (even though buyers typically do not pay commission – more on that below)

How is Realtor commission calculated in BC?

In British Columbia, Realtor commission fees are typically a percentage of the sale price of the property.

Typically the commission fee is a percentage of the first $100,000 of purchase price and then a percentage of the balance of the sale price.

Other jurisdictions like California may use one single percentage to calculate Realtor commissions, for example a 6% commission on the sale price, but standard calculation across BC is to use a percentage of the first $100,000 and then percentage of the balance.

Is there variation in commission?

Yes, there is absolutely variation in how much Realtors charge in terms of commission. Again, Canada’s federal Competition Act specifically requires Realtors to stress there is no set commission rate to sell properties in Canada.

The variation in real estate commissions tends to vary by market and property type. Some Realtors in higher end markets may ask for and in many cases get a higher commission. Realtors may also negotiate a higher commission for prospective sales that may be more difficult or challenging.

There are some real estate firms who charge a flat fee or a single low percentage to sell a home, but this is small part of the market and more common in rural areas.

How Much Commission Does a Buyers Agent Get Paid?

Real estate agents representing sellers offer a commission to buyers agents as part of the cooperation system of the Multiple Listing System (now referred to as Realtor.ca for the general public). This buyers agent commission is payable if said buyers agents clients purchase the property in question.

Again, there is not a standard amount that a sellers agent will offer a buyers agent to bring their buyers. What is offered to the buyers agent and how a Realtor discusses this topic is regulated in Canada. According to the Competition Act, I am only able to discuss what I charge sellers for commission and offer buyers agents. Realtors are not allowed to say there is a standard buyers agent commission.

I offer buyers agents when I represent a seller: I offer buyers agents around HALF (3.125% on the FIRST $100K of the sale price & 1.1625% on the balance of the sale price) of the 7% on the first $100,000 of the sale price and 2.5% on the balance of the sale price is payable to a buyers agent who brings the seller an offer that completes at the Land Titles Office.

This amount can found in the “Buyers Agent Commission” field of the commission calculator above once you click “Calculate”

How Much Does a Sellers Agent Get Paid?

I receive 3.875% on the first $100,000 of the purchase price and 1.3375% of the balance of the purchase price. This amount can found in the “Sellers Agent Commission” field of the commission calculator above once you click “Calculate”

When Are BC Realtor Fees Paid?

Realtors only get paid when a property sells. If a property does not sell, Realtors do not get paid.

Real estate commissions in British Columbia are typically paid to the buyers agent and the sellers agent upon or within a few days after the Completion Date of property sale.

The Completion date is the day on which the seller gives the buyer ownership and the buyer gives the seller the money for the property and title of said property transfers at the land titles office.

Please note, the Completion Date is not the Possession Date. The Possession Date is the day a buyer can move in and is typically after the Completion Date.

Who Pays Realtor Commission in British Columbia?

The seller pays the realtor commission in BC with the vast majority of property transactions that occur. In some cases a seller may not want to pay commission and a buyer may have to pay their Realtor a commission, but this is a very rare occurrence and may be more common with transactions off of MLS.

How Much do Sellers get after Commissions are Paid?

Real Estate commissions and the net proceeds (for example the amount a Seller receives from a real estate sale after costs) are often confusing for prospective property Sellers in Vancouver.

Most Sellers aren’t sure about how much commission they will have to pay and how much tax (GST) will be payable on the real estate commission fee once the property sells.

This Vancouver home sale calculator specifically answers this question above and should give a prospective seller a clear picture of exactly how much they will receive after the sale of their property. The calculator also determines the amount of GST that will be payable on the amounts paid to the buyers and sellers agents.

How to Calculate BC Realtor Commissions with GST

We tried to make the calculator is easy to use as possible.

Step number 1 – Input the potential sale price of the property in question in the form above to the right of where is says “Purchase Price”

Check out this great video on Comparative Market Analysis or call me at 604-763-3136) in the form above.

Step Number 2 – Click “Calculate” to the bottom left.

Once you have clicked “Calculate” you should see the following amounts in Canadian dollars:

• Sellers Agent Commission
• Buyers Agent Commission
• GST the Seller pays on the commission amounts above
• Sellers receives – This is what a seller will get the sale proceeds from the property after all the real estate commissions (amount above) and GST (amount above) on the commission are deducted.

Basically, this commission calculator lets a seller how much they will end up with in their pocket when once the transaction their property completes after all costs of the sale.

Remember Folks! There is no standard or average real estate commission fee in Vancouver and across Canada and your Realtor fees are negotiable always!

Remember! Around 48% of the Commission calculated above goes to the Buyers Agent who brings an offer that gets accepted and Completes at the Land Titles Office!

If you are having any issues with this calculator, feel free to call me directly at 604-763-3136 for assistance.

Examples of Real Estate Commission Fees at Various Sale Prices

Here’s an example of real estate commission fees in Vancouver and the GST payable on those commissions on this calculator for sale prices ranging from $500,000 to $10,000,000:

Please note these calculations above are based on the following assumptions:

• Gross Commission Paid by the Seller – 7% on the 1st $100,000 & 2.5% on the Balance of the sale price
• Commission the Buyers Agent Receives – 3.125% on the first $100,000 & 1.1625% on the balance
• Commission the Sellers Agent Receives – 3.875% on the first & 1.3375% on the balance
• 5% GST payable on the Gross Commission

BC Real Estate Fees FAQ

Is there a standard real estate commission fee in BC? No. There is no standard commission fee for real estate in British Columbia. Individual Realtors, set their own commission fees they charge.

Do buyers pay commission? Typically, buyers do not pay real estate fees in British Columbia.

When do real estate commissions get paid? Typically, real estate commission fees are paid upon the completion of a purchase

Who decides the amount of a BC real estate commission? Individual Real Estate Agents in British Columbia set their own commission rates.

Is there GST on Realtor fees in BC?

Yes.

Canada’s federal Goods and Services Tax is payable on real estate commission fees in British Columbia and across the country.

GST in Canada is 5% and is payable on the amount of Realtor commission fees paid by the seller. The GST on Realtor fees is not payable on the sale price of the property, only on the commission fees paid.

Buyers Looking to Calculate Commissions on a Purchase

The good news is that in 99% of the time Buyers of Property in Vancouver DO NOT directly pay commission to their Buyers Agent. The calculator above has a break down of how much the buyers agent gets paid.

How Much Tax on The Sale Proceeds of Your Property in Canada?

Check out this great video on the definition of a Primary Residence in Canada!

Please note – all sums above are in Canadian dollars.