BC Realtor Fees & Real Estate Commission Calculator

Updated by Mike Stewart Realtor on January 29, 2024

British Columbia Realtor
Commission Calculator

Use this form to find out the commission fees amount for
Real Estate in British Columbia:

Assumptions: 7% fee charged to the first $100,000 of purchase price, remaining balance charged fee of 2.5%, GST charged 5%. Buyers agent receives 3.125% on the first $100,000 and 1.1625% on the balance.
All results are calculated based on the input variables provided by the user, and assumptions that are believed to be reasonable.
MikeStewart.ca does not make any express or implied warranties with respect to the information or results in connection to this, or any other calculator.
MikeStewart.ca will not be held liable for any losses or damages resulting from any errors or omissions in any information or results, or any action or decision made by users in reliance on any information or results.
Please consult a financial professional when making important financial decisions.

This page is to designed to create a clear understanding and to all the calculation of real estate commissions in Vancouver and for across British Columbia, Canada. Included below is a real estate commission calculator for BC based on the the Real estate commission fees I charge.

Note: this page does not discuss a standard Realtor fee for Canada or the standard real estate fees BC Realtors charge.

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Realtor Fees BC – How Much?

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

I charge a seller a real estate commission percentage 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).

This is called a blended commission amount because it involves two percentages on different amounts of the commission.

This is an image of a Realtor Commission BC provided by Mike Stewart to help use his Vancouver Real Estate Commission Calculator to calculate real estate fees bc. This realtor fee calculator is specifically for what Mike Stewart Realtor charges as there is no set real estate fees in Canada. Realtor Commission Calculator BC

Thinking of Selling a Property in Vancouver or BC?

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 highly 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.

THINKING OF SELLING?

Use this form to find out how to sell your home sooner and for more money.

"*" indicates required fields

Join Mike's Presale Condos VIP List!

Be first to hear about new Presales and Gain Access to VIP Openings and Special Promotions.

Name*
I am a:*
Property Type
Realtor Status
Please send me:

Your Privacy is important to us. View our Privacy & Data Collection Policy.

This field is for validation purposes and should be left unchanged.

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 terms of BC real estate fees, a commission is the amount a real estate agent gets paid to represent a potential buyer or a seller in a property sale for real estate services and the amount is usually expressed in percentage terms of the transaction price.

To look at it from a buyer or a sellers perspective, real estate commissions are the transaction fees or one of the costs to sell real estate (even though buyers typically do not pay commission – more on that below)

Real Estate Fees in Vancouver – How Are They Calculated?

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. The result is that BC real estate commissions tend to be lower than many other jurisdictions.

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 brokerages that charge a flat fee or a single low commission percentage to sell a home, but this is small part of the market and more common in rural areas. This is not the model of our real estate brokerage.

Just to confirm Realtor commission is not set by a real estate board or the Canadian Real Estate Association or any other public body.

Each and every real estate professional in Canada sets their own commission rate. Realtor can lower commission fees or raise their real estate fees as they see fit.

How Much Commission Does a Buyers Agent Get Paid?

Real estate agents representing sellers offer or listing agent 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 buyer agent commission is payable if said buyer agents clients purchase the property in question in a real estate transaction.

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 buying 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 real estate fee 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 calculator above once you click “Calculate”

Realtor Commission BC – When is it Paid?

Typically Realtors get paid on the Completion Date.

This 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.

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.

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

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.

BC Realtor Commission – Who Pays?

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.

Please note – Sellers (and Buyers) NEVER pay their Realtor directly. All commissions and real estate fees in BC are paid to a Realtors brokerage typically by the lawyers handling the conveyancing and then to the Realtor.

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 real estate agent 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 Real Estate Commission with GST

We tried to make this simple commission calculator as easy to use as possible with this step by step guide.

Step Number 1

Input the potential sale price of the property in question in the form in the realtor fee calculator above to the right of where is says “Purchase Price”.

We have put a red circle (hand drawn to catch your attention!) around the field where you input the potential sale prices to calculate the commission.

Want to know what your place is worth? Check out this great video on Comparative Market Analysis or call me at 604-763-3136) in the form above.

Step Number 2

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.
  • To get the total commission amount, just subtract the “Seller Receives” amount from the “Purchase Price”

What This BC Realtor Commission Calculator Does

Basically, this 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 real estate 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 real estate listing fee calculator, feel free to call me directly at 604-763-3136 for assistance.

Does the Commission Sell System Work?

In the dynamic real estate market of British Columbia, understanding the intricacies of the ‘commission sell’ process is crucial for both buyers and sellers.

The commission sell approach ensures that realtors are compensated for their expertise, dedication, and hard work in facilitating property transactions.

By leveraging a transparent commission structure, sellers can confidently navigate the market, knowing that their realtor is motivated to achieve the best possible outcome for their property sale.

Possible Changes to How Real Estate Agent Commission Works in Canada

A recent US court decision may have big implications for how real real estate agent commission works in Canada. Currently there is a similar case going through Ontario courts that will confirm if changes are coming.

The lawsuit alleges price-fixing within the Greater Toronto Area’s (GTA) real estate industry, arguing that an illegal agreement among brokerages artificially inflated buyer brokerage commissions.

The federal court has permitted this lawsuit to proceed, which challenges the practice of sellers paying commissions to both their and the buyer’s brokerages, a norm that some argue has contributed to the high costs of housing in the GTA.

If the lawsuit succeeds, it could set a precedent that may decrease housing costs by altering how commissions are structured, potentially affecting the entire real estate industry in Canada​1​​2​.

The claim touches on anti-competitive practices and could force a reevaluation of the rules imposed by industry associations on their members, ensuring they don’t amount to illegal price controls. Moreover, the lawsuit is seen as a challenge to the industry standard of commission offerings and could lead to changes that might lower the overall cost of selling property in Canada​2​.

The lawsuit may not be successful in Canada due to the fact we have a different legal structure for our real estate system and also that our commission rates are far lower than the 6% that prevails across the US.

Only time will tell.

Examples of BC Real Estate Commission Fees at Various Sale Prices

Below is 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 – all sums on this page are in Canadian dollars.

Examples of Real Estate Commission Fees at Various Sale Prices

Purchase Price Total Commission Seller’s Agent Commission Buyer’s Agent Commission GST Seller Receives
$500,000 $17,000 $9,225 $7,775 $850 $482,150
$1,000,000 $29,500 $15,913 $13,588 $1,475 $969,025
$1,500,000 $42,000 $22,600 $19,400 $2,100 $1,455,900
$2,000,000 $54,500 $29,288 $25,213 $2,725 $1,942,775
$2,500,000 $67,000 $35,975 $31,025 $3,350 $2,429,650
$3,000,000 $79,500 $42,663 $36,838 $3,975 $2,916,525
$3,500,000 $92,000 $49,350 $42,650 $4,600 $3,403,400
$4,000,000 $104,500 $56,038 $48,463 $5,225 $3,890,275
$4,500,000 $117,000 $62,725 $54,275 $5,850 $4,377,150
$5,000,000 $129,500 $69,413 $60,088 $6,475 $4,864,025
$10,000,000 $254,500 $136,288 $118,213 $12,725 $9,732,775

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’s

What is a realtor commission?

Answer: A fee paid to a real estate agent for representing a buyer or seller in a property transaction, usually expressed as a percentage of the sale price.

Who decides the amounts in the Realtor fees calculator on this page?

Mike Stewart.

How is the realtor commission calculated in Vancouver and BC?

Answer: The commission is typically 7% on the first $100,000 of the sale price and 2.5% on the balance, though individual realtors may have different rates. Around 50% of this commission is paid to a buyers agent who’s buyers bring an offer that completes at the Land Titles Office.

Are real estate fees included in Closing Costs?

Yes. Realtor fees are included in closing costs and are usually are the largest part of the cost.

Is Property Transfer Tax payable on real estate commission?

No. Property Transfer Tax (BC’s land transfer tax) is payable on the purchase price and not the commission.

Is property tax, the monthly payment, mortgage insurance related to or affected by real estate agent fees?

No. These taxes are not related directly to a real estate agent fee.

Do a mortgage rates have an impact on commissions?

Answer: Not directly. When mortgage rates are low, real estate prices and transactions tend to be higher which results in more commission being payable, but the commission fee percentage does not change. Mortgage rate and commission are not really connected directly.

Do buyers also pay a commission?

Answer: Typically, buyers do not pay real estate fees in British Columbia. The seller usually covers the real estate fee, which is then split between the home buyer’s and seller’s agents.

Is commission on a new home different than on an existing home?

Answer: Typically not. Sometime developers will give commission incentives to Realtors for presales.

When is the realtor commission paid?

Answer: Realtor commissions are usually paid on the Completion Date, the day when the property ownership is transferred and the sale amount is settled.

Is there a standard commission rate for all realtors in BC?

Answer: No, there’s no standard commission rate. Individual realtors set their own fees, and it’s essential to note that stating a standard commission is illegal in Canada.

Can I negotiate the realtor commission?

Answer: Yes, realtor commission fees are negotiable. It’s essential for sellers to know they can discuss and potentially adjust commission rates with their chosen realtor.

How much does the buyer’s agent receive from the commission?

Answer: Typically, around 48% of the commission goes to the buyer’s agent, but this can vary based on the agreement between the seller’s agent and the buyer’s agent.

What does “Completion Date” mean?

Answer: The Completion Date is the day when the seller transfers ownership to the buyer, and the buyer settles the payment. It’s different from the Possession Date, which is when the buyer can move into the property.

Why is there a difference in commission for the first $100,000 and the balance of the sale price?

Answer: This tiered commission structure is common in BC and is designed to account for varying property values. Other regions might have different commission structures.

Are there realtors who charge a flat fee instead of a percentage?

Answer: Yes, some real estate firms might charge a flat fee or a single low percentage, especially in rural areas or specific market conditions.

How can I estimate the net proceeds from my property sale after paying commissions and taxes?

Answer: You can use this calculator provided on the page to get an estimate of the net proceeds after deducting commissions and GST.

Are BC Real Estate Fees calculated on the final sale price of a property?

Answer: Yes. The total amount of the real estate commission fees we charge is on the final sales price or selling price of the property.

Is there a standard real estate commission fee in BC?

Answer: No.

There is no standard commission fee or average commission rate for real estate in British Columbia. Individual Realtors, set their own commission fees they charge.

When do real estate commissions get paid?

Answer: Typically, real estate commission fees are paid upon the completion of a purchase.

Who decides the amount of a BC real estate commission?

Answer: Individual Real Estate Agents in British Columbia set their own commission rates.

Is there GST on real estate commissions in BC?

Answer: Yes.

Are BC Real Estate Fees calculated on the final sale price of a property?

Answer: Yes.

The total amount of the real estate commission fees we charge is on the final sales price of the property.

Is there a standard real estate commission fee in BC?

Answer: 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?

Answer: Typically, buyers do not pay real estate fees in British Columbia.

When do real estate commissions get paid?

Answer: Typically, real estate commission fees are paid upon the completion of a purchase.

Who decides the amount of a BC real estate commission?

Answer: Individual real estate agents in British Columbia set their own commission rates.

Canada’s federal Goods and Services Tax is payable on real estate commission fees in British Columbia and across the country (Please note – some provinces and territories in Canada use the HST instead of GST – the focus of this post is on BC and we use GST).

GST in Canada is 5% and is payable on the amount of Realtor commission fees paid by the seller.

The GST on Realtor commission fees is not payable on the sale price of the property, only on the commission fees paid.

Why is the commission for the seller agent higher?

The seller agent or sellers agent has to cover the cost of listing and marketing the property so therefore gets a slightly higher percentage.

Are Realtor Fees Vancouver Realtors charge higher than other parts of BC?

Yes.

In many cases, Realtor fees in Vancouver are higher than may be prevalent in smaller rural communities.

Calculate Buyers Agent Commission?

You may not have to.

The good news is that in 99% of the time Buyers of Property in BC 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!