Real Estate Commission Calculator BC
BC Realtor Commission Calculator
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What You Should Know About Real Estate Commissions in BC
Understanding Real Estate Commissions in BC
Real Estate Commission Calculator tools can be helpful because commission rates in British Columbia are not standardized – they vary by brokerage, real estate team, or individual agent. That’s why it’s essential to have a clear conversation upfront to understand exactly what you’ll be charged before listing your home.
A typical commission structure is 7% to 8% on the first $100,000 of the sale price and 2.5% to 3.5% on the remaining balance. Remember that all real estate commissions are also subject to a 5% Goods and Services Tax (GST).
Understanding how commission works helps you make informed decisions and avoid surprises at closing.
Last updated: May 7, 2025
How Real Estate Commissions Work in BC
Who Gets Paid and How
In British Columbia, most real estate agents work on a commission basis, meaning they only get paid once a sale is successfully completed. The commission is typically deducted from the seller’s proceeds and paid out according to the terms outlined in the listing agreement or sales contract. Although buyers benefit from having professional representation, it’s usually the seller who covers the buyer’s agent’s commission, as part of the total commission agreed upon with their own listing agent.
By law, all commissions must be paid through a licensed real estate brokerage – agents cannot accept commission payments directly or sign listing or buyer representation agreements on their own. When a property is listed on the MLS®, the listing brokerage specifies the commission offered to cooperating brokerages, so buyer’s agents know their compensation before showing the property.
When a buyer submits an offer, their agent must disclose the portion of the commission they expect to receive, based on the information advertised in the Multiple Listing Service (MLS). At the time of offer presentation, the seller is given a Disclosure to Sellers of Expected Remuneration form, which clearly shows how the total commission is divided between the listing and buyer’s brokerages. Each agent is then paid by their respective brokerage according to the terms of their individual agreement.
Because most agents are independent contractors, their commission covers more than just their time; it also funds their marketing efforts, licensing fees, professional development, insurance, and other business expenses. In short, their earnings go toward providing the full service you receive.
Where Your Commission Dollars Go
Understanding Our Fee Structure
The chart below provides a clear and transparent breakdown of how our typical commission is distributed, so you can see exactly where your money is going.
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Realtor Fees in BC
If you can’t find the answer you need, don’t worry – ask us! We’re here and happy to help you out!
Do buyers pay Realtor fees in BC?
Generally, buyers do not pay realtor fees in BC. The seller typically covers the full commission, which is then split between the listing agent and the buyer’s agent. The amount can vary depending on the property’s value and the terms negotiated between the seller and their agent.
Can you claim Realtor fees on your taxes?
Yes, if you’re selling a property, realtor commissions are generally deductible from your capital gains. This means they can reduce your taxable profit on the sale. Always consult with a tax professional to understand how this applies to your specific situation.
How much does a Realtor earn in BC?
In the Vancouver, BC area, a Realtor’s total annual income is estimated to be around $131,000, with an average base salary of approximately $80,000 per year. These figures reflect median earnings and can vary significantly based on experience, sales volume, and market conditions.
Does a Realtor need to disclose their commission to a Buyer?
Yes. If a realtor is representing you, they are legally required to disclose any commission or remuneration they receive from a third party, including the seller. This ensures transparency and helps you make informed decisions.
Who pays the Realtor commission in BC?
In most real estate transactions in British Columbia, the seller pays the commission, which is then split between the listing agent and the buyer’s agent.
In rare cases, such as some off-market or private sales, a buyer may be responsible for paying their agent’s commission directly. However, this is uncommon and usually negotiated in advance.
Can you negotiate Realtor fees in BC?
Yes, realtor commissions in BC are fully negotiable. There is no fixed rate set by law, so you’re encouraged to discuss fees with your agent. The final commission often depends on the level of service, marketing strategy, and complexity of the transaction.