BC Real Estate Agent (REALTOR®) Commission Calculator
Many home sellers are not sure about how much real estate commission they will have to pay to their realtor and how much tax (GST) will be payable on the real estate commission fee once the property sells. You can use the Commission Calculator below to find out by simply inputting the sale price of the property (i.e., purchase price paid by the buyer) and then clicking the "Calculate" button. Please enter the number only, without any punctuation or the "$" sign.
In the province of BC (including Greater Vancouver), real estate commissions are typically paid by the home seller for the services of both their listing agent (the seller's agent) and the home buyer's agent.
The calculator is based on the following assumptions. The total commission is 7% of the first $100,000 of the purchase price and 2.5% of the remaining balance. The home seller also has to pay GST (5%) on top of the total commission. The buyer's agent (also known as the co-operating agent) receives 3.225% of the first $100,000 of the purchase price and 1.1625% of the balance. In other words, the buyer's agent receives 46.5% of the total commission, and the seller's agent receives 53.5% of the total commission.
It should be noted that the above scenario has been simplified for clarity. In the real world, real estate commission is generally paid first to the real estate agent's brokerage and then disbursed to the real estate agent based on an agreement between the real estate agent and his/her brokerage. Also, if the buyer is unrepresented by an agent or if the seller's agent acts as a dual agent for both the buyer and the seller, the seller's agent's brokerage would receive 100% of the total commission.
It should be noted that the commission rate is neither fixed by law nor by any real estate board; it is negotiable between the home seller and the real estate agent engaged by the home seller. When a home seller signs a listing agreement with a real estate agent (realtor), the listing agreement includes a clause which specifies how much commission the seller has to pay the realtor once the property is sold. This clause is negotiable.