“Realtor Fee” or “Commission” is one of the questions many home buyers and sellers will encounter in the real estate transaction. Figuring out Realtor Fees while trying to sell a home or condo in BC is especially tricky when Realtors have complicated commission rate structure. This blog will try to answer homebuyers’ questions regarding the real estate commission in BC. I’ll also provide an easy to use commission calculator to help home sellers figure out the cost of selling a house in BC.
Working as a Vancouver Realtor for the last 10 years, I have worked with many home Sellers. When meeting a seller to discuss their plan, their first question is usually “how much is my house worth?”. The second question they will ask is usually “what is the cost of selling a house in Vancouver”?
About Realtor Fees in BC
“Realtor Fee”, “Realtor Commission”, or “Real Estate Commission” in BC generally mean the same thing. So we’ll use these terms interchangeably.
Is there a Standard BC Realtor Fees?
As stated in the Competition Act of Canada, Realtors in BC and the rest of Canada, there’s no “Standard Realtor Fee”, or “Standard Realtor Commission.” As such, each Real Estate brokerage office and Realtor in Vancouver have their own Realtor fee.
What is Remax Realtor Commission Rates for the Seller?
RE/MAX is a real estate brokerage franchise individually owned and operated. Each brokerage has its own commission rate.
When helping a seller, I charge a Realtor Fee of 7% on the first $100,000 and 2.5% on the balance of the sale price for properties.
To help attract more Buyer’s realtor to show the Seller’s property, I typically offer 3.255% on the first $100,000 and 1.1625% on the balance of the sale price for properties to Buyer’s realtor.
Many times Sellers are mistaken and thought that they pay the Buyer’s realtor commission on top of the commission I charge. But it’s not the case. The buyer’s commission is deducted from the total Realtor fee I charge.
Therefore, the total Real Estate Commission I would receive is 3.745% on the first $100,000 and 1.3375% on the balance of the sale price for properties.
How to calculate commission?
To calculate the commission amount, let’s assume the sale price of a house is $1,000,000. Thus, 7% on first $100,000 is equal to $7,000. Then we take the balance of the sale price, which is $900,000, and multiply it by 2.5%, we get $22,500. We then add the two amount together, $7,000 + $22,500 we get a total of $29,500.
To help the BC Home Sellers quickly figure out the cost of selling a house in BC, I have prepared a BC real estate commission calculator. If you want to figure out the BC realtor fees when selling a home, just put in the estimated selling price of your home in the “Offer Price” box, and it will automatically calculate the Realtor fees you need to pay when selling a home. Since Realtors charge different commission rates, you can also change the commission rate in the “Total Commission Split” box.
Do I need to pay GST on the Realtor Commission?
Real estate brokerage service is like other services such services provided by the Accountant and Lawyers, and therefore are subject to the Goods and Service Tax in BC also.
In our previous example of the home sale price is $1,000,000. The realtor fee would be $29,5000. We need to add $1,475 for GST on top of the realtor fee. In total, the real estate commission plus the GST on the sale of a one million dollar home in Vancouver is $30,975.
Do I need to pay Realtor commission when buying a Condo in Vancouver?
Buyer’s typically don’t pay a Realtor fee when buying a Condo in Vancouver. When buying a condo in Vancouver, if you are working with a Buyer realtor, your realtor will receive real estate commission from the Seller. When working with a Realtor to help you buy a condo, your realtor is required to disclose to you the amount he/she will receive upon successful completion of the sale.
If you have any other questions about BC Realtor Fees, please feel free to contact me.