Realtor Commission in BC: What Selling Your Home Really Costs

How realtor commission works in BC

Commission is set in the listing agreement you sign with a brokerage, and it is usually expressed as a percentage of the sale price. BC Financial Services Authority, the regulator, does not set or approve commission rates: they vary by brokerage and are a contract term between you and the brokerage.

The structure most often quoted in the Lower Mainland is tiered: 7% of the first $100,000 of the price and 2.5% of the remainder. Some brokerages quote 3% on the remainder, some quote a flat percentage, and some quote a flat fee. On top of the commission you pay 5% GST. There is no PST on real estate services in BC.

The tier is why the headline number misleads. The 7% part is a fixed $7,000 no matter what the home sells for, so on a typical Fraser Valley home the total works out to about 3% of the price before GST.

Realtor commission calculator for BC

Enter your expected sale price. The rates start at the common 7% and 2.5% structure; change them to match any quote you have been given.

Who gets the commission, and how it is split

You pay the commission to your listing brokerage, not to the agent directly, out of the sale proceeds at completion. The listing brokerage normally offers part of it to the brokerage that brings the buyer, so one commission usually pays both sides of the deal. How much is offered to the buyer’s side is negotiated separately from your own brokerage’s share and set out before you list.

Each brokerage then pays its own agent under their own agreement, which is why the agent’s personal share is smaller than the total you see on paper.

When an offer comes in, your agent must give you a Disclosure to Sellers of Expected Remuneration. It shows, in dollars, what your brokerage will be paid and what will go to the buyer’s brokerage on that offer, so there are no surprises at completion.

Can you negotiate realtor fees in BC?

Yes. BCFSA’s own consumer guidance says the amount you pay your brokerage, and any amount shared with a buyer’s brokerage, is completely negotiable. It also says either side can propose a change later if the services change, but the other side does not have to agree; if you do not agree, the original terms stand.

One structure is not allowed: a brokerage cannot charge you a commission based on the difference between the list price and the price a buyer pays. Commission is calculated on the sale price.

The useful question is not only the rate but what it pays for: how the home will be priced, photographed and marketed, who handles showings and offers, and how much is offered to buyers’ agents, which affects how many of them bring buyers through. Compare those, then compare the rate.

The other costs of selling a home in BC

Commission is the largest line, but several others come out of the same proceeds. Ask for each one in writing before you list so your net number is real.

• GST at 5% on the commission.
• A lawyer or notary to complete the sale and discharge your mortgage. Get a written quote before you list.
• Your mortgage. Breaking a mortgage early can mean a prepayment penalty, which on a fixed rate can be large. Ask your lender for the exact payout figure.
• Property tax and strata fee adjustments at completion, so you pay only up to the day the buyer takes over.
• For a strata home, the Form B information certificate (up to $35 plus copying) and the Form F certificate of payment (up to $15).
• Repairs, cleaning, staging and moving.
• No property transfer tax. In BC the buyer pays it, not the seller.

Tax when you sell: principal residence and the flipping rules

If the home was your principal residence for every year you owned it, the gain is generally sheltered from capital gains tax by the principal residence exemption. Commission on a principal residence is not tax deductible, because there is no taxable gain for it to reduce. On an investment property, commission and legal fees are selling costs that reduce the capital gain.

Short ownership is where tax applies. BC’s home flipping tax, in force since January 1, 2025, taxes the profit on a home sold within 730 days of buying it: 20% if sold within 365 days, falling to zero by day 730, with a deduction of up to $20,000 for a home you owned and lived in for at least 365 days and exemptions for life events such as separation, illness or a job move. The federal residential property flipping rule separately treats profit on a home held under 12 months as business income unless a life event applies. If you are selling within 2 years of buying, talk to an accountant before you list.

Frequently asked questions