Realtor fees in BC, also known as real estate commissions, are typically paid by the seller of a property. These fees are not regulated, which means they can vary depending on the seller’s and the Realtor’s agreement. However, a typical structure in BC is the 7/3 split commission:
- 7% on the first $100,000 of the sale price.
- 3% on the remaining balance of the sale price.
This total commission is usually split between the listing agent (the seller’s agent) and the buyer’s agent, often equally, though this can be negotiated.
Example Calculation:
For a home sold at $1,000,000:
- First $100,000: 7% = $7,000
- Remaining $900,000: 3% = $27,000
- Total commission = $34,000
If the commission is split equally between the two agents:
- Each agent receives $17,000.
Additional Points to Consider:
- GST: Realtor fees are subject to Goods and Services Tax (GST), currently 5% in BC.
- In the example above, GST on $34,000 is $1,700, bringing the total commission to $35,700.
- Negotiation: Realtor fees are negotiable. Sellers can discuss different structures or rates with their Realtor.
- Flat Fees or Discounts: Some Realtors or brokerages may offer flat-fee services or discounted rates, but these often involve fewer services.
- Services Provided: Realtor fees generally cover services like marketing the property, hosting open houses, negotiating offers, and guiding the seller through the legal and logistical aspects of the sale.
If you’re selling a property in BC, it’s essential to clarify the commission structure and understand the services included in the fees before signing a listing agreement.