realtor commission calculator BC
How to Use a Commission Calculator for Vancouver Realtor Fees
Our commission calculator will tell you how much you’ll net on your home’s selling price.
If your property sells for $400,000, not all of it’s going into your pocket—even if you’ve paid your mortgage in full.
As a home seller, you’re typically responsible for real estate fees, which are a percentage of your home’s purchase price. In Vancouver, it’s typically 7% of the first $100,000, and then 2.5% thereafter, split between the buyer and seller. However, due to Canada’s Competition Act, there technically isn’t a set commission fee. Instead, real estate commissions are determined by realtors, their brokerage offices, and sometimes the terms you agree to when working with them.
In this post, we’ll explain:
- What real estate fees are and why you pay it
- What fees are included, and what they cover
- How to calculate commission
- Why you should use our commission calculator
What are Real Estate Fees and Why Do You Pay It?
Real estate fees are how realtors make money. They are the cost of doing business with an agent.
Many of us work and live on commission. When we buy marketing materials, set up open houses, and buy your dinner after a day of checking out potential homes, those costs are all coming out of pocket.
We’re also incentivized to get the best deal for your home. The more we can sell it for, the more we both make. For example, if we sell your home for $300,000 at a 3% commission, our real estate commission is $9,000. If we can sell it for $350,000, our commission increases to $10,500! Vancouver real estate fees are usually split fees, so the math is a little more complicated, but you get the idea.
What Fees Are Included, and What Do They Cover?
They include your listing agent’s commission rate, the buyer’s commission, and your goods and services tax (GST).
These fees cover various services, including but not limited to:
- Listing and marketing your home
- Home staging costs
- Real estate photography and video tours
- Running and attending open houses
- Negotiating and facilitating your close
- Paperwork errors that you’d otherwise be responsible for
How to Calculate Commission
Our commission calculator makes it easy to figure out your net profit for your home. The calculator has five sections:
- Purchase price
- Seller’s agent commission
- Buyer’s agent commission
- GST
- Net profit
As mentioned before, Vancouver real estate fees are usually 7% for the first $100,000, then 2.5% thereafter. The seller’s agent receives 3.875% of the first $100,000, and 1.3375% of the remainder of the balance. Meanwhile, the buyer’s agent receives 3.125% of the first $100,000, and 1.1625% of the remaining balance. These numbers sometimes change, depending on the market and contingencies, but this is the commission rate disbursement you’ll usually see.
Our online calculator can show you exactly how much your realtor fees will be in a matter of seconds.
For example, let’s say Steve is selling his home for $400,000 at this commission rate:
| Item | Fee | Total |
| Purchase Price | N/A | $400,000 |
|
Seller’s Agent Commission (first $100,000) |
3.875% | $3,875 |
|
Seller’s Agent Commission (last $300,000) |
1.3375% | $4,012.50 |
|
Buyer’s Agent Commission (first $100,000) |
3.125% | $3,125 |
|
Buyer’s Agent Commission (last $300,000) |
1.1625% | $3,375 |
| GST* | 5% of fees | $719.38 |
| Net Profit | N/A | $384,893.13 |
*Your GST is 5% of the total commission fees. In this case, it’s $14,387.50 x .05, or $719.38.
In the end, the seller’s agent’s commission fee is $7,137.50, the buyer’s agent’s commission fee is $6,500, and Steve makes $384,893.13 on his sale.
Let’s try this again. Amanda is selling her home for $750,000. Here’s the breakdown of the commission fees:
| Item | Fee | Total |
| Purchase Price | N/A | $750,000 |
|
Seller’s Agent Commission (first $100,000) |
3.875% | $3,875 |
|
Seller’s Agent Commission (last $650,000) |
1.3375% | $8,693.75 |
|
Buyer’s Agent Commission (first $100,000) |
3.125% | $3,125 |
|
Buyer’s Agent Commission (last $650,000) |
1.1625% | $7,556.25 |
| GST* | 5% of fees | $1,162.5 |
| Net Profit | N/A | $725,587.50 |
Play around with our commission calculator to see how much you’ll make when selling your home!
Why Should You Use Our Realtor Commission Calculator in BC?
Short answer: to figure out how much you’re going to make.
For example, if you’re looking to simultaneously buy and sell a home, you need to know how much money you’re making from your sale to put into your new home. It could impact your mortgage payment, remodeling choices, and help you better prepare your budget.
Let’s assume Steve’s home goes for $450,000 instead of $400,000
| Item | Fee | Total |
| Purchase Price | N/A | $450,000 |
| Seller’s Agent Commission (first $100,000) | 3.875% | $3,875 |
| Seller’s Agent Commission (last $350,000) | 1.3375% | $4,681.25 |
| Buyer’s Agent Commission (first $100,000) | 3.125% | $3,125 |
| Buyer’s Agent Commission (last $350,000) | 1.1625% | $4,068.75 |
| GST* | 5% of fees | $787.5 |
| Net Profit | N/A | $433,462.50 |
Steve would make $433,462.50 instead of $384,893.13, and he’s netting an additional $48,569.37!
Play around with our commission calculator to see how much you’ll make when you sell your home. Then, when we’re ready to make the sale, send us a message!