BC real estate commission explained: 7%, 2.5%, 3.22% and 1.15%
Four numbers come up whenever BC commission is discussed. Here is what each one is.
7% and 2.5%: the total
The common total commission on a BC listing is 7% on the first $100,000 of the price and 2.5% on the rest. On $1,000,000 that is $7,000 plus $22,500, or $29,500 before GST.
3.22% and 1.15%: the buyer's side
From that total, the listing brokerage typically offers the buyer's brokerage 3.22% on the first $100,000 and 1.15% on the rest. On $1,000,000 that is $13,570.
3.78% and 1.35%: what the listing side keeps
The difference stays with the listing brokerage: $15,930 on the same sale.
Why the split is uneven
Convention. Listing agents carry marketing costs and the listing itself; buyer agents are paid somewhat less on the balance. Nothing in law requires these exact numbers, and some listings use different ones.
Where the rebate and discount come from
Our partner agents return 50% of the buyer's side to buyers and cut 50% from the listing side for sellers, in the Lower Mainland. On $1,000,000 that is $6,785 back to a buyer or $7,965 saved by a seller.