How Real Estate Commission Works in BC
Real estate commission in British Columbia is the fee paid to real estate agents for their services in buying or selling a property. Unlike some provinces, BC uses a tiered commission structure where agents charge a higher percentage on the first portion of the sale price and a lower percentage on the balance.
Commission is negotiable — there's no fixed rate set by law — but most agents in the Lower Mainland and Fraser Valley follow a similar tiered structure. The total commission is split between the seller's agent (listing agent) and the buyer's agent (cooperating agent).
Key Takeaway
Typical Commission Rates in BC (2026)
While commission rates are always negotiable, here are the typical rates you'll see in the Greater Vancouver and Fraser Valley areas:
| Agent | First $100,000 | Balance |
|---|---|---|
| Seller's Agent (Listing) | 7% ($7,000) | 2.5% on balance |
| Buyer's Agent | 3.255% ($3,255) | 1.1625% on balance |
| Combined Total | ~7% on first $100K | ~3.5–4% on balance |
These rates can vary by brokerage and agent. In competitive markets, some listing agents may offer slightly lower rates. In slower markets, rates tend to stay consistent. The key is to understand what services are included and what value your agent provides.
💡 GST on Commission
Who Pays the Real Estate Commission?
In BC, the seller is responsible for paying the total real estate commission. This includes both the listing agent's commission and the cooperating (buyer's agent) commission. The commission is deducted from the sale proceeds at closing.
- Sellers pay — The commission comes out of the sale proceeds. If you sell your home for $1,000,000, the commission is deducted before you receive your net proceeds.
- Buyers don't directly pay — As a buyer, you typically don't write a cheque for your agent's commission. However, some argue that commission is factored into the home price.
- Commission is in the listing contract — When you list your home, you sign a listing agreement that specifies the total commission rate and how it's split.
It's worth noting that commission structures have been a topic of discussion across North America. As a realtor in Surrey, I believe in full transparency about costs. Feel free to ask me about commission at any point in the process.
Commission at Different Price Points
Here's what total commission typically looks like at common BC home prices, using the standard tiered structure:
| Sale Price | Total Commission | GST (5%) | Grand Total |
|---|---|---|---|
| $500,000 | $17,000 | $850 | $17,850 |
| $750,000 | $23,250 | $1,163 | $24,413 |
| $900,000 | $27,000 | $1,350 | $28,350 |
| $1,000,000 | $29,500 | $1,475 | $30,975 |
| $1,200,000 | $34,500 | $1,725 | $36,225 |
| $1,500,000 | $42,000 | $2,100 | $44,100 |
Calculate Your Commission
Enter your sale price and see the exact commission breakdown including GST.
Can You Negotiate Commission?
Yes — real estate commission is always negotiable in BC. There is no fixed rate set by the Real Estate Council of BC or any regulatory body. However, there are a few things to keep in mind:
- Lower commission may mean less service — Some discount brokerages offer lower rates but provide fewer services (less marketing, no staging, limited showings).
- Buyer's agent commission matters — If you significantly reduce the cooperating commission offered to buyer's agents, fewer agents may show your property to their clients.
- Consider the full picture — A great agent who sells your home for $30,000 more than a discount agent is worth the higher commission. Focus on net proceeds, not just the commission rate.
- Get it in writing — Whatever commission you negotiate, make sure it's clearly outlined in your listing agreement.
If you're preparing to sell, I'd also recommend reading my guide on how to price your home using a CMA — pricing strategy has a much bigger impact on your net proceeds than commission rates alone.
What Does Commission Pay For?
Real estate commission covers a wide range of services that agents provide throughout the buying or selling process:
- Professional MLS listing with photography and virtual tours
- Market analysis and pricing strategy
- Marketing (online ads, social media, print materials)
- Showing coordination and open houses
- Offer negotiation and contract management
- Coordination with lawyers, inspectors, and mortgage brokers
- Guidance through the entire transaction from listing to closing
Commission also covers the agent's brokerage fees, insurance, licensing, and other overhead costs. The agent doesn't keep the full commission — a portion goes to their brokerage.