Realtor commissions are based on the price of the home and the size of the commission a real estate agent wants to earn. The average commission rate in BC is 6 percent, but this can vary widely from region to region and market to market.
For instance, in some regions, it’s illegal for agents to charge both a listing fee and a buyer’s broker fee, so they’ll charge only one or the other. The size of your commission will also depend on whether you’re buying or selling and which type of transaction you’re doing – purchase or sale with existing financing, or cash sale.
Here’s how to calculate your realtor fee:
1) What type of transaction you’re doing: Purchase or sale with existing financing, or cash sale?
2) Find out how much money was borrowed for the purchase (or refinancing), called “loan amount.” This is usually stated as a dollar figure that includes fees and costs associated with getting the loan approved (including points).
3) Subtract any down payment made by either buyer or seller. This is typically 5% of loan amount, but again can vary widely depending on where you live and who owns the property being sold
4) Subtract any closing costs paid by either buyer or seller. These include things like lender fees, title insurance premiums, appraisal fee and so on.
5) Divide the result by 2 to get your “adjusted purchase price” or what you can afford based on your income and debt ratios.
Or simply search online for realtor fee calculators that will do the math for you.
What is a Realtor Fee Calculator?
The realtor commission BC calculator is a tool that can be used to determine the amount of commission that a real estate agent will earn for their services. The calculator also helps determine how much money down payment should be made by either buyer or seller, as well as the closing costs associated with selling or purchasing a home.
