The short answer
There is no single standard selling fee. Start with your negotiated commission, lender payout, legal work and preparation costs. What remains after those deductions is more useful than the headline sale price.
BC Financial Services Authority: real estate remunerationCommission
Ask what the negotiated fee includes and which taxes are extra.
Mortgage payout
Request a dated payout statement, including any early-payment charge.
Your next budget
Subtract debt and selling expenses before planning your next down payment.
The basics
What selling actually costs you
Selling a home has two kinds of cost. Some come out of the sale money on completion day, such as the brokerage commission and the mortgage payout. Others you pay earlier, such as repairs, cleaning or moving. Completion is the day the money changes hands and title moves to the buyer.
Commission in BC is not set by law. BC’s real estate regulator, the provincial regulator, says any commission amount can be negotiated between you, your real estate professional and the brokerage. Many listing contracts use a percentage of the sale price, so the dollar amount rises as the price rises.
When an offer arrives, your agent must give you a Disclosure to Seller of Expected Remuneration form. It turns the percentage in your listing contract into a dollar figure for that offer. BC’s real estate regulator notes this figure does not include other costs such as lawyer or notary fees.
Why it matters
Your next purchase runs on the cash you keep
If you are buying again, your net proceeds often become your next down payment. Net proceeds means the money left after the mortgage payout and every selling cost. Planning from the sale price instead can leave a gap right when your next deposit or completion is due.
Selling a home you lived in also has a tax filing step. CRA says you must report the sale and designate the property as your principal residence on Schedule 3, and complete Form T2091(IND). CRA allows the principal residence exemption only if you report it.
How it works
Build your net-proceeds estimate
Read the fee clause in your listing contract
Note whether the fee is a percentage, a flat amount or a mix, and whether GST is added. Check what happens if you cancel. BC’s real estate regulator says the contract terms decide whether commission is owed after termination.
Order a mortgage payout statement
Ask your lender for the payout on your expected completion date, including any prepayment charge and discharge fee. Our mortgage penalty guide explains how that charge is worked out.
Get a legal quote for the sale
Your lawyer or notary handles conveyancing, the legal transfer of title. Ask for their fee and out-of-pocket costs in writing. Disbursements are third-party costs they pay on your behalf.
Price only the preparation you will do
List the repairs, cleaning, staging and storage you actually plan. Get written quotes for each instead of guessing a round number.
Check completion-day adjustments
Annual property tax, strata fees and utilities may be shared between you and the buyer up to completion. Ask your lawyer or notary how these appear on the statement of adjustments.
Recalculate when an offer arrives
Use the remuneration disclosure for that specific offer and confirm the payout date. Then compare the result with the cash your next home needs.
Avoid these
Seller cost mistakes
Assuming the fee is fixed
BC’s real estate regulator says there is no standard commission you must pay. Ask what services are included and compare the dollar cost at a few possible sale prices.
Agreeing to keep-the-overage pricing
An arrangement where the agent keeps everything above a set price is not allowed. BC’s real estate regulator says professionals cannot charge commission based on the gap between list price and sale price.
Ignoring referral fees
Your agent may earn a fee for referring you to an inspector, contractor or another agent. BC’s real estate regulator says any third-party remuneration must be disclosed to you in writing. Ask before you hire.
Skipping the tax filing
Even when no tax is owed on the gain, CRA requires the sale and the designation to be reported. Tell whoever prepares your return that you sold.
Example
A hypothetical net-proceeds worksheet
Every number below is an assumption for illustration. None is a quote, a market figure or a typical fee.
| Assumed sale price | $900,000 |
|---|---|
| Less assumed mortgage payout, including any charge | − $420,000 |
| Less assumed commission from the disclosure form | − $30,000 |
| Less assumed legal fees and out-of-pocket costs | − $2,000 |
| Less assumed preparation and moving | − $8,000 |
| Total deductions: $420,000 + $30,000 + $2,000 + $8,000 | $460,000 |
| Estimated net proceeds: $900,000 − $460,000 | $440,000 |
Replace each line with your own written quotes. Then subtract the cash your next purchase needs, including its own costs listed in our closing-costs guide.
Questions to ask
Questions before you list
Your listing agent
- Is the commission a percentage, a flat fee or both, and is GST extra?
- Will you walk me through the remuneration disclosure for each offer?
- Do you receive any referral fees from people you recommend?
- What do I owe if I cancel the listing?
Your lender
- What is my payout on my planned completion date?
- Which penalty method applies to my contract?
- Can I port this mortgage to my next home?
- Is there a discharge fee?
Your lawyer or notary
- What are your fees and out-of-pocket costs for the sale?
- Which items will be adjusted on completion?
- When will the sale money reach my account?
FAQ
Common questions
Is there a standard real estate commission in BC?
No. BC’s real estate regulator says commission can be negotiated between you, your agent and the brokerage. If you cannot agree, either side may decide not to work together. Compare the services offered, not just the rate.
Can I renegotiate the commission partway through a listing?
BC’s real estate regulator says it can be renegotiated if both sides agree, for example when the services change. Neither side has to accept a change. Without agreement, the original listing terms continue.
How do I see the commission in dollars before accepting an offer?
Your agent must give you a Disclosure to Seller of Expected Remuneration. It converts the contract percentage into a dollar figure for that offer. Legal fees are not included in that figure.
Can I use the whole sale price for my next home?
No. Subtract the mortgage payout and all selling costs first. Then confirm the remaining cash and timing with your lender and your lawyer or notary. Our guide on whether to sell before you buy covers the timing.
Do I pay tax when I sell the home I live in?
CRA says there is no tax on the gain if the home was solely your principal residence for every year you owned it. You must still report the sale on Schedule 3 and complete Form T2091(IND).
