About Commissions

COMMISSIONS - So where does it go?

Example: $500,000 property with 6 & 3% commission

Total commission: $18,000
50/50 split with selling REALTOR® -$9,000
Office split (80/20) -$1,800

Out of the remaining $7,200 the REALTOR® pays tax plus expenses.

Expenses:

Fees: Office fees, VREB, MLS, BCREA, CREA
Advertising: Real Estate Victoria, Times-Colonist, Feature Sheets, Photos, signs
Auto: Insurance, Maintenance, Gas
Equipment: Lock boxes, pager, computer programs
Supplies: Photocopies, forms, office supplies
Postage: Mail outs, Postal Walks
Misc: Telephone, Fax, etc
Insurance: Errors and omissions

Net Amount to the REALTOR®: $1,500 - $2,500

It is important to consider that liability for each transaction that carries a REALTOR®'s name is a minimum of $2000 (the deductible for Errors and Omissions Insurance)