The average real estate agent commission in New Brunswick is 5%, but it can range from 5% to 7% . If you are buying a home, you will not have to pay any commission. Instead, the seller of the home will pay the commission to both the buyer and seller agents.
Most commissions are a percentage of the selling price of the home. Some real estate agents may charge a flat fee instead, especially for homes that have a low value.
As real estate agents provide a service, you will have to pay tax on real estate commissions. The HST rate in New Brunswick is 15%.
The above chart demonstrates the following: 5% commission on the selling price and a 15% tax that is applied to the total commission. The remaing values is what you receive.
While the average commission is 5% in New Brunswick, you can always negotiate with your agent. There is no set standard or regulation that prevents you from getting a lower commission rate. Some cashback agents. may even share a portion of their commission with you.
If you do negotiate a discount on the commission rate, the seller agent usually receives a lower commission, while the buyer agent would still receive their normal amount. This means that buyer agents will not be discouraged from showing potential buyers to your home.
There are discount real estate brokerages that operate in New Brunswick that allow you to list a property for a much lower rate, or even for a flat fee.
All real estate agents must be licensed by the New Brunswick Financial and Consumer Services Commission as well as be a member of the New Brunswick Real Estate Association.
|Province||Typical Real Estate Commmission Rate||Average Sold Prices of Homes in September 2020||Average Total commission Paid to Both Agents|
|Alberta||7% for 1st $100K and 3% for the remaining balance||$403,163||$16,095|
|Ontario||5% of total price||$741,395||$37,070|
|B.C. (Greater Vancouver Area)||7% for 1st $100K and 2.5% for the remaining balance||$801,039||$24,526|
|Saskatchewan||6% for 1st $100K, 4% for the 2nd $100K, and 2% for the remaining balance||$403,163||$16,095|
|Manitoba||5% of the total price||$308,689||$15,434|
|Quebec||5% of the total price||$477,609||$23,880|
|Nova Scotia||$1,500 flat fee for properties under $25,000, and 5% of the total price for other properties||$319,726||$15,986|
|New Brunswick||5% of the total price||$203,907||$10,195|
|Prince Edward Island||5% of the total price||$300,538||$15,778|
|Newfoundland and Labrador||5% of the total price||$249,368||$13,091|
Ontario and British Columbia have some of the highest housing prices, which results in higher average total real estate commissions. Although British Columbia’s real estate commission rates are one of the lowest in the country, homeowners ultimately end up paying a comparatively higher real estate commission due to the higher average selling price of homes.