The average real estate agent commission in Nova Scotia is 5%, but it can range from 4% to 6%. The seller of the home would pay this commission, not the buyer. This commission is usually split equally between the seller’s agent and the buyer’s agent.
In some cases, the seller agent may take a smaller portion of the commission and provide the buyer’s agent with a larger portion. This gives an incentive for buyer agents to show the seller's house to prospective buyers.
It is important to note that commissions are negotiable in Nova Scotia. When a discount is negotiated on the commission rate, the seller agent usually bears the cost, with the buyer agent still receiving their normal commission rate.
This means that if you are able to negotiate a discount on the commission rate, the buyer agent will still receive their normal rate. However, not all seller agents are willing to reduce their portion of the commission. Occasionally, the agents may negotiate to both receive the reduced rate equally.
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.
HST applies to real estate agent commissions. This means that on top of paying both the buyer’s agent and the seller’s agent commissions, the seller would pay tax on the commission. The HST rate in Nova Scotia is 15%.
Real estate agents may provide incentives to homebuyers, such as giving buyers a portion of their commission. This is known as a cashback rebate, and it is provided by cashback agents.
|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.