1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents/brokers for their services in facilitating a property sale. In Alberta and BC, commissions are typically percentage-based and negotiable between the seller and their agent.

2. How Commission is Calculated

The basic commission formula is:

In Alberta and BC, a common structure is:

• 7% of the first $100,000 of the sale price
• 3% of the remaining balance

3. Alberta/BC Commission Structure

Details: While commission rates are negotiable, the 7%/3% split is common in both Alberta and British Columbia. The total commission is typically split between listing and buying brokers.

4. Using the Calculator

Tips: Enter the property sale price in Canadian dollars and select the province. The calculator will automatically apply the standard commission structure.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates fixed by law?
A: No, commission rates are negotiable between the seller and their agent. The rates used in this calculator reflect common practice.

Q2: Who pays the commission?
A: Typically the seller pays the commission, which is then split between the listing and buying brokers.

Q3: Are there additional fees?
A: There may be additional administrative fees or taxes (GST) on the commission amount.

Q4: Can I negotiate different rates?
A: Yes, commission structures are always negotiable. Some agents may offer flat fees or different percentage structures.

Q5: Is the rate the same for all price ranges?
A: The 7%/3% split is common, but higher-value properties may have different negotiated rates.