1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for facilitating a property sale. It's typically a percentage of the sale price and is split between the buyer's and seller's agents.

2. How Commission is Calculated

The basic commission formula is:

Where:

• Sale Price — The final selling price of the property
• Commission Rate — The agreed percentage rate (typically 5-7%)

Example: For a $500,000 home at 5% commission, the total commission would be $25,000.

3. Regional Differences (Alberta vs Texas)

Alberta: Typically ranges from 5-7% on the first $100,000 and 3% on the remainder. This calculator uses a flat rate for simplicity.

Texas: Average commission rates are around 5-6%, with variations by market and property type.

4. Using the Calculator

Steps: Enter the sale price, commission rate (percentage), and select your region (Alberta or Texas). The calculator will show the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Is commission negotiable?
A: Yes, commission rates are always negotiable between the seller and their agent.

Q2: Who pays the commission?
A: Typically the seller pays the commission, which is then split between both agents.

Q3: Are there additional fees?
A: There may be additional administrative or marketing fees - always review your contract.

Q4: How does commission get split?
A: The total commission is typically split 50/50 between listing and buying brokerages.

Q5: Are rates different for commercial properties?
A: Yes, commercial real estate commissions often follow different structures.