1. What is Alberta Realtor Commission?

The Alberta realtor commission is typically calculated as a percentage of the home's sale price. The standard commission structure in Alberta is 7% on the first $100,000 of the sale price and 3% on the remaining balance.

2. How Does the Calculator Work?

The calculator uses the Alberta commission formula:

Where:

• \( First\ \$100k \) — The first $100,000 of the sale price
• \( Rate_1 \) — Commission rate for first $100k (typically 7%)
• \( Balance \) — Remaining sale price above $100,000
• \( Rate_2 \) — Commission rate for balance (typically 3%)

Explanation: The calculation splits the sale price into two parts and applies different commission rates to each portion.

3. Understanding Commission Structure

Details: The tiered commission structure means the effective rate decreases as the sale price increases. This calculator shows both the dollar amount and effective percentage rate.

4. Using the Calculator

Tips: Enter the sale price in CAD. Default rates are set to Alberta standards (7% and 3%) but can be adjusted for different commission structures.

5. Frequently Asked Questions (FAQ)

Q1: Is commission negotiable in Alberta?
A: Yes, commission rates are always negotiable between the seller and realtor.

Q2: Who pays the commission in Alberta?
A: Typically the seller pays the commission, which is then split between the buyer's and seller's agents.

Q3: Are there additional fees beyond commission?
A: There may be additional fees for marketing, photography, or administrative costs - clarify with your realtor.

Q4: How is commission split between agents?
A: The total commission is typically split 50/50 between buyer's and seller's agents, but this can vary.

Q5: What's the average commission rate in Alberta?
A: While 7%/3% is common, average total commission typically works out to 3.5-5% of sale price depending on home value.