1. What is Realtor Commission?

Realtor commission is the fee paid to real estate agents for their services in buying or selling a property. In Alberta, this is typically a percentage of the final sale price of the property.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• Sale Price — Final selling price of the property in CAD
• Commission Rate — Percentage agreed upon in the listing contract (typically between 3-7%)

3. Typical Commission Rates in Alberta

Details: In Alberta, the typical total commission rate ranges from 3% to 7% of the sale price, usually split between the buyer's and seller's agents. The exact rate is negotiable between the seller and their realtor.

4. Using the Calculator

Tips: Enter the property sale price in Canadian dollars and the agreed commission rate percentage. The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

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

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

Q3: Are there fixed-fee alternatives?
A: Some realtors offer flat-fee services, but most work on a percentage-based commission model.

Q4: Does GST apply to realtor commissions?
A: Yes, GST (5%) applies to realtor commissions in Alberta and is added to the calculated commission amount.

Q5: How is commission split between agents?
A: The total commission is typically split 50/50 between the listing and buying agents, but this can vary.