1. What is Real Estate Commission?

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

2. How Commission is Calculated

The commission is calculated using the formula:

Where:

• Sale Price — The final selling price of the property in CAD
• Commission Rate — The agreed percentage rate between client and agent

3. Typical Commission Rates in Alberta

Details: In Alberta, standard commission rates typically range between 3% to 7% of the sale price, with the average being around 5%. The rate is negotiable and may vary based on:

• Property type and value
• Market conditions
• Services provided by the agent
• Whether it's a full-service or limited-service brokerage

4. Using the Calculator

Tips: Enter the sale price in Canadian dollars and the commission rate as a percentage (without the % sign). For example, for 5% commission, enter "5".

5. Frequently Asked Questions (FAQ)

Q1: Who pays the real estate commission in Alberta?
A: Typically, the seller pays the commission, which is then split between the listing and buying agents.

Q2: Are commission rates fixed in Alberta?
A: No, commission rates are negotiable between the client and real estate professional.

Q3: Is GST charged on real estate commissions in Alberta?
A: Yes, GST (5%) is applicable on real estate commissions in Alberta.

Q4: Can I negotiate a lower commission rate?
A: Yes, commission rates are always negotiable. Some agents may offer lower rates for higher-value properties or repeat clients.

Q5: What services are included in the commission?
A: Services typically include marketing, showings, negotiations, paperwork handling, and professional advice throughout the transaction.