1. What is Real Estate Commission?

Real estate 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 and is split between the buyer's and seller's agents.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• Sale Price — The final selling price of the property in CAD
• Commission Rate — The agreed percentage rate (typically between 3-7% in Edmonton)

3. Typical Commission Rates in Edmonton

Details: In Edmonton, the total commission is typically 7% on the first $100,000 and 3% on the balance, though rates are negotiable. This calculator uses a flat rate for simplicity.

4. Using This Calculator

Tips: Enter the property sale price in CAD and the commission rate as a percentage (e.g., 5 for 5%). The calculator will show the total commission amount.

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 brokers.

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

Q3: What's included in the commission?
A: The commission covers the services of both the listing and buying agents, marketing costs, and brokerage fees.

Q4: Can I sell without paying commission?
A: Yes, through "For Sale By Owner" (FSBO), but you won't have professional representation or MLS listing.

Q5: How is commission split between agents?
A: Typically 50/50 between listing and buying agents, but this can vary based on agreements.