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Commission Formula:
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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 and is negotiated between the client and the realtor.
The standard commission calculation is:
Where:
Note: The total commission is often split between the buying and selling agents, and may include GST.
Details: In Alberta, the typical realtor commission rate ranges from 3% to 7% of the sale price, with most transactions falling between 4-5%. Rates are negotiable and may vary based on:
Instructions: Enter the sale price of the property in Canadian dollars and the agreed commission rate as a percentage. The calculator will compute the total commission amount.
Example: For a $500,000 home with a 5% commission rate, the calculation would be: $500,000 × 0.05 = $25,000 commission.
Q1: Is commission negotiable in Alberta?
A: Yes, commission rates are always negotiable between the client and realtor.
Q2: Who pays the realtor commission?
A: Typically the seller pays the commission, which is then split between the listing and buying agents.
Q3: Are there additional fees beyond commission?
A: There may be additional fees for GST, administrative costs, or special services - always review your agreement.
Q4: What's the difference between gross and net commission?
A: Gross is the total amount, while net is what the agent receives after brokerage splits and expenses.
Q5: Do commission rates vary by city in Alberta?
A: Rates are generally consistent across Alberta, though some luxury markets or rural areas may have different structures.