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 and British Columbia, this is typically a percentage of the final sale price of the property.

2. How Commission is Calculated

The commission is calculated using this simple formula:

Where:

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

Example: For a $500,000 home with 5% commission, the calculation would be $500,000 × 0.05 = $25,000.

3. Typical Commission Rates in Alberta & BC

Details: While commission rates are negotiable, typical rates range from 3% to 7% in Alberta and British Columbia, with the average around 5%. The rate may vary based on property type, market conditions, and services provided.

4. Using the Calculator

Tips: Enter the sale price in Canadian dollars and the commission rate as a percentage (without the % sign). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Who pays the realtor commission?
A: Typically the seller pays the commission, which is then split between the listing agent and buyer's agent.

Q2: Is commission negotiable?
A: Yes, commission rates are always negotiable between the seller and their realtor.

Q3: Are there additional fees beyond commission?
A: There may be additional closing costs, but these are separate from the realtor commission.

Q4: 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.

Q5: Do all realtors charge the same rate?
A: No, commission rates can vary between realtors and brokerages based on services offered and market conditions.