1. What is Realtor Commission?

Realtor 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 negotiable between the client and realtor.

2. How Commission is Calculated

The commission is calculated using this simple formula:

Where:

• \( Sale\ Price \) — Final selling price of the property (in CAD)
• \( Commission\ Rate \) — Agreed percentage between client and realtor

Example: For a $500,000 home with 5% commission rate, the total commission would be $25,000.

3. Typical Commission Rates in Alberta

Details: In Alberta, commission rates typically range between 3-7% of the sale price, with the average being around 5%. This is usually split between the buyer's and seller's agents.

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: Is commission negotiable in Alberta?
A: Yes, commission rates are always negotiable between the client and realtor.

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

Q3: Are there standard commission rates?
A: No, rates vary by brokerage, property type, and market conditions. Always discuss rates before signing a listing agreement.

Q4: Does commission include GST?
A: No, GST of 5% is added to the commission amount in Alberta.

Q5: Can I sell without paying commission?
A: Yes, through "For Sale By Owner" (FSBO), but you'll handle all aspects of the sale yourself.