1. What is Real Estate Commission?

Real estate commission is the fee paid to realtors for their services in facilitating a property sale. In Alberta, this is typically a percentage of the final sale price and is negotiated between the seller and their realtor.

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 between seller and realtor

3. Alberta Commission Rates

Typical Rates: In Alberta, commission rates typically range between 3-7% of the sale price, with the average being around 5-6% for the first $100,000 and 3% for the remaining balance.

4. Using the Calculator

Instructions: Enter the property sale price in Canadian dollars and the agreed commission rate percentage. The calculator will show both the commission amount and the net amount the seller will receive.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates fixed in Alberta?
A: No, commission rates are negotiable between the seller and realtor. There are no standard rates set by law.

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

Q3: Are commissions subject to GST?
A: Yes, in Alberta real estate commissions are subject to 5% GST.

Q4: Can I negotiate commission rates?
A: Yes, commission rates are always negotiable. Many factors can affect the rate including property value and market conditions.

Q5: What's included in the commission?
A: The commission typically covers marketing costs, professional photography, open houses, and the realtor's time and expertise throughout the selling process.