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, commissions are typically percentage-based and negotiated between the client and realtor.

2. How Commission is Calculated in Alberta

The standard commission structure in Alberta is:

Example: For a $500,000 home:

• 7% of first $100,000 = $7,000
• 3% of remaining $400,000 = $12,000
• Total Commission = $19,000

3. Standard vs Custom Rates

Standard Rate: The 7% + 3% structure is common but not mandatory. Realtors may offer different rates based on market conditions, property value, or services provided.

Custom Rate: You can negotiate a flat percentage rate with your realtor. This calculator allows you to compute commissions for any agreed-upon rate.

4. Using the Calculator

Steps:

1. Enter the property sale price in CAD
2. Select "Standard Alberta" for typical 7% + 3% calculation
3. OR select "Custom Rate" and enter your agreed percentage
4. Click "Calculate" to see total commission amount

5. Frequently Asked Questions (FAQ)

Q1: Is commission split between buyer and seller agents?
A: Yes, typically the total commission is split between the listing and buying agents, often evenly.

Q2: Are commissions negotiable in Alberta?
A: Yes, all commission rates are negotiable between you and your realtor.

Q3: Who pays the commission in a sale?
A: Normally the seller pays the commission, which is deducted from the sale proceeds.

Q4: Are there additional fees beyond commission?
A: There may be administrative fees or other charges - review your agreement carefully.

Q5: How does this compare to other provinces?
A: Alberta's structure is unique. Other provinces may use different percentage structures or flat fees.