How Much Are Calgary Realtor® Fees? (2024)

Free REALTOR® Commission Calculator

How Much Are Calgary Realtor® Fees? (1)This is your quick guide and calculator for Calgary REALTOR® fees and commissions. One of the most common questions a real estate agent receives is "what are your fees?". Rightfully so because selling your home is a big decision and hiring the right REALTOR® with a clear fee structure is important.

Unfortunately, the fee structure and commissions in the real estate industry can lack clarity and sellers are oftentimes left confused as to how the fee structure works, who pays, and when.

When hiring a REALTOR®, you are pairing with a service provider who is here to do a number of tasks including, but not limited to, marketing your property, negotiating on your behalf, simplifying the process, and helping you make a smooth transition to your new place. For the purpose of this article, we will focus primarily on the financial side of buying or selling a home in our city.

*Note there is no set or standard fee structures in Alberta, and this information is to be used solely for reference purposes. Depending on your real estate team, agent, or brokerage, the fee structure and service offering can vary.

Often times, REALTORS® aren't necessarily thought of as business owners and providers, so the fee discussion can be strained. It is vital that everyone has a clear understanding of the fees and where the commissions (can) go.

Think to the last time you were at the grocery store looking at two different loaves of bread. Let's say that you have narrowed your selection down to two seemingly identical brands. Everything about these items appears to be the same:the number of slices, amount of flower, everything. The one difference is one is priced at $5 and the next one is $3. All things being the same, 9 out of 10 shoppers are going to select the $3 bread. This is the value-based argument. If the value is the exact same, then the consumer is likely going to select the lowest priced option. Simple!

Now, let's pretend you look more closely and the $5 bread is actually double the size, is loaded with fibre, has substantially better nutritional facts, and is freshly baked that day. On closer inspection, the $3 bread is squished, loaded with sugar, and is 1 day away from expiry. Now, which one do you choose? This is the perfect way to look at REALTOR® fees in Calgary and area. The value of the service needs to be there. There needs to be some level of a return that is important to you as the customer. There isn't one way that is right and one way that is wrong, there are just different structures, with different offerings, leading to potentially different results.

Your Calgary REALTOR® should be able to fully explain their fees and show you how they achieve the result that you are looking for. This needs to be an honest and transparent discussion so everyone is on the same page. Never rush over the fee section of your meeting with your REALTOR®.

Ask One Of Our REALTORS® Today

Calgary REALTOR® Fees Explained

BUYER'S REALTOR COMMISSIONHow Much Are Calgary Realtor® Fees? (2)

In most cases, the seller will compensate both the listing REALTOR® and the buyer's REALTOR®. This seems simple but it is far from it. Of course, it is up to the seller if they wish to provide compensation (and how much) to the buyer's REALTOR®. In most cases, sellers choose to offer the general going rate to a buyer's REALTOR® to help incentivize their sale. In no way should an agent not present or show your home because there is a reduction in fees being offered. Not only is this not ethical, but it's also not necessary.

In Calgary, Alberta, we have agreements where the buyer's agent enters into a contract with their buyer. In this agreement, their fee is stipulated. If the compensation provided is not the same as the amount as the buyer's REALTOR® is stating as their fee, the buyer can make up the difference (if decided) or potentially their full fee can be requested from the seller.

On first glance, most buyers are concerned about potentially needing to compensate their agent, however, a seller offering commission has this amount wrapped into the price on MLS. For example, let's say there are two sellers, both listed at $500,000. Listing 1 is offering $9,500 to a buyer's REALTOR® and listing 2 is offering nothing. If that is the case, then (theoretically) the buyer should be able to purchase listing 2 at a discount because the first listing has commission wrapped in while the second one does not. For example, if the buyer purchases at a $9,500 discount and compensates their agent directly, then you are at net zero.

This conversation should be had between the buyer and the buyer's agent to avoid any confusion as you move through this exciting process.

If you are the buyer, your REALTOR® should be providing enough value to you in order to be worth their commission, because either way, you are indirectly or directly compensating your agent.

It is important to note that fees are typically based on a percentage of the final sale price of a property. As the price goes up, so do fees. On first glance, you might say, "wait a minute, doesn't that mean my REALTOR® will receive more if I pay more?" Technically yes, but this amount is so negligible that it is much more valuable for the REALTOR® to create a bond/client for life with the buyer than it is to make an extra couple of bucks on a transaction. REALTORS® should be running their practice as a business and the lifetime value of a trusted client is exponentially more valuable than a few extra dollars on a transaction. That is why as a buyer, your agent is here to negotiate diligently on your behalf.

Discuss with your REALTOR® how they plan on helping you purchase a home and ask them what services are provided. In today's world, MLS makes finding homes fairly straightforward, so beyond the MLS system, how is your agent going to provide the value needed for a smooth transaction?

Ask One Of Our REALTORS® Today

SELLER'S REALTOR® COMMISSION

Since the buyer's REALTOR® is usually compensated by the seller, commissions aren't usually at the forefront of a buyer's mind throughout the process. On the other hand, sellers are very concerned about REALTOR® fees. That is because, in most cases, the seller is paying both their agent's fee as well as the buyer's agent's fee.

How this works is an amount is agreed to by the seller and their REALTOR®. This amount is stipulated in the listing agreement. The agreement should go into detail about the amount of the fee that will be offered to the buyer's agent/brokerage. In most cases, this fee is taken off the proceeds of the sale so you rarely write an actual cheque for the amount. For example, if your home sells for $500,000 and you have a mortgage of $200,000, then you would be left with approximately $300,000. Here the $300,000 would be sent to you from your lawyer, minus any fees (REALTOR® fees included).

For amounts, fee structures are typically a percentage of the final sale price. As your sale price increases, so do fees. Therefore, naturally built into the system is motivation for both seller and listing REALTOR® to achieve the highest price. If you read through the buyer's section, you will see that for almost all REALTORS® it's much more valuable to overdeliver with their client given this is a relationship based business, so the swing in commissions during negotiations is usually negligible and the agents are both working hard in their client's best interest!

As you know fees can vary, however, in your search in Calgary and area you may commonly see a total commission of 7% on the first $100,000 and 3% on the balance of the sale price (plus GST).

GST is payable on commissions as it is a service, however, GST is not payable on a resale home as long as it is not new or substantially renovated.

You will hear this called a number of different terms, mostly, you will hear "7 and 3" (or 7%/3%), industry jargon for 7% on the first $100,000 and 3% on the balance of the sale price.

So, how does this work? If you sell your home for $500,000 then the amount would be $19,000. Again, this is a sliding scale, so if the sale price is $200,000 the amount would be $10,000. If your sale price is $1,500,000 the amount would be $49,000.

-- If you would like to find out what this amount is, feel free to use the calculator below.

Commission Calculator

How Much Are Calgary Realtor® Fees? (3)Let's take a deeper dive into where the commissions go. Since the seller is paying the fee, the conversation about how the fees work is very important.

Typically, half of this is offered to the buyer's brokerage (or REALTOR®). Therefore, if you split 7% on the first $100,000 and 3% on the balance of the sale price in half, you have the following (using a $500,000 sale price)

Seller's Side: 3.5% on the first $100,000 and 1.5% on the balance of the sale price ($9,500)

Buyer's Side: 3.5% on the first $100,000 and 1.5% on the balance of the sale price ($9,500)

Total:7% on the first $100,000 and 3% on the balance of the sale price ($19,000)

Note, in most cases, if your home does not sell, then commissions are not payable, so there is strong inherent motivation for your REALTOR® to sell your home. Both financially and because they would like to earn your business for life.

Please feel free to Ask One Of Our REALTORS® Todayif you have any questions about the math.

This is no small investment and it should be looked at as an investment. It's not just the cost of doing business - it should be a true and honest investment in order to lead to a return for the seller. Therefore, approaching a listing haphazardly is a mistake and choosing your professional wisely is crucial.

Now, where do those fees go? This is the million dollar question and the part where differentiation, marketing, and service all come into play.

One of the greatest misconceptions in real estate is that the $19,000 from a $500,000 sale goes right into the REALTOR's pocket and they go buy a few new pairs of shoes and a trip to Mexico. Although we can't speak for all REALTORS, the respected agents that we know do not do this at all.

We already know that half of the fee is off to the Buyer's Side (3.5%/1.5%), so going back to our example $9,500 is removed. That leaves $9,500 for the Seller's Side.

The real estate agent is a business owner, so just like when you buy a car, the sales associate does not receive the $25,000 for the car you purchased, your REALTOR® does not receive the $9,500 from your successful sale. The fees that REALTORS® are required to pay are substantial. All agents have to be part of a brokerage and pay fees in exchange for brokerage services, so the office will have a portion (there are many different structures with a combination of monthly fees and deal splits and fees). The licencing fees are quite substantial in real estate and REALTOR®s pay for their local board, provincial association(s), federal association(s), and insurance.

Now your REALTOR® needs to market your property like no other! They need to pay for a number of services to drive buyers to the property and differentiate the home in the market. In your agent's marketing plan, you may see professional measurements, professional photos, 3D tours, floor plans, videos, graphic design, staging services, online advertisements, paid social media promotion, signage, marketing materials, and the list goes on. This is almost always the full responsibility of the REALTOR® or real estate team. These costs can be quiet high with agents spending upwards of around $2,000-$4,000 (approximate and usually dependent on property price) on marketing.

Wrap the fees into this plus other expenses and deductions such as gas, office rent and income tax, and the remainder is what is left for the REALTOR®. Therefore, a chunk of the $9,500 can be used up quite quickly.

How about if the listing does not sell? Especially in a tough market this is quite common. You can imagine the let down when the listing does not sell for both the seller and agent. The agent is still responsible for the investment on their part plus the time. However, the seller is in the same boat in these situations, they were not able to sell their home and this could be heavily impacting them.

The REALTOR® wants to get the seller the most money possible with the least amount of hassle for the seller. The marketing and services are meant to do just that: increase the final number a seller takes home even AFTER commissions and facilitate the transaction.

If you are saying "yeah, but what about the Buyer's Side that receives $9,500 and didn't need to pay for marketing?" We hear you! The Buyer's Side will usually have fewer expenses out of pocket, but time is the main investment (and not to forget gas and car expenses). Most agents do not want to rush buyers and want to make sure they are making prudent buying decisions. This can mean months if not years working with some buyers to find the right home. This can mean showing after showing on evenings and weekends. There are those that buy after 2 showings but also those that never buy after 60+ showings - in the end, it tends to even out!

Conclusion

REALTOR® fees are not the most straightforward investment that a seller or buyer will make and they are not a small amount. That is why understanding the fees and knowing how the structure works is crucial for both buyer and seller. Fees should be fair and honest, furthermore, your REALTOR® is there to walk you through how fees work and they need to present how there is value in their fees. Just like the $3 bread or $5 bread, fees are value based and the consumer should ultimately end up ahead with the help of a top agent.

How Much Are Calgary Realtor® Fees? (2024)

FAQs

What is a Realtor fee in Calgary? ›

In Alberta, the typical combined real estate commission or fees of both the buyer and seller agents is 7% for the first $100K of home's price and 3% of the remaining balance above $100K. It is usually split 50/50 between the buyer's and seller's agents.

What percentage do most realtors charge? ›

Nowadays, real estate commissions can be negotiated, and they typically run about 5 percent to 6 percent of a home's sale price. The exact terms of an agent's commission vary from sale to sale, and can depend on the region and which firm they work for.

Are Realtor fees negotiable in Alberta? ›

There is no standard commission for real estate or mortgage brokerage services in Alberta. Commissions to licensees are negotiable.

How do you get around Realtor fees? ›

How to Avoid Realtor Fees
  1. Negotiate Your Realtor's Fee. The phrase “everything is negotiable” applies to real estate more than any other market. ...
  2. Sell Through the Same Realtor You Buy Through. ...
  3. Shop for the Best Deal. ...
  4. Use Third-party Sellers and a Flat-rate MLS Listing Service. ...
  5. Use a Discount Broker.
10 Oct 2022

Are Realtor fees negotiable in Canada? ›

Real estate commission fees are negotiable, depending on the property and the market. Keep in mind that some agents will agree to reduce their fees right upfront. Others will not lower their fees because of the services they offer.

Is 1% a good estate agent fee? ›

You should be suspicious of estate agents charging less than 1% – there's usually a reason they're cheap. You should always choose no sale, no fee – estate agents only sell about 50% of properties on their books, so don't flip a coin on such a significant spend.

Can you haggle estate agents fees? ›

If you are not happy paying this in fees, you are absolutely within your rights to negotiate them. And on the whole, most agents are prepared to be flexible. But, before you broach the subject, work out how much you would like to pay so you have a figure in mind. Then, let the estate agent come and value your property.

What is the lowest commission a realtor will take? ›

What Is the Lowest Commission a Realtor Will Take? Typically, real estate agents charge a 3% commission, which adds up to 6% total commission for the buyer's and seller's agents. However, you can find low commission realtors who charge as little as 1%.

How much do top 1% Realtors make? ›

Top producers earn around $112,610 a year to start, according to the BLS. 1 Mega-stars could earn $500,000 per year and up.

What is the most common commission for a realtor? ›

📊 The data: We surveyed agents across the country, and found the average real estate commission cost to be 5.37%. Learn how to save thousands on realtor fees!

What percentage do most Realtors get for selling a house? ›

Real estate agents make a commission on each home they successfully sell. That commission is generally around 5-6% of the sales price. But one agent won't necessarily pocket the entire 5-6%. Real estate agent commissions are often split 50/50 between the seller's agent (or “listing agent”) and the buyer's agent.

How much do realtors make in Alberta? ›

Source
Wages*Low (5th percentile)Average
Starting$19.23$27.19
Overall$23.08$37.87
Top$23.08$58.25

What percentage do most realtors charge in Canada? ›

Average Real Estate Commission in Canada

The average real estate agent commission ranges between 3% and 7% depending on the type of property. Typically, sellers can expect to pay around 5% fixed percentage commission on the sale of a residential real estate, although this number can vary depending on many factors.

How much are lawyer fees when buying a house Alberta? ›

In Alberta, a real estate lawyer's fee typically ranges from $600 to $1200 (plus GST), while disbursements might total $400 or $500. All in all, you should be budgeting between $1500 to $1700. Title insurance costs vary depending on the property value and insurance provider.

Do estate agents charge if you pull out? ›

A If you withdraw from a sale, it is normal to be charged to cover the costs – such as advertising – that an agent has already incurred. And it is also normal to have to pay some or all of the estate agent's commission but only if the contract you signed contained a “ready, willing and able purchaser” clause.

How do you negotiate commissions? ›

Jump to a negotiating tip
  1. Evaluate your negotiating leverage.
  2. Find your area's average commission rate.
  3. Shop around for the best value.
  4. Make your house easier to sell.
  5. Create value for the agent.
  6. Offer a full buyer's agent fee.
  7. Work with an up-and-comer.
  8. Sell and buy with the same agent.
17 Oct 2022

Why do I have to pay buyers agent commission? ›

Why? Because it's part of the sale price. If the seller did not sign an agreement to pay the commission, the sale price might decline. Whether you're a buyer or a seller, the listing price is not the only number you should consider.

Do buyers pay realtor fees Canada? ›

In Canada, realtors charge between 3-7% of the final selling price, which is agreed upon by the seller and seller's agent when the home is listed. This amount will then be split between the buyers and the seller's agents.

How are realtor fees calculated in Canada? ›

It is usually calculated as a percentage of the selling price of the property. In Ontario, the standard real estate agent commission is 5% of the property price plus HST, but in practice, the commission can range anywhere from 3.5% to 5%.

What percentage do most realtors charge in BC? ›

In B.C., buyer and seller real estate agents charge a graduated commission based on the transaction value that usually ranges between 3% to 4% for the first $100,000 of a property's price and between 1% to 2% for the remaining total.

Can I sell my house without an estate agent? ›

If you wish to sell your property you can find a buyer yourself or use an estate agent. Before making a decision you should consider how much each method would cost and how much time you have available.

How much deposit should I pay the agent? ›

The deposit amount is generally ten percent (10%) of the purchase price. The amount for the deposit can usually be negotiated between the vendor and purchaser and may be reduced to five percent (5%). A Property Lawyer or Sydney Conveyancer can assist you with negotiating the deposit amount.

Is it worth using 2 estate agents? ›

The simple answer is yes. The real question is why would you want to? Two agents are usually employed either because one agent has failed to secure a sale or because another promises you they have a buyer waiting. Sometimes this is true.

Should you tell estate agents your budget? ›

Should I be upfront about what I can afford? “No. Keeping your real budget limit under wraps can put you in a stronger position. But do let the estate agent know that you're interested to see any properties that fit your criteria, even if they cost a bit more than you've said you're willing to pay.

Why do agents charge so much? ›

They charge a lot because it takes work and money to market, it is hard to get licensed and become a real estate agent, they have to pay for dues and insurance and real estate agents usually have to split their commissions with their broker.

Do estate agents charge up front? ›

Estate agents are required by law to tell you what is included as part of their fee and are normally due upon completion (when the property has been sold and contracts exchanged). However, some estate agents may require you to pay upfront, the estate agency agreement will stipulate when fees will need to be paid.

Why is a good realtor worth the money you pay in commission? ›

A real estate commission covers all the work that goes into buying and selling property. Trust us, a great agent does a lot to help you buy or sell a house. A seller's agent shows you how to stage your home for buyers and—since they know what similar homes in your area are selling for—they help you price it right.

How do you negotiate with agents? ›

Sealing the deal: 6 tips for negotiating with real estate agents
  1. Do your homework. ...
  2. Make sure you have pre-approval. ...
  3. Know your bargaining strength. ...
  4. Know your limit. ...
  5. Don't appear too keen. ...
  6. Consider one final negotiation.
27 Feb 2020

Who is the highest paid realtor? ›

Caballero broke his record, which he set in 2018 selling 3,496 new homes in the Dallas-Ft. Worth area, worth $1.384 billion. Ben Caballero, a current Guinness World Record title holder and No.

What type of realtor makes the most money? ›

Real Estate Broker

A career as a real estate broker is one of the highest paying and lucrative professions in the real estate industry. On average, experienced brokers take home a six-figure pay. You can only achieve this number once you get a significant amount of good reputation.

Can you make millions being a Realtor? ›

Star real estate agents in the state of California can make millions annually. These agents need to average at least $50 million in sales annually with an average commission of 2%.

What percent commission should I get? ›

However, the typical commission rate for sales starts at about 5%, which usually applies to sales teams that have a generous base pay. The average in sales, though, is usually between 20-30%. What is a good commission rate for sales? Some companies offer as much as 40-50% commission.

How much does a Realtor make a year? ›

According to figures from unitedpropertyconnect.com, UK residential estate agents make an average salary of £41,392, that's much higher than the UK average salary. With years of experience under their belts, successful and experienced agents can earn anything between £50,000- £100,000.

Why do real estate agents make so much money? ›

Most real estate agents make money through commissions that are based on a percentage of a property's selling price, (Commission can also be flat fees, but that is much less common.) Agents work under real estate brokers, and the commissions are paid directly to the brokers.

What Realtor sells the most houses? ›

But no real estate agent has ever entered Guinness' international pantheon, until now. Meet Ben Caballero, a Realtor® and broker in Addison, TX, who was just recognized as achieving “the most annual home sales transactions through MLS by an individual sell-side real estate agent.”

What percentage of millionaires are Realtors? ›

Some of the most successful entrepreneurs in the world have built their wealth through real estate. In fact, it's estimated that 90% of all millionaires invest in some form of real estate.

Do most people make money selling their house? ›

1: Selling your home. In most areas of the country, you'll probably make a substantial profit on your house if you sell today because of its increased value. You can thank high housing demand, low supply, and low mortgage rates for the gift you received.

What is Remax commission split? ›

RE/MAX lets agents choose between a 95/5 commission split, plus a monthly desk fee, and an 80/20, 70/30, or 60/40 split with no monthly desk fee. However, there might be differences among different RE/MAX offices.

Is there GST on realtor commissions? ›

Taxes on Real Estate Commission (QST and GST)

In Quebec, you are required to pay Quebec sales tax on real estate commission, which includes QST (provincial) and GST (federal). The Quebec Sales Tax (QST) rate is 9.975% and the Goods and Services Tax (GST) is 5%, which in total equals 14.975%.

How much do buyers make in Alberta? ›

Source
Wages*Low (5th percentile)Average
Starting$15.00$22.10
Overall$16.00$25.97
Top$19.00$33.33

Do buyers pay realtor fees Alberta? ›

Typically, only the seller pays realtor fees, and the commissions are split between the seller's and buyer's realtors. Realtor fees in Alberta vary, and can be dependent on negotiations between the seller of a house and the realtor representing the seller's home.

What is the average salary of a realtor in Canada? ›

The average realtor salary in Canada is $88,750 per year or $45.51 per hour. Entry-level positions start at $62,400 per year, while most experienced workers make up to $150,000 per year.

How much does the average Canadian realtor make? ›

The average real estate agent salary in Canada is $100,000 per year or $51.28 per hour. Entry-level positions start at $75,000 per year, while most experienced workers make up to $120,000 per year.

Are realtor fees negotiable in Alberta? ›

There is no standard commission for real estate or mortgage brokerage services in Alberta. Commissions to licensees are negotiable.

Can you negotiate realtor fees in Alberta? ›

Yes! Like most other service fees, you can negotiate the commission with your agent. The commission makes up the largest portion of your selling costs, so it always makes sense to check and negotiate the commission of different real estate agents when selling a property.

Do you pay GST when buying a house in Alberta? ›

Goods & Services Tax (GST).

(5% of purchase price) If you're buying a new home, you will be charged GST. This is usually included in the contract price. But if the new home you're purchasing is less than $450,000 and will be your primary residence, you may qualify for a partial rebate.

What is a normal broker fee? ›

Realtors and real estate brokers typically charge around 5% to 6% of the selling price of a house. 2 This is often split between the seller's agent and the buyer's agent. Some discount real estate brokerages may charge a lower rate or instead offer a fixed-fee service.

What is an estate agents selling fee? ›

Overwhelmingly, estate agents charge a fee based on a percentage of the price your home sells for. This can be anywhere between 0.75% and 3.0%+VAT depending on the type of contract you opt for with your estate agent.

Do buyers pay Realtor fees Canada? ›

In Canada, realtors charge between 3-7% of the final selling price, which is agreed upon by the seller and seller's agent when the home is listed. This amount will then be split between the buyers and the seller's agents.

How much do top 1% realtors make? ›

Top producers earn around $112,610 a year to start, according to the BLS. 1 Mega-stars could earn $500,000 per year and up.

Which broker has less fees? ›

Robinhood and Webull are the lowest commission brokerage accounts across stocks, ETFs, options, and cryptocurrencies -- they don't charge commissions.

Do all brokers charge a fee? ›

Commissions and fees aren't universal—they vary from firm to firm. Keep your expenses down by investing with a no-fee brokerage firm or trading house. Robo-advisors use algorithms to manage portfolios, so they may come with low or no fees.

How do you calculate brokerage fees? ›

Brokerage charge is 0.05% of the total turnover. Suppose the stock you buy costs Rs 100. Then the brokerage charge is 0.05% of Rs 100, which is Rs 0.05. Then, the total brokerage charge on the trading is Rs 0.05+ 0.05, which is Rs 0.10 (for buying and selling).

Do estate agents charge if no sale? ›

Most local estate agents offer a no sale no fee service. They will take care of everything including floor plans, photography, get your property listed on online portals such as Rightmove and Zoopla, conduct viewings and handle sale negotiations all without asking for any money from you.

Do buyers pay estate agent fees? ›

Who pays the fee – the buyer or the seller? The seller pays the estate agent's fees, even though agents theoretically 'work' for buyers and sellers. With online agencies, some fees are payable in advance, or sometimes within 10 months of the property going on sale.

How are Realtor fees calculated in Canada? ›

It is usually calculated as a percentage of the selling price of the property. In Ontario, the standard real estate agent commission is 5% of the property price plus HST, but in practice, the commission can range anywhere from 3.5% to 5%.

How much does an average Realtor make in BC? ›

Real Estate Agent Salary British Columbia
LowMedium
British Columbia$32,011$54,354
Vancouver (Lower Mainland-Southwest)$32,011$55,549
Vancouver Island$32,011$56,567
Thompson–Okanagan$32,011$46,621
2 more rows

What fees are associated with buying a house in Canada? ›

Home buying costs

You usually pay these costs by the time the sale is completed. Examples include home inspection fees, legal fees, property tax adjustments and title insurance. Be prepared to spend between 1.5% and 4% of the home's purchase price on these costs.

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