Calgary Real Estate Commissions - Who pays and how much?
This 7 and 3 table shows you what we see in Calgary on most listings. However, it is against the law to fix commissions at set rates. Commissions are negotiable. 7% on the first $100,000 of the sale price plus 3% on the balance of the sale price is what the table below is based on. Whatever the seller and the listing agent agree to for commissions becomes part of the total sale price listed on the MLS® system. The seller's agent and the seller then usually offer a buyer's Realtor® 3.5% on the first $100,000 and 1.5% on the balance of the sale price if they have a buyer for the property. So yes the commissions may seem high and if it was going to only one Realtor®, I would agree. Realtors® generally split the commission whatever it may be and like everyone else that gets a paycheck is required to pay taxes and other expenses.
Every home listed on MLS® that has sold or is for sale has the commission component built into the price. To further put some perspective on what Realtors earn, there are over 5,700 Licenced Realtors registered with the Calgary Real Estate Board fighting over less than a couple of thousand deals most months. It's a job at the end of the day which for Realtors® is not 9 to 5 Mon to Fri with a few weeks vacation and a pension!
It's a good thing I enjoy helping people because if I was in this for the money I would have moved on long ago!
| Sold Price | 7% | 3% | Total | GST | Total | Seller Net |
|---|---|---|---|---|---|---|
| $ 300,000 | $7,000 | $ 6,000 | $13,000 | $650 | $13,650 | $ 286,350 |
| $ 350,000 | $7,000 | $ 7,500 | $14,500 | $725 | $15,225 | $ 334,775 |
| $ 400,000 | $7,000 | $ 9,000 | $16,000 | $800 | $16,800 | $ 383,200 |
| $ 450,000 | $7,000 | $ 10,500 | $17,500 | $875 | $18,375 | $ 431,625 |
| $ 500,000 | $7,000 | $ 12,000 | $19,000 | $950 | $19,950 | $ 480,050 |
| $ 550,000 | $7,000 | $ 13,500 | $20,500 | $1,025 | $21,525 | $ 528,475 |
| $ 600,000 | $7,000 | $ 15,000 | $22,000 | $1,100 | $23,100 | $ 576,900 |
| $ 650,000 | $7,000 | $ 16,500 | $23,500 | $1,175 | $24,675 | $ 625,325 |
| $ 700,000 | $7,000 | $ 18,000 | $25,000 | $1,250 | $26,250 | $ 673,750 |
| $ 800,000 | $7,000 | $ 21,000 | $28,000 | $1,400 | $29,400 | $ 770,600 |
| $ 900,000 | $7,000 | $ 24,000 | $31,000 | $1,550 | $32,550 | $ 867,450 |
| $ 1,000,000 | $7,000 | $ 27,000 | $34,000 | $1,700 | $35,700 | $ 964,300 |
| $ 1,100,000 | $7,000 | $ 30,000 | $37,000 | $1,850 | $38,850 | $ 1,061,150 |
| $ 1,200,000 | $7,000 | $ 33,000 | $40,000 | $2,000 | $42,000 | $ 1,158,000 |
| $ 1,300,000 | $7,000 | $ 36,000 | $43,000 | $2,150 | $45,150 | $ 1,254,850 |
| $ 1,400,000 | $7,000 | $ 39,000 | $46,000 | $2,300 | $48,300 | $ 1,351,700 |
| $ 1,500,000 | $7,000 | $ 42,000 | $49,000 | $2,450 | $51,450 | $ 1,448,550 |
| $ 1,600,000 | $7,000 | $ 45,000 | $52,000 | $2,600 | $54,600 | $ 1,545,400 |