Who Pays The Real Estate Commission & Fees?

Follow the money and you get your answer. Lots of Realtors tell you the Seller pays the fees. Which is kind of true. But where do the sellers get the money to pay the fees and commissions? From the Buyer!


That's correct the Buyer pays 100% of all fees and commissions to the home seller as part of the total purchase price of the home.


Once the seller's lawyer has the money, the lawyer divides it up between the seller, the lawyer and the real estate brokerages.


In Calgary, it's very common to see listing agents charge home sellers 7% on the first $100,000 and 3% on the balance of the sale price. Then the listing agents offers 50% of that to a Buyers agent that brings a buyer into the deal.


Here's an example on a $650,000 sale of a home.


$23,500 plus GST would come off the top.


Leaving the homeowner with $626,500.


The Real Estate Commission and Fees would be split between the buyers Realtor and the sellers Realtor - $11,750ea.


The sellers Realtor would deduct all the marketing expenses and broker fees from their $11,750 and pay tax on whatever is left.


The buyers Realtor has no marketing expenses but has broker fees and taxes to pay on their $11,750.


Do You Need a Realtor To Buy or Sell A Home in Calgary? I say no, not really. All the information you need is on the internet.


What's not on the internet for you is My Real Estate & Business Experience!


Everything about everything is now on the internet. What cannot be put on the internet is the hands-on actual experience a person gets through years of doing. Doing and Learning. Making Mistakes and Learning. Doing it Better and Better and Learning.

  

The value I bring is My Experience. Whenever I have a gut feeling something is not quite right, I'm rarely wrong and saving my clients from an unpleasant situation.

I'll make sure you don't get hit by a train - the internet can't do that!

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How's the Market?

The answer is "it depends." Are you buying or selling? What are you buying or selling? Where are you buying or selling?

If you are buying only, lucky you, it's a buyers market.

If your buying and selling, it's relative, what you lose selling you should make buying.

If you are selling only, beware of lots of other sellers, fewer buyers and lower prices.

If you are looking for fix and flip opportunities, you have lots of competition, so you better be ready to write offers quickly with few conditions.

If you are looking for rental properties, check out Rentfaster.ca to study the home rental market. Find the obvious property types and the income they generate. Then look at properties to buy that can at least break even after paying the mortgage, taxes and insurance.

Is it a good time to buy or sell? Yes!

But only if that's what works for you. Everybody is different. Home ownership isn't for everyone. It costs more than renting but allows freedom and has restrictions not found as a homeowner. And you could do both. I know many landlords that are also tenants because they found properties that are really nice and really cheap.

We've done it all and continue to do it all.

Helping people sort through all the different options to find what best suits them is our specialty. We don't know your situation yet, but when we do, we can help you fill in the blanks that allows you to make the best real estate decision for you!

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Detached Foreclosures

25 Active Listings
17 Sold in the Past 30 Days
$224 Per Square Foot - Average Sold Price

Attached Foreclosures

42 Active Listings
15 Sold in the Past 30 Days
$209 Per Square Foot - Average Sold Price

Apartment Condo Foreclosures

48 Active Listings
12 Sold in the Past 30 Days
$233 Per Square Foot - Average Sold Price

Banks are not motivated sellers of foreclosed homes.

Foreclosure Supply is controlled by banks and mortgage companies. It is against the best interests of the banks and mortgage companies to increase the supply beyond the demand. If lenders flooded the market and drove down prices that action would damage the value of the mortgages they still hold on similar properties. It would take a major financial market meltdown before Canadian Banks and Canadian Mortgage Companies became forced sellers of real estate. A rare event, but never say never....


The Court of Queens Bench are not motivated sellers of pre-foreclosure homes.

The Court is working on behalf of the home-owner. The Court will turn the property over to the bank after all home-owner equity is used up. Penalties, interest on interest and legal fees add up quickly. At that point, the courts evict the former home-owner and legal title transfers to the bank.


Foreclosures that appear to be a good deal, in general, are priced appropriately for the condition they are in. The really bad ones offer at most an opportunity to build what's called Sweat Equity. That means you do the work required instead of paying a tradesperson. But you don't need to limit yourself to looking at just foreclosures. Sweat Equity opportunities can be found in the much larger pool of regular MLS® Listings.


Our VIP Home Finder System does the work for you. We set up a custom search based on your filters to weed out properties not matching so you get the newest and best property matches emailed to you automatically. Try it here.

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Calgary Off-Leash Dog Park searches are easy with the City of Calgary's website mapping tool powered by ESRI. Your furry best friend has endless opportunities to socialize all over the city. You search and find all the off-leash parks close to your house or your future house. Not everybody is a dog lover so this map of the dog parks is a useful tool to find communities to avoid as well. You can view the maps as plain maps or satellite aerial views. There are loads of features to make your Dog Park Search fun and user-friendly. Check It Out the next time you are looking for a dog park. Share this with your friends as well.

Calgary Dog Parks

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Detached Single Family Houses

3,005 Active Listings
646 Sold in the Past 30 Days
$329 Per Square Foot Average Sold Price

Townhouse and Row Houses

1,648 Active Listings
260 Sold in the Past 30 Days
$288 Per Square Foot Average Sold Price

Apartments and Condos

1,303 Active Listings
159 Sold in the Past 30 Days
$306 Per Square Foot Average Sold Price

Buyers Market Conditions persist across all property types and communities in the City of Calgary. As an oil price dependent local economy who's number 1 customer has just become the largest oil producer in the world, expect prices and supply to favor home buyers for the foreseeable future.


Looking for a home? Try our VIP Home Finder System>


Looking for Calgary Open Houses to Vist? Click Here

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Data supplied by CREB®’s MLS® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.