Questions People Ask About Calgary Alberta Realtor® Real Estate Fees and Commissions

Answers to Questions People Ask About Calgary Alberta Realtor® Real Estate Fees & Commissions

It is against the law to have fixed Realtor® Fees and Commissions in Calgary.

Real Estate Fees are negotiated between Calgary Home Sellers, Calgary Home Buyers, and Calgary Realtors®.

The selling price of any home on the Alberta MLS® System included the Real Estate Commissions plus GST. The fee could have been zero, or 1%, or 2%, or $2,500, or $8,550, or 7% on the first $100,000 and 3.5% on the balance of the sale price, or any other creative commission calculation you could imagine.

The point is there is no set fee for Real Estate Commissions in Calgary Alberta, Canada.

Remax, Century 21, Royale Lepage, CIR Realty, Exp Realty, Sotheby's, 1% Realty, 2% Realty, 3% Realty, and the hundreds of other Alberta Real Estate Companies are prohibited by law from fixing commissions rates.

The above companies and their Realtors® all want your business and will negotiate your Real Estate Commissions.

Calgary Home Buyers pay 100% of the Reator® Fees because it's included in the Home Selling Price. It's like the mark-up on any product you buy at a retail store.

Some Calgary Realtors® claim they won't negotiate commissions. There are Real Estate Trainers and Coaches that charge Realtors® thousands of dollars to learn how to "Protect Commissions." Talk to a few Reatlors® and you hear the same old scripts. How if they are not tough on commissions with you, they won't be tough on Calgary Buyers on the home price. Blah, Blah, Blah.....

The bottom line is All Realtor® Commissions in Calgary Alberta Canada are Negotiable.

You can get a 1% Commission deal from a Remax Realtor just as easily as from the company that calls itself 1% Realty. 2% Commissions are offered by Century 21 Realtors® just as often as from the company called 2% Realty.

Brand means nothing in Real Estate, Calgary Home Prices Rule Everything.

Feel free to contact me anytime you want the Truth About Calgary Alberta Real Estate Fees and Commissions.

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!

December 2020 Calgary Real Estate Newsletter

Avoiding the #1 Cause of Calgary Home Seller Stress

Do you know what causes the most common source of stress when selling your home? Is it scheduling buyer viewings? Is it the length of time it takes for your property to sell? Is it an offer that falls through?

Those things can, indeed, cause some worry! But, the number one source of stress is actually simple to avoid. It’s not understanding the home selling process. 

Even if you’re no stranger to moving, you should review the process involved in selling your current home before you list it. If you don’t, you might end up exposing yourself to anxiety that could have been easily avoided.

Say, for example, you’re concerned that your home has been listed for too long. It’s been a week and no good offers have come in. Well, if you knew, in advance, how long a home like yours typically takes to sell, then you probably would know not to worry.

It’s important that you start the process by understanding what to expect. What happens when your home is first listed? How are buyers scheduled to see your property? What happens when an offer comes in?

That’s why we will always review the selling process before you list and make sure all your questions are answered.

Window Treatment Ideas that Help Sell Your Home

If you’re selling your Calgary home in the near future, your window treatments – curtains, blinds, etc. – will often be included with the property. They are an important selling feature. So, when a prospective buyer views your home, looks at the front window with its gorgeous draperies, and says, “Wow!”, that’s a good thing.

If you’re thinking of upgrading your window treatments in preparation for selling, here are a few ideas:

• Buyers love to see vertical blinds on sliding patio doors. Installing these is a DIY-friendly project.

• You may have a window that, for whatever reason, doesn’t need a curtain or blind. That’s fine. But, if you want to dress it up, consider a nice-looking valance.

• If you have a window that looks dark, heavy or otherwise “over curtained”, strip it down.

• Removing an inner curtain, for example, can dramatically lighten up the window as well as the entire room.

• Replace any worn or stained curtains. There are many affordable, mid-quality curtains available that look terrific. Alternatively, try sending stained curtains to the cleaners.

Window coverings may seem minor when preparing your home for sale, but they make a difference in how your home looks overall.

Beware of “The Dip” When Setting Goals

If you’ve ever run a marathon or watched one, you’ve probably noticed that no one quits at the beginning. They don’t quit near the end either. If anything, they run faster! So, at what point are people most likely to drop out?

The middle.

The middle is the toughest part of any marathon or, indeed, anything major you want to accomplish. In his book, The Dip, author Seth Godin states that the middle is the point in any project or goal where failure is most likely.

Have you set a new year’s goal? If so, beware of the dip! 

How do you do that? Prepare for it.

If you want to lose weight, for example, you’ll be most enthusiastic, and get the most encouragement from friends and family in January. But, what happens in March? At that point, the initial burst of motivation and support will have likely waned. That’s when it becomes tough to keep going.

There are several things you can do to get through the dip. One is to celebrate milestones. When you’re halfway to your goal, tell your friends and family. Get some high fives! You can also remind yourself that your goal is important to you and renew your determination to achieve it.

So don’t give up in the middle. Keep pushing through. After all, when the end is in sight, it will be a wonderful sight to behold.

If You Are Thinking of Selling your Calgary home....

Here are our TOP 5 TIPS for a successful sale

1. Connect with a Full-Time Active Realtor®. A Calgary Realtor who has local, in-depth knowledge of the Community Market you are planning to list in.

2. With your Realtor®, create and follow a customized pre-listing plan which will include items such as decluttering, depersonalization and staging preparation;

3. Review a pricing analysis with your to determine the best position for your home within the local marketplace. A true professional will explain the strategy behind pricing recommendations; 

4. Release a perfect property presentation to the marketplace!!! This could include professional photography, drone images, video, 3D tour & floor plans.

5. Prepare for showings! I'd love to suggest a mini-vacation but, COVID so..if it is at all possible, stay with a friend or family member because living in a staged space is HARD. One of our best tips is to keep a GO BAG near the front door if leaving isn't an option. Make sure it is large enough to throw any last-minute items into just in case a potential Calgary Home Buyer requests a last-minute viewing.

Selling is stressful. The right Calgary Realtor is a stress reducer. We Offer Free Home Evaluations.

Need to Sell Your Calgary House Quickly? Here's What to Do

There are many different reasons why you might suddenly need to sell your home. It could be an unexpected work relocation, a change in family circumstances, or simply a desire to move.

Whatever the reason, selling a house quickly requires some fast action on your part. But that doesn't mean you need to get into panic mode. You can list and sell your property quickly while still enjoying the process!

The first thing you need to do is figure out how to make your home show its best. In addition to cleaning and decluttering, that might include getting any needed repairs done, sprucing up the place by painting and perhaps even doing some minor improvements.

How much you need to "stage" your property depends on many factors, including what conditions are like in the local Calgary Real Estate Market. For example, you may not need to make each room look like a page from a decorating magazine if you’re in a seller’s market.

So, before you start any work, talk to me about what needs to be done to make your home ready to be seen by Calgary Home Buyers.

The next thing you’ll need to consider is the listing price. Your listing price is especially important if you want to sell fast. No, you don't need to low-ball your listing to attract interested buyers — in fact, doing that might actually have the opposite effect. But you do need to price your property competitively.

In addition, it's smart to line up the resources you'll need, especially if you're also buying a new home. For example: get recommendations for a real estate lawyer, contractor, mortgage advisor, cleaning service, pet daycare, etc.

I’m well-connected in the local home industry, so I can recommend you to reputable professionals I know and trust.

A final tip: If you want to sell your Calgary houses quickly, you need to start the process now.

Give me a call to get the ball rolling.

We also Buy Calgary Homes For Cash.

What Is A Calgary Residential Real Property Report?

A Real Property Report for Calgary Residential Real Estate is a legal document that shows the property boundaries and anything on the property like homes, decks, garages, pools, sheds, etc.

It includes a visual scale drawing and remarks from the survey company;

Who needs a Real Property Report?

Homebuyers need to know what they are buying. Is the fence or garage on your property or your neighbours? Sellers are required by the Offer to Purchase contract to supply the buyers with a copy of the RPR;

How does a Real Property Report protect you?

A Real Property Report only protects you if you look at it and understand what you are buying along with the house. There could be problems on the RPR you do not want anything to do with. There could be a Utility Right of way from the gas company that prevents you from ever building a garage.

How does municipal compliance protect you?

There are a lot of garages that extend onto the City of Calgary’s property in back lanes. The City will charge you a fee for an encroachment agreement or tell you to move it. You need a Stamp of Compliance from the City to know what you are getting with the house purchase.

How long is a Real Property Report valid?

If there are no changes to the footprint or no bylaw changes, the RPR is good. When the City passed a new bylaw requiring window wells to be on the RPR, it created a huge headache for homeowners that had to get updated RPR’s before selling.

How can I get a Real Property Report updated?

There is not much difference in price between updates and new Real Property Reports in Calgary for some reason.

What is shown on your Real Property Report?

Legal address, lot dimensions, joining properties, easements, encroachments, utility right of ways, permit stamps, surveyor comments, etc.

How much does a Real Property Report cost?

You should be able to spend less than $1,000 on a Real Property Report. It is good to get a few quotes as there is a lot of companies competing for business.

The benefits of a Real Property Report

Problems can sometimes be resolved. Buyers know accurate locations and dimensions of buildings, improvements, rights-of-way, and encroachments relative to their property's boundaries. Financing sometimes requires verified survey information. Development and building permits will require a Real Property Report.

Where do you get more information regarding Real Property Reports for Calgary, Alberta?

Calgarians can start with the Alberta Land Surveyor’s Association. The ALSA website answers the above questions in greater detail. They also have the member companies listed for you to call and get some quotes.

You can also ask me or any other Realtor or a Real Estate Lawyer to refer to a good RPR company. We work with many and have a shortlist we can send you anytime.

Is it Time to Re-Shingle Your Worn Out Calgary Roof?

Don't wait until you decide to sell your home to have the shingles replaced. Do it when they need it.

In Alberta because of our location to the sun, shingles wear out unevenly. The south side goes first and the north side still has many years of life left.

Consider replacing the shingles on your Calgary house with thicker shingles on the sunny south side so that the entire roof ages evenly.

When the shingles wear out or become damaged, you need to have them replaced.

Unfortunately, it's not always easy to determine whether your shingles need replacement right away or whether you can hold off for another few years.

Assuming your home has the most common type of shingles — asphalt — here's what to look for:

• Corners upturned on some shingles.
• Missing shingles.
• Shingles lifting during high winds and not settling back into place (flat) within a day or two.
• Heavy accumulation of shingle debris (particles) in the gutters.
• Shingle bits and pieces found on the ground around your home.
• Spots on your roof that still look wet a day or two after a rainfall. (This could be a sign of water infiltration into the felt or even the roof deck.)

If you have any of these signs, be sure to have a roofing contractor take a closer look.

Before investing in a new roof, be sure to check with the retailer or contractor who supplied the original materials. Your shingles might still be under warranty.

Bottom line: Don't delay. You don't want to wait until you hear drip drip drip or decide to sell your house before taking action!

Most Roofing Companies in Calgary Offer Free Quotes - It's always best to get a minimum of 3 quotes from companies with a good track record. They expect you to get at least 3 new roof quotes and when you tell them they have competition for the job, you can get their best price upfront. 

Do not forget to tell the roofing company that you want stronger shingles on the south-facing surfaces so that the shingles over time will wear out evenly.

Make sure you understand the warranties being offered with the shingles. Is the warranty with the house or with you the buyer? When does it expire? How long has the company and the manufacturer been in business in Calgary? What references do they have? 

When the job is done file all paperwork where you can show it to potential new buyers if you do decide to sell your house. Scan all paperwork and file it away on one drive, google drive, dropbox or some other cloud storage service. Then you have two copies in the event you need it for a warranty claim or anything else.

Fact: Homes with well-kept shingles give home buyers a better overall impression of the condition of a home and how well it's been owned. And these homes generally sell quicker for more money than the home that just got listed today and needed shingles 2 years ago!

What Are the Benefits of Using a Calgary Realtor to Sell Your Home?

Selling your home can be stressful and time-consuming. An experienced Calgary Realtor like Jerry Charlton has the knowledge, skills, and connections to help you through the process every step of the way. Consider the following benefits of working with Jerry.  

Full-Time Professional Real Estate Agent

Jerry Charlton has the specialized knowledge, experience, training, marketing strategies, negotiation skills, and understanding of the workings of the current Calgary Real Estate Market to help guide you through the steps of the successful home selling process.

He will explain exactly what to expect. Jerry Charlton will make you aware of your rights and responsibilities. Work with you to strategize the best moves according to your own goals. Recommend other specialized professionals who will aid you in different stages of the process.

Best Price For Your Home:

Calgary Realtors like Jerry have their fingers on the pulse of the current real estate market and will know what comparable properties in your area are selling for. They have the resources and knowledge to establish the best asking price and to attract the highest selling price. With access to their company’s professional marketing resources and connections, they will ensure potential buyers are immediately made aware of your home and market the property to sell as quickly as possible and for the most money.

“Showcasing” Experience:

Jerry Charlton, Calgary Realtor knows the importance of a property’s first impression and the impact of a property’s “Curb Appeal” has on the rest of a potential Buyer’s experience of your home. We will offer you tips and information on how to get your home in the best-selling shape possible, to sell your property quickly and for top dollar.

Access to Qualified Calgary Home Buyers:

Jerry can save you time and effort by dealing only with qualified buyers. We have access to a pool of pre-screened and pre-qualified buyers who are serious about buying a home in most Calgary neighbourhoods. We work hard to develop this base of qualified buyers which will become an invaluable resource for you.

Real Estate Negotiation Skills:

Realtors serve many functions, but perhaps the most important is their role as primary negotiator on your behalf. Jerry Charlton realizes your goal is to sell your home as quickly as possible, and for the most money possible, and will work closely with you during the negotiation process to facilitate this goal. Jerry brings to the process the knowledge and skills to draw up legally binding contracts, to assist in negotiating offers and counteroffers, and to offer counsel and perspective as you work toward your selling goals.

Jerry Charlton Offers Free Calgary Home Evaluations

Calgary Home Sellers: Should You Sell First or Buy First?

If you are considering looking for a new house, and are a current home-owner, then chances are you're wondering what your strategy should be: do you wait to find the perfect new home before you put your current home on the market, or do you sell first and then look around? You have a few options. Use the following as a guide to explore what might be the best move for you

Sell First?

There are several benefits to selling your current house before searching for your next home. First, once you have sold your house, you will know precisely how much money you must work with. With a concrete price range, you will be able to narrow the pool of houses before you begin looking and negotiate accordingly. This will allow you to immediately make firm offers on houses that you are serious about purchasing. You can be first in line with an unconditional offer you know you can afford, and this will grant even further negotiating leverage as Sellers tend to take unconditional offers more seriously. When they counter or turn down an offer that is conditional on the sale of a home, they usually think the Buyer will come back with a better and firmer offer once they have sold their current home. However, if you make an unconditional offer, the Seller will usually give you more consideration. They realize you are probably looking at other properties and will move on if your offer is rejected. Likewise, if you have already sold your house, you probably do have a wider opportunity to look around, negotiate, and find the best deal and fit for you and your family

The flip side of this scenario, however, is that if you don't find the right property before the closing date of the house you've already sold, you may have to look for temporary housing on Rentfaster.ca until you do find what you're looking for.

So, before you opt to sell first, you should determine whether you have alternate, temporary options, in case you must move from your house before you have found a new one. How would you and your family deal with living in a transition home for an undetermined period?

Buy First?

Buying a new house without selling your current home may occur if you are interested in a specific property and will only sell your current home if this property comes on the market. It may be a matter of timing—grabbing hold of the home before it is too late. The same might be said of a property you have not had your eye on previously, but that catches your attention due to its uniqueness or unbelievable price. If buying first means you do not miss out on the real estate opportunity of a lifetime, it may be the best move

However, be careful. If you buy another property and cannot sell your current home quickly enough, you could end up having to finance both homes and shoulder the extra debt until you sell. You can get a financial appraisal or free market evaluation of a home before selling, but this does not guarantee the price you will ultimately receive for the home after the negotiation process has run its course. Since your selling price will be unknown, jumping into a purchase could be a gamble, particularly if your budget is tight.

Make sure you are familiar with all aspects of the financial reality this scenario would create before you purchase another home. You may be faced with owning two homes at once. What type of financial stress would this bring to your life, and how would you deal with it? Consider the fact that if your current house does not sell quickly enough, you may be forced to sell it off at a reduced price to align the closing dates of your two properties. What effect would this have on your financial situation?

Conditional Offer

An additional option involves making your offer to purchase conditional upon the sale of your current property within a specified period. Conditional offers usually include a clause that allows the Sellers to keep their property on the market and remain open to other offers while you try to sell your home. If the Sellers receive another attractive offer before you have sold your home, they may accept and ask you to either remove your condition and firm up your offer or to back down from the offer. A conditional offer forms a kind of middle ground, an area of compromise, for those afraid to sell or buy first—but does not hold the advantages of the other two options.

One of the drawbacks of the conditional offer is that Sellers tend to take them less seriously. They consider firm offers. This leaves you with less negotiating power. Some Sellers will turn down or counter a conditional offer. Other Sellers will believe the Buyer will come back with a more serious offer when their home has sold. So, you may end up having to increase your offer to have your conditional offer accepted and keep your foot in the door of your desired house.

Even if your conditional offer is accepted, there is no guarantee another Buyer won't step in and overthrow your offer before you have sold your current home, which would put you back at the starting line. Also, consider the fact that you cannot withdraw your conditional offer until the end of the period specified in the contract—which means that if a better deal comes along, you will have to wait to jump at it.