Real Estate Fees & Commissions - Who Pays?

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 agent 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 home seller with $626,500.

The Real Estate Commission and Fees would be split between the Buyer's Realtor and the Seller's 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. Learning and Doing it Better and Better.

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


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