So you’re thinking about buying or selling your home in Calgary, but haven’t gone through the process of utilizing a licensed REALTOR®, you may have inherited the property, are a first time buyer or seller, or have done transactions privately, and now you're wondering what a REALTOR® might charge for their services.
Selling your home can feel like a DIY project at first—many people dive into online listing spaces, thinking they can save on real estate fees. But the reality? Most realize pretty quickly that a licensed REALTOR® and a team to sell your home is not just a luxury, but a necessity to get the best deal and avoid costly mistakes.
First and foremost, REALTOR® fees are always negotiable and are not set in stone by any means. This means one agent or Calgary real estate team could charge differently from one another as they may offer more value or built in services than the other.
Understanding Realtor Fees in Calgary: How Much Are Real Estate Agent Fees
There is no standard commission rate in Calgary. Often you will read consumers state that a common commission is 7% on the first $100,000 of the sale price and 3% on the remaining balance, but this is not a mandatory fee and you will see some charge more and some charge less.
However, if you were to use those numbers as an example, and you’re selling a $500,000 home, the commission would be calculated as:
- 7% of the first $100,000 = $7,000
- 3% of the remaining $400,000 = $12,000
- Total commission = $19,000
This fee is generally split between the buyer’s agent and the seller’s agent, meaning each would take home $9,500
Visual Breakdown of REALTOR® Fees
To help visualize how commissions work, here’s a sample breakdown based on the previous commission structure we used above.
| Sale Price | First $100,000 (7%) | Remaining Amount (3%) | Total Commission | Split Between Seller & Buyer Agent |
|---|---|---|---|---|
| $300,000 | $7,000 | $6,000 | $13,000 | $6,500 each |
| $500,000 | $7,000 | $12,000 | $19,000 | $9,500 each |
| $800,000 | $7,000 | $21,000 | $28,000 | $14,000 each |
Realtor® Fees Calculator
Please keep in mind, this calculator is only based on the REALTOR® fees structure of 7/3 (explained in the article and below) Although they're quite uncommon in this market, there are various other commission fees we've seen in the Calgary real estate market, these include:
- REALTOR® Fees that are set as a fixed % of the total sale price. %5 For example would be split between both agents (buyer/seller) $1,000,000 sale X 0.05 = $50,000
- An hourly rate - This is quite uncommon and is typically structured for very unique situations
- Flat rate commission fees - For example a seller may simply negotiate a flat rate to sell their home.
The REALTOR® Commission Fee: What Is It and Is It Worth It?
For first-time sellers in Calgary, the topic of real estate commissions can seem overwhelming. While it may seem tempting to cut costs by skipping the agent's fee, sellers often find themselves facing higher costs, more stress, and longer times on the market without professional guidance, marketing, and the exposure your home deserves.
Understanding Real Estate Commissions
Real estate commissions are a fee for the services provided by both the seller's and the buyer's agents. Typically, this fee is covered by the seller. There’s no one-size-fits-all here—commission structures can vary based on the agent and their approach. According to the Real Estate Council of Alberta, real estate commissions in Calgary generally follow one of these methods
- Flat fee: A set price for the agent’s services.
- Percentage of sale price: Often between 5-7% of the home's final sale price.
- Negotiated commission: Customized commission based on agreement between the seller and agent.
When the sale is finalized, these commissions are paid out—no upfront costs.
You may notice on MLS® listings, that the buyers commissions they receive when the deal goes through is posted, however, the listing won't disclose what the actual commission structure is between a seller and the listing agent.
What Are Real Estate Commissions?
When you hire a real estate team, their services come with a fee—this is known as the agent's commission. In Calgary, real estate commissions typically cover both the listing agent (representing the seller) and the buyer’s agent, but the seller is responsible for paying the full amount.
The Real Estate Brokerage Agreement
In Alberta, buyers must sign a service agreement with their real estate agent if they want to utilize them for their transaction, these agreements can be under two different types of agreements an exclusive buyer representation or a non exclusive buyer representation agreement - This has been in affect since 2014 and provides clear and concise documentation of REALTOR® fees for the buyers and expectations between both parties (buyer and buying agent)
What Do Real Estate Commissions Cover?
The commission fee you pay often covers much more than just a sign in the yard. Services can range from pricing your home competitively to staging, marketing, and negotiating on your behalf.
Some services included in a commission are:
- Pricing Strategy: Based on market data and insights.
- Home Staging: Enhancing your home’s appeal.
- Advertising: Professional listing on MLS® and social media platforms.
- Negotiation and Communication: Managing the process between buyers, agents, and yourself.
- Closing the Deal: Ensuring all paperwork is completed and the sale goes smoothly.
A good agent does more than just list your home—they manage the stress, negotiate fiercely, and help you achieve the highest possible price. A team like ours should be able to provide even more value then your average agent as our agents are empowered by the
In general, real estate commissions are split between the buyer’s agent and the seller's agent. If you agreed to a 6% commission fee split evenly, for example, you will pay it to your agent’s brokerage, which will then pay 3% to the buying brokerage and, inevitably, the buyer’s agent.
What can't a REALTOR® charge me?
Calgary can serve up dynamic real estate market shifts, which presents opportunities for agents to sell homes for sometimes far more than expected. A REALTOR® is not allowed to sell your home for the difference though. What does that mean? Well lets say you think your home is worth $500,000 and that's what you want for it, and the home ends up selling for $550,000 - A real estate agent cannot sell your home with a structure that pays them for anything greater than your desired price (In this instance $50,000) this is strictly prohibited.
How Calgary Brokerages Are Setup
With regulations and regulators in place, designed to protect the consumer, all REALTOR® real estate contracts and deals are seen through a registered real estate brokerage, this means that money seen in the transaction (deposits) are held in
It's important to note: Your REALTOR® fees or commissions will never, under any circumstances be paid directly to the agent, and if your agent is asking you to do so, you should contact the Real Estate Council of Alberta and their designated brokerage, agents doing this are directly breaking the rules and this should be addressed immediately.
Typically, the listing brokerage that represents the seller will disburse all commissions to the buying and selling REALTORS® which means through your contract with the brokerage and the designated agent, you will have the brokerage perform all designated payouts per the contracts signed.
Is Hiring a Real Estate Agent Really Worth It?
One of the biggest misconceptions is that paying for an agent guarantees a sale. While experienced agents have higher success rates, the sale of your home still depends on a variety of factors like pricing, condition, and market demand. Hiring a real estate team, however, dramatically improves your chances of a quick and profitable sale and getting the most exposure on your home.
Your listing is a reflection of the inherent value of your home, not giving it proper representation across as many platforms as possible is not giving it the best opportunity to shine. Working with a team like us means you're getting access to our entire database (thousands of active buyers), our social media, our marketing team (video, photos, print media, single property sites) access to agents that have sold thousands of homes, and are amongst the best trained agents in the industry.
Real Estate Commissions for New Builds: An Exception
When it comes to new builds, the dynamics of real estate commissions shift significantly, offering distinct advantages for buyers:
- No REALTOR® Fees for Buyers: Buyers of new construction homes through our services incur no REALTOR® fees. This cost-effective feature ensures that you can invest more in your home preferences without worrying about additional expenses.
- Exclusive Builder Relationships: Our team has established relationships with top home builders in Calgary, providing you with early access to new homes and developments.
- Insider Pricing and Promotions: Gain access to exclusive pricing and promotions that are not available to the general public.
- Expert Guidance on Product Selection: Our extensive knowledge of available housing products, layouts, and upgrades ensures that you choose a home that suits your long-term needs and maximizes future resale value.
Comparing Realtor Fees Across Different Markets
In the real estate market, the term "realtor fees" can signify a variety of commission structures that significantly vary from one region to another. Understanding these variations is crucial for both sellers and buyers as they navigate the complexities of real estate transactions across different provinces in Canada - Note that these values aren't set in stone and are just typical structures we see, no rates are mandatory / structured / set across Canada.
| Province | Typical Real Estate Commission Rate | Average Home Price | Estimated Commission Paid to Both Agents |
|---|---|---|---|
| Alberta | 7% for 1st $100K and 3% for the remaining balance | $410,000 | $16,200 |
| Ontario | 5% of total price | $750,000 | $37,500 |
| B.C. (Greater Vancouver Area) | 7% for 1st $100K and 2.5% for the remaining balance | $1,200,000 | $37,750 |
| Saskatchewan | 6% for 1st $100K, 4% for the 2nd $100K, and 2% for the remaining balance | $410,000 | $16,200 |
| Manitoba | 5% of the total price | $315,000 | $15,750 |
| Quebec | 5% of the total price | $480,000 | $24,000 |
| Nova Scotia | $1,500 flat fee for properties under $25,000, and 5% of the total price for other properties | $325,000 | $16,250 |
| New Brunswick | 5% of the total price | $210,000 | $10,500 |
| Prince Edward Island | 5% of the total price | $305,000 | $15,250 |
| Newfoundland and Labrador | 5% of the total price | $250,000 | $12,500 |
The Value of a Real Estate Team
Staging and Presentation: In real estate, first impressions matter. A well-staged home not only sells faster but often at a higher price. Agents know what buyers are looking for and can offer invaluable advice on small changes that can increase your home's appeal—without the need for a full renovation.
Market Expertise: Experienced agents know the ins and outs of the market, including which offers are serious and which are simply testing the waters. They’ll know how to respond to lowball offers and when to hold out for more, saving you time and stress.
Negotiation Skills: A skilled agent will navigate negotiations with ease, making sure you get the best deal possible. Their goal? To maximize your profit while ensuring a smooth sale.
Understanding the Value of Using a Realtor: Insights for Buyers
When entering the real estate market, whether you're a first-time buyer or an experienced investor, the guidance of a seasoned Realtor can be invaluable. Dusko Sremac, a leading Realtor with REPYYC, shares crucial insights on why using a Realtor is not only beneficial but essential for buyers.
Commission Fees For Buyer REALTOR®
In Alberta and Calgary, it’s most common for the sellers in a transaction to cover all REALTOR® fees, our team to date has not charged our buyers directly for our services, as we almost always collect our agent commissions through the sellers, even in for sale by owner situations (private real estate sales or FSBO’s) or when a home is listed through brokerages that advertise themselves as being discount.
Home buyers - this is not a topic your agent should skirt around, your agent should always be upfront with you about when discussing their REALTOR® fees - Who is paying them and how they are being paid should never be left to doubt.
When buying a home, if you’re looking for professional real estate advice, with no cost to you as the buyer, you should reach out to the real estate partners team with REAL BROKER, where you can obtain expert advice, expert negotiation skills, proprietary buyer programs and resources, off market homes, and much more at absolutely no cost to you! Money in these transactions whether you’re a buyer or seller will never flow through from agent to agent and will always be held in trust with a brokerage.
Why Using a Realtor is a No-Cost Benefit to Buyers: Many buyers believe that avoiding a REALTOR® can save them money. However, when you're buying a home, using a REALTOR® in most instances comes at no cost to you. The seller typically covers the commission, making professional representation accessible and advantageous for buyers.
Misconceptions About Saving on Fees: A common misconception among buyers is that dealing directly with the seller's Realtor will save on fees. However, the seller's agent's initial duty is to secure the highest possible price for the seller, not to help the buyer save money. Having your own real estate agent ensures someone is in your corner, negotiating with your best interests at heart.
Expert Market Knowledge and Negotiation Skills: Dusko Sremac and the Real Estate Partners Team bring extensive experience, with involvement in over 1,500 transactions since 2020. This deep market knowledge and robust construction expertise mean we can negotiate effectively, potentially saving or making you tens of thousands of dollars. Expertise that is crucial, especially in competitive markets where every small edge counts.
Strategic Advice Beyond Price Negotiations: The advice from experienced Realtors extends beyond simple price negotiations. Understanding whether a property is overpriced or if a deal truly reflects market value is key. For instance, a property might be listed at a price where even a 5% reduction doesn't necessarily equate to a good deal if it's initially overpriced by 10%.
Debunking Real Estate Commission Myths
Many sellers believe that hiring an agent guarantees a sale—this isn’t always the case. But when time is of the essence, or if it’s your first time selling, a real estate agent can make all the difference. Their expertise often results in a faster sale and a higher selling price, more than covering their commission.
Investment in Your Success
Agents invest their time and resources into selling your home. Our team employs professionals (insured) to perform some of the most important tasks like measurements, and photos. We offer staging consultations to get your home in its best form, our marketing team (videographer, graphics, etc) create content including longer form videos, short form (Reels/Shorts) content for social media like coming soon graphics - While some may view these as a gamble on their part, for us it's part of our business, our routine, our systems and processes we've developed and deploy through a team of professionals that allow our agents to as they only earn a commission if and when your home sells. This risk motivates agents to work diligently to find the right buyer for your property.
Can You Negotiate Real Estate Commissions?
While many agents have set fees, it’s not uncommon for sellers to try to negotiate. Some real estate agents are open to adjusting their commission, especially if you’re upfront about your budget or plan to sell multiple properties. However, keep in mind that reducing the fee may also impact the level of service provided.
While there isn't a standard REALTOR® listing fee/commission fee, real estate agents have the option to reduce their fees. That said, it's not a guarantee. For the best results, you should research real estate agents, ask them questions, and discuss their listing fee method. You are under no obligation to go with the first one you meet.
If you're not comfortable with a flat fee, for example, you're within your rights to part ways, be aware, if you're under contract, you could incur fees for breaking a contract, something your agent should clearly convey and explain.
Pro Tip: Don’t hesitate to shop around and interview a few agents. Understanding their commission structure—and what you’re getting in return—is key.
Why REPYYC is the Smart Choice for Selling Your Home
When you choose REPYYC, you're not just getting a real estate team; you're getting a powerhouse of digital marketing and visual storytelling expertise that brings unparalleled attention to your listing. Here's why REPYYC stands out as the best choice for sellers:
Standout Visual Presentation: Our commitment to visual excellence sets your home apart. With professional staging, enhanced front photo edits, and advanced drone videography, your property isn’t just listed—it’s showcased. Our full-time professional videographer ensures each video and image captures the unique beauty and selling points of your property.
Targeted Digital Marketing Excellence: REPYYC excels in SEO and PPC, drawing in targeted buyers specifically looking for properties like yours. Recognized as one of the best PPC teams in Canada, we strategically place your home in front of the right audience, ensuring maximum visibility.
Comprehensive Online Exposure: Our digital marketing strategy maximizes your property’s exposure across over 100 social media accounts and major real estate platforms. This omnipresent approach enhances listing visibility and draws significant buyer interest, backed by our substantial investment in Google and social media advertising.
Innovative Selling Strategies: We use cutting-edge technology and creative marketing techniques to make your listing shine. From virtual staging to cinematic video tours, every tool at our disposal is used to create an engaging and compelling presentation of your home.
Selecting a Trustworthy Calgary Realtor®
One of the best things you can do is your own due diligence - Below are two of our recommended ways of sourcing whether you're working with a well reviewed agent who can demonstrate their proficiency in the real estate market.
Sites like RankMyAgent with Verified REALTOR® Reviews
Calgary Real Estate Google Reviews
are great places to start reading reviews on REALTORS® within the Calgary real estate market and surrounding areas. Our team has hundreds of reviews online from the sites listed above to our Facebook page, and some great feedback on our Calgary Real Estate Youtube Channel!
*Please note, this is not legal advice, this is professional real estate advice, this blog is for informative purposes and you should always discuss these topics with an active licensed REALTOR® to ensure you're receiving the most accurate and up to date information possible. While the information here is believed to be accurate, we cannot guarantee it and recommend you seek independent legal advice for any matters relating to your individual legal real estate needs or concerns.
Posted by Cody Tritter on
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