In Calgary, realtor fees typically follow a "7/3" model: 7% on the first $100,000 of the home's price and 3% on the remaining balance. For example, if a house sells for $400,000, the commission would be $7,000 for the first $100,000 and $9,000 for the remaining $300,000, totaling $16,000. This amount is usually split equally between the buyer's and seller's agents.
It's worth noting that these fees are negotiable and can vary depending on the services provided by the realtor. If you're planning to buy or sell, it's a good idea to discuss the fee structure with your agent upfront to ensure clarity.
Who Pays
In most Canadian real estate transactions, the responsibility for paying realtor fees typically falls on the seller. When a property is listed for sale, the seller and their listing agent agree on a commission rate, which is often calculated as a percentage of the final sale price. This commission is then split between the listing agent, who represents the seller, and the buyer’s agent, who represents the buyer. This arrangement means that buyers are not directly responsible for paying realtor fees in most cases; instead, these costs are included in the seller’s expenses when selling their property.
A real estate agent handles all negotiations in the best interest of their clients. They will be able to identify potential problems and know what you are legally entitled to. An experienced real estate agent will help you avoid overpaying for a home and handle negotiations on your behalf, potentially saving you thousands of dollars. Finally, a real estate agent can access sales information online and use comparable properties as reference points for the home you are considering. By working with a real estate agent, you can save time, avoid costly mistakes, and increase your chances of achieving your goals in the real estate market.
When hiring a realtor to sell your home, look for realtors who provide enhanced marketing strategies, including high quality photography, virtual tours, 3D presentations, videos, drone photos and high-quality print material.
Ultimately, the goal is to select a realtor whose expertise aligns with your real estate objectives and who offers value that corresponds to their fees. Additionally, it's important to choose someone you feel comfortable working with, who is honest and trustworthy. This approach will ensure a seamless transaction process and maximize the potential return on your investment.