How Much Does a REALTOR® Cost in Calgary?

The standard commission formula

Calgary's standard REALTOR® commission structure is 7% on the first $100,000 of the sale price, plus 3% on the remaining balance. This total is typically split between the listing brokerage (representing the seller) and the buyer's brokerage — often 50/50, though the split can vary by transaction.

Who actually pays the commission?

In most Calgary real estate transactions, the seller pays the commission from their sale proceeds. The commission is factored into the listing price and settled at closing. This means buyers do not typically write a cheque to their REALTOR® — their agent is compensated from the commission the seller has agreed to pay.

However, commission structures in Canada are evolving following industry changes. Some agents now require buyers to sign a Buyer Representation Agreement that specifies a fee — which may or may not be offset by the cooperating commission offered by the seller's listing. Always ask any agent you're considering how they are compensated before signing any agreement.

Is commission negotiable in Calgary?

Yes — commission is always negotiable. The 7% + 3% structure is an industry convention, not a legal requirement. Flat-fee listing services exist for sellers who want to do more of the work themselves. Full-service agents may offer reduced commission for higher-value properties where the dollar amounts are substantial. Discount brokerages operate in Calgary but vary significantly in service level.

The relevant question is not whether you can negotiate commission, but what you're getting for it. A REALTOR® who negotiates aggressively on your behalf, has deep neighbourhood knowledge, and manages the transaction effectively can more than pay for their commission in price achieved or price saved — while a discount agent who can't negotiate or lacks local knowledge may cost you more than their lower fee saves.

Other closing costs to budget for

REALTOR® commission is the largest closing cost for sellers, but not the only one:

• Legal fees: $1,000–$2,000 for a standard transaction
• Title insurance: $200–$400 (usually required by lenders)
• Mortgage discharge fee: $200–$500 if breaking a term early
• Property tax adjustment: Varies — prorated to closing date
• Condo document fee: $200–$500 if selling a condo

For buyers, closing costs typically include legal fees, title insurance, home inspection ($400–$600), and potentially CMHC mortgage insurance premiums if your down payment is under 20%.