The Best Realtor® Fees Calculator
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Real estate fees should be simple. Use our Realtor® commission calculator for Calgary to easily lower your commission costs. It is important to use real estate agent commission calculators. They can help you make better decisions.
In Calgary’s real estate market, Realtor® fees are the commissions paid to agents. These fees are for helping sell a property. Typically, the listing agent and the buyer’s agent split these fees. The traditional commission structure is 7% on the first $100,000 and 3% on the balance. Lower commission brokerages, like 2% Realty, offer a flat-rate option. Sellers generally cover these fees, making it crucial to compare options.
Below is an explanation of how different commission models work and how homeowners can reduce costs when selling their property, use the provided realtor® fee calculator to compare the models.
Realtor® Fees Calculator
Real Estate Commission Fee Calculator
Your Expected Cost. See The Difference
2% Realty Fee: $0
Legacy Fee: $0
All Realtor® Fees are subject to GST. The higher the Fee the more tax you will pay!
Simple Fee Explanation
Using the Realtor® fee calculator for Calgary, you’ll see different outcomes based on brokerage choice. Realtors® can negotiate their fees when submitting an offer. When a property is sold, the commission is typically split between the listing and buyer’s agent.
- 2% Realty Fee payable at 1% for the listing agent and 1% for the buying agent, this represents the most desired outcome and the aim of every 2% Realty agent.
- Legacy Fee used by many traditional brokerages payable at 7%-on the first 100k and & 3% on the balance split between listing and buying agent.
- *Hybrid Fee* a homeowner listed with 2% Realty pays 1% to the listing agent, with a negotiated fee for the buyer’s agent. Savings over legacy fees are still guaranteed.
More on Realtor® Fees in Calgary
Understanding How Realtor® Fees Work
Sellers typically pay commission for both the listing and buying agents. Realtor fee calculators help visualize savings. Fees are technically negotiable, but brokerages rarely lower listing fees significantly.
Lower commission brokerages offer better savings while maintaining top-tier service. Real estate agents charge different rates depending on the market and brokerage policies.
What Does Legacy Commission Structure Mean?
Legacy brokerages charge a split fee model, often 7% on the first $100K and 3% on the remaining balance. Some take a higher percentage on the listing side, such as 4.5% on the first $100K. The average commission varies, but traditional legacy models tend to be higher.
This model has remained unchanged for decades, despite growth in home prices.
Calculating Fees with the Legacy Models
For a $550,000 home, legacy commission fees are 7% of the first $100,000. This amounts to $7,000. Then, there is 3% on the remaining $450,000, which is $13,500. In total, the fees equal $20,500 plus GST.
The seller’s and buyer’s agents usually divide these charges equally. This model is outdated, as commissions have not adjusted for rising home prices over the past 30+ years.
Calculating Fees with the 2% Model
2% Realty simplifies commission fees by charging a flat 2% on the final sale price. For a $550,000 home, total commission is $11,000, split between both agents.
This model maximizes savings while keeping service levels high. In some cases, a hybrid fee outcome may apply if the buyer’s agent negotiates their side of the fee and the seller accepts.
Why Haven't the Legacy Brokerages Adjusted Their Fees?
That’s a great question! The legacy commission structures haven’t evolved despite significant increases in home prices, making high fees harder to justify. The free market lets different models compete. In the end, consumers decide how much they want to pay.
Real estate commission calculator tools help sellers learn how much they can save. They can save money by using lower-fee brokerages like 2% Realty. Before someone sells a property, they should take the time to educate themselves to understand real estate agent fees to avoid paying excessive costs.
Additional Cost of Selling Your House
Beyond Realtor fees, sellers must consider additional closing costs involved in the sale. These expenses include legal fees for a real estate lawyer. They also cover getting a new Real Property Report (RPR).
You may face mortgage penalties, moving costs, and payments for rented equipment or loans, like solar panels. Understanding these costs helps homeowners budget effectively. For a deeper dive into selling expenses, check out our dedicated blog on closing costs when selling your home.
