subject: How do Real Estate Commissions Work in Calgary? [print this page] How do Real Estate Commissions Work in Calgary?
Ever wonder how much that REALTORat the open house is charging his clients? Ever wonder what the costs are when working with a REALTORto buy a home?
Did you know that as a buyer you pay NOTHING in real estate commissions? This of course is arguable by some of my colleagues, what do I mean?
Well some would argue that by paying X amount of dollars for a home, YOU, the buyer are actually paying the commission to theselling agent and the buyers agent.
I would argue it this way that the seller is responsible for paying commissions out of THEIR proceeds of sale, which of course they got from the buyer...make sense?
Anyway my point is this...Buyer's, unless you have signed a Buyer Brokerage agreement(more to come on this later in the week) you have no responsibility to pay any real estate commissions on top of what you pay for the property you are purchasing.
Seller's, you have a responsibility outlined in the listing contract between you and your Agent and that Agents brokerage to pay the agreed upon commissions which of course in Alberta(Canada) are totally negotiable.
I should also mention that commissions are completely and totally negotiable, now having said that I will also caution the average home owner on selecting the Agent that is going to offer the lowest commission to get their business.
This industry is no different than any other in that you get what you pay for! There are companies out there that will take your $500 and post a sign in your front yard, you will be responsible for the pictures and they will be responsible for uploading to the MLS and that will be that last time you hear from them.
Would you agree that this may quite possibly be the largest transaction you will ever make? If your answer is yes...would you want someone that is experienced enough to guide you through the entire process?
I will leave you with this one thought...if you think selling real estate is as easy as posting a few pictures on MLS and planting a sign in the front yard...go and get your real estate license. I am not trying to sound snarky or sarcastic, I say this in all sincerety, I would love to see you at the next big real estate conference so that we can swap stories!
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