Common Calgary Commission Example

The 7/3 commission structure has been the de facto Calgary benchmark for years. Here's how it actually calculates:

How commission actually works

Where the Commission Goes

Most sellers think of commission as a single fee. It's actually split between two brokerages - and understanding that split explains why the buyer agent concern with lower commissions is often overstated.

In a traditional Calgary transaction, the listing brokerage and the buyer's brokerage each receive a portion of the total commission. Under a traditional 7/3 structure on a $600,000 sale, the $22,000 total is typically split roughly in half - approximately $11,000 to the listing brokerage and $11,000 to the cooperating buyer's brokerage.

Under the 2 Percent Realty model, the total commission is lower, but a cooperating buyer's agent commission is still offered and disclosed in the MLS listing. This is why well-positioned 2 Percent Realty listings still receive buyer agent-facilitated showings - the buyer's agent compensation is still present in the transaction.

The commission difference is primarily captured on the listing side - which is where the seller's savings come from.