Saskatchewan Real Estate Commission Calculator 2024
Saskatchewan Real Estate Commission
What Are Real Estate Commissions?
Real estate commissions are the fees you pay to your real estate agent for their services. It is usually calculated as a percentage of the selling price of the property. In Saskatchewan, there are two common methods for calculating the commission:
- The commission is equal to the total of 6% of the first $100,000 of the selling price, 4% of the second $100,000, and 2% of any leftover exceeding amount
- The commission is equal to the total of 7% of the first $100,000 of the selling price and 3% of any leftover exceeding amount
Frequently Asked Questions
What is the average real estate agent commission in Saskatchewan?
The commission structure in Saskatchewan typically includes 6% for the first $100K of transaction value, 4% of the next $100k and 2% of the remaining balance. You encounter These values in the 3-tier Common Method in the above calculator. You may also encounter a commission of 7% on the first $100k and 3% on the remaining balance. These values are highlighted in the 2-tier Method. It is usually split 50/50 between the buyer’s and seller’s agents. There is no regulatory standard for commissions, however, and you should check with your agent.
$750,000 Property Selling Price Example
$750,000 Property Selling Price Example
What are the different types of commissions?
Depending on your agent, the commission can be paid as one of the below three different forms:
- A percentage of the selling price
- A fixed or flat fee, also called a flat-fee substitute
- A combination of a percentage of the selling price and a flat fee
Who pays the real estate commission?
The seller of the home will usually pay the real estate agent commission. When a home is listed, the seller will decide on the gross commission they are willing to pay and how it will be split between the buyer and seller agents. This commission will then be paid out by lawyers after the transaction has been completed.
Typically, the seller will cover the commission for both agents. In some cases, if the seller chooses to give a buyer agent commission less than what your representation agreement guarantees them, the buyer may have to pay their agent the difference. However, such cases are rare and real estate agents will generally let you know beforehand if it is the case.
Do I have to pay taxes on the real estate agent commission?
Yes, anyone who pays real estate commission has to pay PST and GST in Saskatchewan on the real estate agent commission.
Why are commissions so high?
Real estate agent commissions are high because the commission is split between many different parties and the real estate agent has to cover any marketing expenses even if the home doesn’t sell. The agent may have to pay upfront for professional photography, mail marketing materials, supplies, and much more. Your agent works very hard behind the scenes to ensure that you are getting the best price for your property and in some cases, a higher commission can mean better marketing for your home.
Comparison of Real Estate Commission Across Provinces
| Province | Typical Real Estate Commission Rate | Average Sold Prices of Homes in April 2024 | Average Total commission Paid to Both Agents |
|---|---|---|---|
| Alberta | 7% for 1st $100K and 3% for the remaining balance | $499,505 | $18,985 |
| Ontario | 5% of total price | $900,161 | $45,008 |
| B.C. (Greater Vancouver Area) | 7% for 1st $100K and 2.5% for the remaining balance | $1,006,248 | $29,656 |
| Saskatchewan | 6% for 1st $100K, 4% for the 2nd $100K, and 2% for the remaining balance | $324,474 | $12,489 |
| Manitoba | 5% of the total price | $382,658 | $19,133 |
| Quebec | 5% of the total price | $498,124 | $24,906 |
| Nova Scotia | $1,500 flat fee for properties under $25,000 and 5% of the total price for other properties | $468,543 | $23,427 |
| New Brunswick | 5% of the total price | $334,561 | $16,728 |
| Prince Edward Island | 5% of the total price | $379,366 | $18,968 |
| Newfoundland and Labrador | 5% of the total price | $304,570 | $15,228 |
Ontario and British Columbia have some of the highest housing prices, which results in higher average total real estate commissions. Although British Columbia’s real estate commission rates are one of the lowest in the country, homeowners ultimately end up paying a comparatively higher real estate commission due to the higher average selling price of homes.
Who sets the commission rate?
There is no formal rule or regulation that sets the commission rate. Each agent can choose their own commission type and rate or fee. Although the commission will vary from agent to agent, it will be close to the average commission for the area. Real estate commissions are negotiable. Details about your agent’s commission will be outlined in the contract you sign when hiring an agent.
As a seller can I negotiate the real estate agent fees?
Yes! Like most other service fees, you can negotiate the commission with your agent. The commission makes up the largest portion of your selling costs, so it always makes sense to check and negotiate the commission of different real estate agents when selling a property.
As a buyer can I negotiate the real estate agent fees?
Typically no, since you are not paying your agent directly and they are paid by the seller. However, some agents are willing to give a portion of their commission back to buyers as a cashback rebate. Find out more about cashback rebate agents.
Can I save with a flat-fee commission?
Flat-fee commissions can seem like a great way to save money, especially since they are usually cheaper than equivalent percentage-based commissions. However, the quality and quantity of services offered with flat-fee packages are often much lower. You may have to stage and market the home yourself, and you will still have to pay a buyer’s agent commission.
Are there cases where the seller does not have to pay a real estate commission?
Yes. Real estate agent commission is paid only when the property is sold, even if the property has been listed for a long time. In addition, some sellers may choose to self-list their properties and not offer a commission to buyer agents. We do not recommend this as doing so could reduce the likelihood of your property being sold.
What does it mean to double-end a real estate commission?
A double-ended deal is when one agent represents both the seller and the buyer. In this case, the agent will get the full amount of the commission. This can happen if the buyer directly contacts and works with the seller’s agent after finding the listing without consulting an agent of their own. However, this is not recommended due to potential conflicts of interest. Agents are required to tell you in advance if they are double-ending a commission.
What are some restrictions on commission types in Saskatchewan?
The Real Estate Act regulated by the Superintendent of Real Estate and the Saskatchewan Real Estate Commission (SREC) does not allow a commission determined based on the difference between the listing price and the final sale price.
Agents are allowed to base their commissions on how much they think the home will sell for. For example, a $400K home will have less commission than a $1M home if charged at the same rate. Agents can choose to charge a lower commission rate for the $1M home or a higher commission rate for a $400K home.
Other Real Estate Fees
There are many additional closing costs involved in selling a home including lawyer fees, penalties from closing out a mortgage too early, as well as legal fees.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.