1. What is Realtor Commission?

Realtor commission is the fee paid to real estate agents for their services in facilitating a property sale. In California, this is typically a percentage of the final sale price and is usually split between the buyer's and seller's agents.

2. How Commission is Calculated

The calculator uses the standard commission formula:

Where:

• \( Sale\ Price \) — Final selling price of the property
• \( Commission\ Rate \) — Agreed percentage rate (typically 1.5-6% in California)

Example: For a $500,000 home with a 2.5% commission rate, the total commission would be $12,500.

3. California Commission Rates

Details: While commission rates are negotiable, typical rates in California range from 1.5% to 6% of the sale price, with 5-6% being traditional but lower rates becoming more common.

4. Using the Calculator

Tips: Enter the sale price of the property and the agreed commission rate. The calculator will instantly show the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates fixed in California?
A: No, commission rates are always negotiable between the seller and the real estate agent/broker.

Q2: Who pays the realtor commission?
A: Typically the seller pays the commission, which is then split between the listing and buyer's agents.

Q3: Are there ways to reduce commission rates?
A: Yes, options include flat-fee listings, discount brokers, or negotiating lower rates, especially for higher-priced homes.

Q4: What's the average commission in California?
A: While traditionally 5-6%, recent trends show rates between 4-5% being more common, with some going as low as 1.5-3% for certain services.

Q5: Is commission taxed?
A: Yes, commission is considered taxable income for the real estate professionals receiving it.