1. What is Realtor Commission?

Realtor commission is the fee paid to real estate agents for their services in buying or selling property. In New Jersey, this is typically a percentage of the home's sale price, split between the buyer's and seller's agents.

2. How Commission is Calculated

The standard commission calculation is:

Where:

• Sale Price — Final selling price of the property
• Commission Rate — Agreed percentage rate (typically 5-6% in NJ)

3. Typical NJ Commission Rates

Current Rates: In New Jersey, standard commission rates range from 5% to 6% of the sale price, typically split 50/50 between the listing agent and buyer's agent.

Note: Commission rates are always negotiable and may vary based on property type, market conditions, and services provided.

4. Using the Calculator

Instructions: Enter the sale price of the property and the commission rate percentage. The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Who pays the realtor commission in NJ?
A: Typically the seller pays the full commission, which is then split between the listing and buyer's agents.

Q2: Are commission rates fixed in New Jersey?
A: No, commission rates are negotiable and not set by law. Rates typically range from 5-6% but can vary.

Q3: Can I negotiate commission rates with my realtor?
A: Yes, commission rates are always negotiable. Discuss options with your realtor based on services provided.

Q4: Is the commission rate the same for all property types?
A: Commercial properties and luxury homes may have different commission structures than standard residential properties.

Q5: When is the commission paid?
A: Commission is paid at closing from the sale proceeds, after all other fees and mortgages are settled.