1. What is a Real Estate Commission Calculator?

This calculator helps homeowners and sellers estimate real estate agent commissions based on sale price and the best available commission rates. Traditional rates are 5-6%, but many brokers now offer lower rates (1-3%).

2. How Commission Calculation Works

The calculator uses this simple formula:

Where:

• Sale Price — The final selling price of the property
• Commission Rate — The percentage charged by the real estate agent/broker

Example: For a $500,000 home at 2.5% commission: $500,000 × 0.025 = $12,500 commission

3. Understanding Commission Rates

Current Market Rates:

• Traditional full-service brokers: 5-6% (split between buyer/seller agents)
• Discount brokers: 3-4%
• Low-commission brokers: 1-2.5%
• Flat-fee MLS listings: $500-$1,000 + 2-3% buyer's agent commission

4. Using This Calculator

Instructions:

1. Enter your expected sale price (without commas)
2. Enter the best commission rate you've negotiated (1-10%)
3. Click "Calculate" to see your estimated commission

Tip: Compare multiple rate scenarios to see how small percentage differences can save thousands.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates negotiable?
A: Yes! Commission rates are always negotiable. Many sellers save thousands by negotiating rates or using discount brokers.

Q2: Who pays the real estate commission?
A: Typically the seller pays both the listing agent and buyer's agent commissions from the sale proceeds.

Q3: What's included in a full-service commission?
A: Full-service typically includes marketing, showings, negotiations, paperwork, and guidance through closing.

Q4: Are low-commission brokers worth it?
A: It depends on services needed. Low-commission options often provide basic services - good for tech-savvy sellers who need less hand-holding.

Q5: How is commission split between agents?
A: The total commission is typically split 50/50 between listing and buyer's agents, though splits can vary.