1. What is Realtor Commission?

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

2. How Commission is Calculated

The commission is calculated using this simple formula:

Where:

• Sale Price — The final selling price of the property
• Commission Rate — The agreed percentage rate (typically 5-6% in the US)

3. Understanding Commission Rates

Details: Commission rates vary by market, property type, and negotiation. The "best" rate depends on services provided, market conditions, and agent experience.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What's the typical realtor commission rate?
A: In the US, it's traditionally 5-6% of the sale price, split between listing and buyer's agents.

Q2: Are commission rates negotiable?
A: Yes, commission rates are always negotiable between the seller and their listing agent.

Q3: Who pays the realtor commission?
A: Typically the seller pays the full commission, which is then split between both agents.

Q4: Are there alternatives to percentage-based commissions?
A: Some brokers offer flat-fee or tiered commission structures, especially for higher-priced homes.

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