1. What is Buyer Agent Commission?

The buyer agent commission is the portion of the total real estate commission that goes to the agent representing the buyer in a real estate transaction. In California, this is typically negotiated between the seller and listing agent, then split with the buyer's agent.

2. How Commission is Calculated in California

The standard formula for calculating buyer agent commission is:

Where:

• Sale Price — The final sale price of the property
• Commission Rate — Total commission percentage (typically 5-6% in California)
• Buyer Agent Split — Percentage of total commission that goes to buyer's agent (typically 40-50%)

3. Understanding Commission Splits

Details: The total commission is first split between listing and selling brokerages, then each brokerage splits their portion with their agent. This calculator shows only the buyer agent's portion.

4. Using the Calculator

Tips: Enter the sale price in USD, total commission rate as a percentage (e.g., 5 for 5%), and the buyer agent's split percentage (e.g., 50 for 50% split).

5. Frequently Asked Questions (FAQ)

Q1: What is the typical commission rate in California?
A: While negotiable, commission rates typically range from 5-6% of the sale price in California.

Q2: How is the commission split between agents?
A: The total commission is typically split 50-50 between listing and buyer brokerages, then each brokerage splits with their agent (often 60-40 or 70-30 in favor of the agent).

Q3: Who pays the buyer agent commission?
A: In California, the seller typically pays both listing and buyer agent commissions from the sale proceeds.

Q4: Are commissions negotiable?
A: Yes, all aspects of real estate commissions are negotiable in California, including the total rate and how it's split.

Q5: When is the commission paid?
A: Commissions are paid at closing from the escrow account, after all transaction documents are signed and funds are disbursed.