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 New Jersey, this is typically a percentage of the sale price that's split between the buyer's and seller's agents.

2. How is Commission Calculated in NJ?

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 NJ)
• Split — Percentage that goes to buyer's agent (often 50%)

3. Typical Commission Rates in New Jersey

Details: In New Jersey, total commission rates typically range from 5% to 6% of the sale price, with the buyer's agent usually receiving 50-60% of the total commission. However, these rates are always negotiable.

4. Using the Calculator

Tips: Enter the sale price in USD, the total commission rate (usually between 5-6%), and the buyer agent split percentage (often 50%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: Are real estate commissions negotiable in New Jersey?
A: Yes, all real estate commissions are negotiable between the seller and their listing agent.

Q3: What's the average buyer agent split in NJ?
A: While 50% is common, splits can range from 40-60% depending on the brokerage agreement.

Q4: When is the commission paid?
A: The full commission is paid at closing from the seller's proceeds.

Q5: Are there any NJ laws regulating commissions?
A: New Jersey doesn't set commission rates by law, but all commissions must be properly disclosed in the listing agreement.