1. What is Buyer Agent Commission?

The buyer agent commission is the portion of the real estate commission that goes to the agent representing the buyer in a property transaction. It's typically a percentage of the sale price, split between the listing agent and buyer's agent according to their agreement.

2. How Commission Calculation Works

The calculator uses the following formula:

Where:

• Sale Price — The final selling price of the property
• Commission Rate — Total commission percentage agreed between seller and listing agent
• Agent Split — Percentage of the commission that goes to the buyer's agent

Example: For a $500,000 sale with 5% total commission and 50% split to buyer's agent:
$500,000 × 5% = $25,000 total commission
$25,000 × 50% = $12,500 buyer agent commission

3. Importance of Commission Calculation

Details: Accurate commission calculation helps real estate professionals understand their potential earnings, negotiate splits, and plan their business finances effectively.

4. Using the Calculator

Tips: Enter the sale price in dollars, total commission rate as a percentage (typically 5-6%), and the agent's split percentage (typically 50-70% for buyer's agent). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical commission rate?
A: Standard rates are usually 5-6% of sale price, but this can vary by market and is always negotiable.

Q2: What's a common buyer agent split?
A: Common splits range from 50-70% to the buyer's agent, with the remainder going to the listing agent/broker.

Q3: Are commissions always split this way?
A: No, commission structures can vary. Some brokerages use different models like 100% commission with fees.

Q4: Who pays the buyer agent commission?
A: Typically the seller pays the total commission, which is then split between agents.

Q5: Are commissions taxable income?
A: Yes, commissions are considered taxable income for real estate professionals.