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 property transaction. It's typically a percentage of the sale price that's split between the buyer's and seller's agents.

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 (typically 5-6%)
• Split — Percentage of total commission that goes to buyer's agent (typically 40-50%)

Example: For a $500,000 home with 5% total commission and 50% buyer agent split, the buyer agent would earn $12,500.

3. Understanding Commission Structure

Details: Real estate commissions are negotiable and typically range from 5-6% of the sale price. This is usually split between the listing agent and buyer's agent, with each typically receiving 2.5-3%.

4. Using the Calculator

Tips: Enter the sale price in dollars, total commission rate as a percentage (e.g., 5.5), and the buyer agent's split percentage (e.g., 50 for 50% split).

5. Frequently Asked Questions (FAQ)

Q1: Who pays the buyer agent commission?
A: Typically the seller pays the full commission, which is then split between agents.

Q2: Are commissions negotiable?
A: Yes, all aspects of real estate commissions are negotiable between the parties.

Q3: What's a typical buyer agent split?
A: While 50/50 is common, splits can vary from 40/60 to 60/40 depending on the brokerage agreement.

Q4: Do commissions vary by property price?
A: Sometimes higher-priced properties may have lower percentage rates.

Q5: How is commission taxed?
A: Commissions are considered taxable income for the agents and brokerages.