1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for facilitating a property sale. In Florida, commissions are typically a percentage of the final sale price and are negotiable between the agent and their client.

2. How Commission is Calculated

The standard commission calculation follows this formula:

Where:

• Sale Price — Final selling price of the property
• Total Commission Rate — Percentage agreed between seller and listing agent
• Split Percentage — Agent's share of the total commission (after brokerage split)

3. Florida Commission Structure

Details: In Florida, total commission rates typically range from 5-6% of the sale price. This is usually split between listing and buyer's agents (typically 50/50), with each agent then splitting their portion with their brokerage (often 70/30 for new agents).

4. Using the Calculator

Tips: Enter the property sale price in USD, the total commission rate (e.g., 6 for 6%), and your personal split percentage (e.g., 70 for 70% if you keep 70% of your side's commission).

5. Frequently Asked Questions (FAQ)

Q1: Are commissions fixed in Florida?
A: No, commissions are always negotiable between the seller and their listing agent.

Q2: Who pays the commission in Florida?
A: Typically the seller pays the full commission, which is then split between both agents' brokerages.

Q3: What's a typical agent split in Florida?
A: New agents often get 60-70% of their side's commission, while experienced agents may get 80-100%.

Q4: Are commissions taxable in Florida?
A: Yes, commissions are considered income and subject to federal and state income taxes.

Q5: Do buyers pay commission in Florida?
A: Generally no, unless specifically agreed in the contract (this is rare in residential transactions).