1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents for their services in facilitating the sale or purchase of property. In Georgia, this is typically a percentage of the final sale price, split between the buyer's and seller's agents.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• Sale Price — Final selling price of the property (in USD)
• Commission Rate — Agreed percentage rate (typically 5-6% in Georgia)

3. Typical Commission Rates in Georgia

Details: In Georgia, the standard real estate commission rate is typically between 5-6% of the home's sale price. This is usually split between:

• Listing agent/broker: 2.5-3%
• Buyer's agent/broker: 2.5-3%

Note that commission rates are always negotiable between the seller and their agent.

4. Using This Calculator

Instructions: Enter the sale price of the property in USD and the commission rate as a percentage (e.g., 5.5). The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

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

Q2: Are commission rates fixed in Georgia?
A: No, commission rates are negotiable between the seller and their listing agent.

Q3: Can commission rates be lower than 5%?
A: Yes, some discount brokerages offer lower rates, typically with reduced services.

Q4: How is commission paid at closing?
A: The commission is deducted from the seller's proceeds at closing and distributed to the respective brokers.

Q5: Are commissions taxable in Georgia?
A: Yes, real estate commissions are considered taxable income for the agents/brokers.