1. What is a Flat Commission?

A flat commission in real estate is a fixed fee paid to a real estate agent or broker regardless of the sale price of the property. Unlike percentage-based commissions, this model charges the same amount whether the property sells for $200,000 or $2,000,000.

2. How Does Flat Commission Work?

The flat commission model is straightforward:

Key Features:

• Fixed dollar amount agreed upon in the listing agreement
• Not tied to the final sale price of the property
• May be combined with other fee structures in some cases
• Must be clearly disclosed to all parties

3. California Real Estate Commission Basics

California Specifics: While commissions are always negotiable in California, flat fee arrangements must comply with all state disclosure requirements. The California Association of Realtors provides specific forms for commission agreements.

4. Using This Calculator

How to Calculate: Simply enter the agreed upon flat rate amount in USD. The calculator will display the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Is flat commission common in California?
A: While percentage-based commissions are more common, flat fee models are gaining popularity, especially for higher-priced properties.

Q2: Are there minimum commission requirements?
A: No, California law prohibits minimum commission requirements. All commissions are negotiable between broker and client.

Q3: Who pays the commission in California?
A: Typically the seller pays, but this is negotiable. The payment structure must be specified in the listing agreement.

Q4: Are flat fees always better?
A: It depends on the situation. Flat fees may benefit sellers of high-value properties, while percentage fees might be better for lower-priced homes.

Q5: How is the flat fee split between agents?
A: The split is negotiable between the listing broker and buyer's broker, just like with percentage commissions.