1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents or brokers for their services in facilitating a property sale. This calculator helps sellers estimate their commission costs based on the sale price and agreed commission rate.

2. How Commission is Calculated

The calculator uses the standard commission formula:

Where:

• Sale Price — The final selling price of the property
• Commission Rate — The percentage rate agreed with the real estate agent

Example: For a $500,000 sale with 5% commission rate, the commission would be $25,000.

3. Understanding Commission Rates

Details: Commission rates typically range between 4-6% but can vary based on location, property type, and market conditions. Rates are often negotiable between seller and agent.

4. Using the Calculator

Tips: Enter the property sale price in dollars and the commission rate as a percentage. The calculator will instantly compute the commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Is commission always paid by the seller?
A: Typically yes, though this can vary by market and agreement. The commission is usually deducted from the sale proceeds.

Q2: Is the commission rate fixed?
A: No, commission rates are negotiable. Rates may be lower for higher-priced properties or in competitive markets.

Q3: Does the full commission go to the listing agent?
A: No, the total commission is typically split between the listing and buyer's agents (often 50/50).

Q4: Are there alternatives to percentage-based commissions?
A: Some agents offer flat-fee or tiered commission structures, especially for high-value properties.

Q5: When is the commission paid?
A: Commission is paid at closing, from the sale proceeds before the seller receives their net payment.