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KW Commission Formula:
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The KW (Keller Williams) commission formula calculates how much an individual real estate agent earns from a property sale. It considers the total sale price, the brokerage's commission rate, and the agent's split percentage with the brokerage.
The calculator uses the KW commission equation:
Where:
Explanation: The formula first calculates the total commission paid to the brokerage, then determines the agent's portion based on their split agreement.
Details: In real estate transactions, commissions are typically paid by the seller and split between the listing and buyer's brokerages. The agent then receives a percentage of their brokerage's share.
Tips: Enter the property's sale price in dollars, the KW commission rate as a percentage (e.g., 5.5), and your split percentage with the brokerage (e.g., 70 for a 70/30 split).
Q1: What is a typical KW commission rate?
A: KW typically charges 5-6% of the sale price, which is then split between listing and buyer's brokerages.
Q2: How does the agent split work?
A: The split determines what percentage of the brokerage's commission the agent keeps (e.g., 70% agent/30% brokerage in a 70/30 split).
Q3: Are commission rates negotiable?
A: Yes, commission rates are always negotiable between the seller and the listing agent/brokerage.
Q4: What other fees might affect my commission?
A: Agents may have additional fees like franchise fees, transaction fees, or brokerage-specific charges that come out of their commission.
Q5: How does the cap system work at KW?
A: After an agent reaches their annual cap (varies by market), their split percentage typically increases significantly (often to 100% minus fees).