1. What is a Low Commission Calculator?

This calculator helps estimate real estate agent commissions in California when using discount or low-commission brokers. Traditional rates are typically 5-6%, but many brokers now offer rates as low as 1-3%.

2. How Commission Calculation Works

The calculator uses a simple percentage formula:

Where:

• \( Sale\ Price \) — Final selling price of the property
• \( Commission\ Rate \) — Agreed percentage rate with the broker

Example: For a $500,000 home at 1.5% commission: $500,000 × 0.015 = $7,500

3. California Real Estate Commission Rates

Details: While commissions are negotiable in California, traditional full-service brokers typically charge 5-6% (split between buyer's and seller's agents). Low-commission brokers may charge 1-3%, often with reduced services.

4. Using This Calculator

Tips: Enter the expected sale price of your property and the commission rate offered by your broker. The calculator will show both the dollar amount and the calculation details.

5. Frequently Asked Questions (FAQ)

Q1: Are real estate commissions negotiable in California?
A: Yes, commissions are always negotiable between the seller and their broker.

Q2: What's included in a typical commission?
A: Traditional commissions cover agent services, MLS listing, marketing, and buyer's agent commission. Low-commission brokers may offer fewer services.

Q3: Who pays the commission in California?
A: Typically the seller pays both the listing and buyer's agent commissions from the sale proceeds.

Q4: Are there additional fees beyond commission?
A: Some brokers charge additional transaction or administrative fees. Always review your agreement carefully.

Q5: How do I find low-commission brokers?
A: Research online or ask for recommendations. Compare services offered at different commission levels.