1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for their services in facilitating a property sale. In both NSW (Australia) and California (USA), this is typically a percentage of the final sale price, negotiated between the seller and agent.

2. How Commission is Calculated

The calculator uses the standard commission formula:

Where:

• \( Sale\ Price \) — Final property sale price
• \( Commission\ Rate \) — Agreed percentage rate

3. Typical Commission Rates

NSW, Australia: Typically 1.5%-3.5% of sale price + GST
California, USA: Typically 5%-6% (split between listing and buyer's agents)

Note: Rates are negotiable and may vary based on property value, location, and market conditions.

4. Using the Calculator

Steps: Select your location (NSW or California), enter the property sale price and commission rate. The calculator will show the agent's commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Is commission negotiable?
A: Yes, commission rates are always negotiable between seller and agent.

Q2: Who pays the commission?
A: Typically the seller pays the commission from the sale proceeds.

Q3: Are there additional fees?
A: In NSW, GST (10%) is added to the commission. In California, there may be additional administrative fees.

Q4: How is commission split?
A: Typically split between listing and buyer's agents (e.g., in California, 2.5%-3% to each).

Q5: Are there fixed-fee alternatives?
A: Some discount brokers offer flat-fee services instead of percentage-based commissions.