1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for facilitating property sales. In NSW, Australia and the Philippines, this is typically a percentage of the final sale price negotiated between the seller and agent.

2. How Commission is Calculated

The standard commission formula is:

Where:

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

Example: For a $500,000 property with 2.5% commission rate, the agent's fee would be $12,500.

3. Typical Commission Rates

NSW, Australia: Typically ranges from 1.5% to 3.5% of sale price, often with a minimum fee.
Philippines: Usually between 3% to 5%, sometimes higher for luxury properties.

4. Using the Calculator

Instructions: Enter the property sale price, commission rate percentage, and select location. The calculator will show the agent's fee in the appropriate currency.

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: Does GST apply to commissions?
A: In NSW, GST of 10% applies to commissions on top of the calculated fee.

Q4: Are there fixed fee alternatives?
A: Some agents offer fixed-fee services, especially for lower-priced properties.

Q5: When is commission paid?
A: Commission is paid at settlement when the property transaction is completed.