1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for facilitating a property sale. In Florida, this is typically a percentage of the final sale price, negotiated between the seller and listing agent before the property is marketed.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• Sale Price — Final selling price of the property
• Commission Rate — Agreed percentage (typically 5-6% in Florida)

Example: For a $500,000 home at 6% commission, the total would be $500,000 × 0.06 = $30,000.

3. Florida Commission Rates

Details: While commission rates are negotiable in Florida, the typical range is 5-6% of the sale price. This is usually split between the listing and buyer's agents (often 2.5-3% each).

4. Using the Calculator

Tips: Enter the property's sale price in USD and the agreed commission rate (percentage). The calculator will instantly show the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates fixed in Florida?
A: No, commission rates are always negotiable between the seller and their agent.

Q2: Who pays the commission in Florida?
A: Typically the seller pays the full commission, which is then split between agents.

Q3: Can commission rates vary by property type?
A: Yes, luxury properties or commercial real estate may have different rate structures.

Q4: Are there additional fees beyond commission?
A: Sometimes - there may be administrative fees or other charges specified in the listing agreement.

Q5: How is commission taxed in Florida?
A: Commission is considered ordinary income for agents and is subject to income taxes.