1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents or brokers for their services in facilitating a property transaction. In the Philippines, this is typically a percentage of the total sale price of the property.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• \( Sale\ Price \) — The final agreed price of the property (in PHP)
• \( Commission\ Rate \) — The percentage rate agreed between agent and client (typically 3-5%)

3. Typical Commission Rates in Philippines

Standard Rates: In the Philippines, real estate commissions typically range from 3% to 5% of the selling price, though this can vary based on:

• Property type and value
• Agent-broker agreements
• Market conditions
• Negotiated terms

4. Using the Calculator

Instructions: Enter the property sale price in Philippine Pesos (PHP) and the commission rate (as a percentage). The calculator will compute both the commission amount and the total amount (sale price + commission).

5. Frequently Asked Questions (FAQ)

Q1: Who pays the commission in the Philippines?
A: Typically the seller pays the commission, though this can be negotiated. The commission is usually split between the listing agent and buyer's agent.

Q2: Is the commission rate negotiable?
A: Yes, commission rates are often negotiable between the agent and client, especially for high-value properties.

Q3: Are there VAT or taxes on commissions?
A: Yes, in the Philippines, real estate commissions are subject to 12% VAT and may have other tax implications.

Q4: What's included in the commission?
A: The commission covers marketing, showing the property, negotiations, paperwork, and other services provided by the agent.

Q5: How is commission split among agents?
A: The total commission is typically split between the listing broker and selling broker, often 50-50, then each broker splits with their agent according to their agreement.