1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents for their services in facilitating the sale or purchase of a property. It's typically calculated as a percentage of the final sale price and is paid by the seller at settlement.

2. How Commission is Calculated

The standard commission formula is:

Where:

• \( Sale\ Price \) — The final price the property sells for
• \( Commission\ Rate \) — The agreed percentage rate (typically 2-3%)

Note: Some agents may use tiered commission structures where the percentage changes at certain price points.

3. Typical Commission Rates

NSW, Australia: Typically ranges from 1.5% to 3.5% of the sale price, often negotiable especially for higher-value properties.

Canada: Usually between 3% to 7% of the first $100,000 and 1-3% on the remaining balance, split between buying and selling agents.

4. Using the Calculator

Instructions: Enter the sale price of the property, the commission rate percentage, and select your region to calculate the estimated commission amount.

5. Frequently Asked Questions (FAQ)

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

Q2: Who pays the commission?
A: Typically the seller pays the commission, which is deducted from the sale proceeds at settlement.

Q3: Does GST apply to real estate commission?
A: In Australia, GST of 10% applies to the commission amount. In Canada, HST/GST applies depending on the province.

Q4: Are there fixed-fee alternatives?
A: Some agents offer fixed-fee services, particularly for lower-priced properties or more experienced sellers.

Q5: What's included in the commission?
A: Typically includes marketing, photography, open houses, negotiations, and paperwork. Always confirm with your agent.