1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for their services in facilitating property sales. In both NSW (Australia) and Kenya, 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 selling price of the property
• \( Commission\ Rate \) — Agreed percentage rate between seller and agent

Example: For a $500,000 property at 2.5% commission rate, the calculation would be $500,000 × 0.025 = $12,500 commission.

3. Typical Commission Rates

NSW, Australia: Typically ranges from 1.5% to 3.5% of sale price, often with a minimum fee. Rates are negotiable and may include GST.

Kenya: Standard rates are usually between 5% to 7% of sale price, though this can vary by agency and property value.

4. Using the Calculator

Instructions: Enter the property sale price, commission rate percentage, and select your location (NSW or Kenya). The calculator will show the commission amount in the appropriate currency.

5. Frequently Asked Questions (FAQ)

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

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

Q3: Does the commission include GST in NSW?
A: In NSW, GST of 10% is usually added to the commission amount (not included in this calculator).

Q4: Are there fixed-fee alternatives in Kenya?
A: Some agencies offer fixed-fee services, but percentage-based commission remains most common for high-value properties.

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