1. What is Real Estate Commission?

In California real estate transactions, commission is typically paid by the seller to the listing and buyer's agents. The total commission is usually a percentage of the final sale price of the property.

2. How Commission is Calculated

The standard commission formula is:

Where:

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

Note: The total commission is often split between listing and buyer's agents (typically 50/50).

3. Typical Commission Rates in California

Details: While commission rates are negotiable, standard rates in California typically range from 5% to 6% of the sale price. In high-value markets, rates may be lower (4-5%).

4. Using This Calculator

Instructions: Enter the property sale price in USD and the commission rate percentage (typically 5-6%). The calculator will show both the commission amount and the net proceeds after commission.

5. Frequently Asked Questions (FAQ)

Q1: Who pays the real estate commission in California?
A: Typically the seller pays the commission, which is deducted from the sale proceeds at closing.

Q2: Is 6% commission standard in California?
A: While common, commission rates are always negotiable. Many factors influence the rate including property type, market conditions, and services provided.

Q3: How is commission split between agents?
A: The total commission is typically split between listing and buyer's agents (often 50/50), but splits can vary based on agreements.

Q4: Are there alternatives to percentage-based commissions?
A: Some brokers offer flat-fee or tiered commission structures, especially for high-value properties.

Q5: When is commission paid?
A: Commission is paid at closing from the escrow account, after all sale conditions are met.