1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents for their services in facilitating the sale of a property. It's typically a percentage of the final sale price and is negotiated between the seller and the agent before listing the property.

2. How Commission is Calculated

The calculator uses the standard commission formula:

Where:

• \( \text{Sale Price} \) — Final selling price of the property
• \( \text{Commission Rate} \) — Agreed percentage rate between seller and agent

3. Typical Commission Rates

Queensland, Australia: Typically ranges from 2.5% to 3.5% + GST of the sale price.
California, USA: Usually around 5-6% of the sale price, typically split between listing and buyer's agents.

4. Using the Calculator

Instructions: Enter the property sale price, commission rate percentage, and select your currency (AUD for Queensland or USD for California). The calculator will instantly compute the 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: Are there additional fees beyond commission?
A: In Queensland, GST (10%) is added to the commission. In California, there may be additional administrative fees.

Q4: What's the difference between QLD and CA commissions?
A: Queensland commissions are typically lower percentage-wise but have GST added. California commissions are higher but usually include all fees.

Q5: How is commission split between agents?
A: Typically 50/50 between listing and buyer's agents, but this can vary based on agreements.