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 a percentage of the final sale price and is paid by the seller unless otherwise negotiated.

2. How Commission is Calculated

The calculator uses the standard commission formula:

Where:

• \( Sale\ Price \) — The final selling price of the property
• \( Commission\ Rate \) — The agreed percentage rate for the agent's services

Explanation: The commission is calculated by multiplying the sale price by the commission rate percentage.

3. Typical Commission Rates

Queensland, Australia: Typically ranges from 2.5% to 5% of the sale price, often with a minimum fee.
India: Usually between 1% to 3% of the property value, though rates can vary by city and property type.

4. Using the Calculator

Tips: Enter the property sale price in your local currency, the commission rate percentage, and select your region. All values must be valid (price > 0, rate between 0-100).

5. Frequently Asked Questions (FAQ)

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

Q2: Are there additional fees besides commission?
A: There may be marketing fees, administrative costs, or other charges - always ask for a complete breakdown of fees.

Q3: Who pays the commission in a property sale?
A: Typically the seller pays the commission, but this can be negotiated differently in some cases.

Q4: Are commission rates regulated?
A: In Queensland, rates aren't regulated but must be clearly disclosed. In India, rates vary by state and local practices.

Q5: Do buyers pay commission?
A: Normally no, unless specifically agreed in the contract. Buyers' agents may charge their own fees separately.