Commission Formula:
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Real estate commission is the fee paid to real estate agents for their services in facilitating the sale of a property. In Western Australia, this is typically calculated as a percentage of the final sale price.
The standard commission formula is:
Where:
Example: For a $500,000 property at 2.32% commission: $500,000 × 0.0232 = $11,600
Details: In Western Australia, commission rates typically range between 2% to 3% of the sale price, with 2.32% being a common rate. Rates may vary based on:
Tips: Enter the property sale price in AUD and the commission rate as a percentage (e.g., 2.32 for 2.32%). The calculator will compute the total commission payable.
Q1: Is commission negotiable in WA?
A: Yes, commission rates are always negotiable between the seller and the real estate agent.
Q2: Are there additional fees besides commission?
A: There may be additional marketing fees or administrative costs, so always review your contract carefully.
Q3: When is commission paid?
A: Commission is typically paid at settlement from the sale proceeds.
Q4: Do buyers pay commission in WA?
A: No, the seller pays the commission to their listing agent in Western Australia.
Q5: How does GST apply to real estate commission?
A: GST of 10% applies to the commission fee in addition to the calculated amount.