1. What is the Realtor Commission Calculator?

The Realtor Commission Calculator estimates the real estate agent's commission based on the sale price of a property and the agreed commission rate. In California, typical commission rates range from 5% to 6% of the sale price.

2. How Does the Calculator Work?

The calculator uses the commission formula:

Where:

• \( \text{Sale Price} \) — The final selling price of the property (USD)
• \( \text{Commission Rate} \) — The agreed percentage rate (typically 5-6%)

Explanation: The commission is calculated as a percentage of the total sale price, with the rate typically negotiated between the seller and the real estate agent.

3. Importance of Commission Calculation

Details: Understanding the commission structure helps sellers estimate their net proceeds from a sale and helps buyers understand how much of their payment goes to agent fees.

4. Using the Calculator

Tips: Enter the property sale price in USD and the commission rate as a percentage (e.g., 5.5). All values must be valid (price > 0, rate between 0-100).

5. Frequently Asked Questions (FAQ)

Q1: What is the typical commission rate in California?
A: While negotiable, standard rates are typically 5-6% of the sale price, usually split between buyer's and seller's agents.

Q2: Is the commission rate fixed by law?
A: No, commission rates are always negotiable between the seller and the real estate agent or brokerage.

Q3: Who pays the realtor commission?
A: Typically the seller pays the commission, which is deducted from the sale proceeds at closing.

Q4: Are there alternatives to percentage-based commissions?
A: Some agents offer flat-fee or tiered commission structures, though percentage-based remains most common.

Q5: How is the commission split between agents?
A: The total commission is typically split between the listing agent and buyer's agent, often 50/50 but this can vary.