1. What is Realtor Commission?

Realtor commission is the fee paid to real estate agents for their services in facilitating a property sale. It's typically a percentage of the final sale price and is usually split between the buyer's and seller's agents.

2. How Commission is Calculated

The commission is calculated using this simple formula:

Example: For a $300,000 home sale with a 6% commission rate:

• $300,000 × 0.06 = $18,000 total commission
• Typically split 50/50 between buyer's and seller's agents ($9,000 each)

3. Typical Commission Rates

Standard Rates: While negotiable, typical commission rates range from 5% to 6% of the sale price. Rates may vary by:

• Market conditions
• Property type and value
• Local customs
• Agent experience and services provided

4. Using the Calculator

Instructions: Enter the sale price of the property and the commission rate percentage. The calculator will instantly compute the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Who pays the realtor commission?
A: Typically the seller pays the full commission, which is then split between the listing and buyer's agents.

Q2: Are commission rates fixed?
A: No, commission rates are always negotiable between the seller and their listing agent.

Q3: What's included in the commission?
A: The commission covers marketing, showings, negotiations, paperwork, and the agent's expertise throughout the selling process.

Q4: Can I sell without paying commission?
A: Yes, through "For Sale By Owner" (FSBO), but you'll handle all aspects of the sale yourself.

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