1. What is Co-op Commission?

The co-op commission is the payment made to a cooperating broker (the buyer's agent) in a real estate transaction. In Australia, this is typically a percentage of the sale price agreed upon between listing and cooperating brokers.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Sale Price — The final selling price of the property in AUD
• Co-op Rate — The agreed commission percentage between brokers

Explanation: The calculation multiplies the sale price by the commission rate (converted from percentage to decimal).

3. Importance of Co-op Commission Calculation

Details: Accurate commission calculation ensures proper compensation for cooperating brokers and helps maintain professional relationships in the real estate industry.

4. Using the Calculator

Tips: Enter the sale price in AUD and the agreed co-op rate as a percentage. Both values must be positive numbers (rate typically between 1-5% in Australia).

5. Frequently Asked Questions (FAQ)

Q1: What's a typical co-op rate in Australia?
A: Rates vary but typically range from 1.5% to 3% of the sale price, depending on location and property type.

Q2: Is co-op commission negotiable?
A: Yes, commission rates are always negotiable between the listing agent and the seller.

Q3: Who pays the co-op commission?
A: The seller pays the total commission, which is then split between listing and cooperating brokers.

Q4: Are commissions inclusive of GST?
A: In Australia, commissions are typically quoted as GST inclusive, but this should be specified in the agreement.

Q5: How is this different from total commission?
A: Total commission includes both the listing broker's and cooperating broker's shares, while co-op commission refers only to the buyer's agent portion.