1. What is Co-op Commission?

The co-op commission is the compensation paid to the buyer's agent by the listing broker in a real estate transaction. In California, this is typically a percentage of the sale price negotiated between the listing agent and seller.

2. How the Calculator Works

The calculator uses this simple formula:

Where:

• Sale Price — The final selling price of the property in USD
• Co-op Rate — The percentage rate offered to the buyer's agent (typically 2.5-3% in California)

3. California Co-op Commission Standards

Details: While commission rates are always negotiable, the standard co-op commission in California typically ranges from 2.5% to 3% of the sale price. This rate is specified in the MLS listing and forms part of the seller's agreement with their listing agent.

4. Using the Calculator

Tips: Enter the sale price of the property and the co-op commission rate being offered. The calculator will instantly compute the dollar amount the buyer's agent would receive from the transaction.

5. Frequently Asked Questions (FAQ)

Q1: Is the co-op commission rate fixed in California?
A: No, all commission rates are negotiable between the seller and their listing agent. However, 2.5-3% is typical for the buyer's agent share.

Q2: Who pays the co-op commission?
A: The seller pays the total commission (typically 5-6% total), which is then split between the listing broker and buyer's broker.

Q3: Can the co-op commission be less than 2.5%?
A: Yes, but lower rates may make some buyer's agents less likely to show your property to their clients.

Q4: Is the commission calculated on the sale price or loan amount?
A: Commission is always calculated on the actual sale price of the property, not the loan amount.

Q5: When is the co-op commission paid?
A: The commission is paid at closing from the seller's proceeds, distributed through the brokers.