1. What is Co-op Commission?

The co-op commission is the compensation paid to the buyer's agent by the listing broker. It's typically a percentage of the sale price and is agreed upon in the listing agreement between the seller and listing broker.

2. How the Calculator Works

The calculator uses the simple formula:

Where:

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

3. Importance in Real Estate

Details: The co-op commission structure incentivizes buyer's agents to show properties to their clients and facilitates cooperation between brokers in the MLS system.

4. Using the Calculator

Tips: Enter the sale price in dollars and the co-op rate percentage (typically between 2.5-3%). The calculator will instantly compute the commission amount.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical co-op commission rate?
A: Standard rates are usually 2.5-3% of the sale price, though this can vary by market and property type.

Q2: Who pays the co-op commission?
A: The seller pays the total commission, which is then split between listing and buyer's brokers according to their agreement.

Q3: Is the co-op commission negotiable?
A: Yes, the rate is negotiable between the seller and listing broker when signing the listing agreement.

Q4: How does this differ from total commission?
A: Total commission includes both the listing broker's share and the co-op commission for the buyer's broker.

Q5: When is the commission paid?
A: Commission is paid at closing from the seller's proceeds, after the sale is finalized.