1. What is Realtor Commission?

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

2. How Commission is Calculated

The calculator uses the standard commission formula:

Where:

• Sale Price — Final selling price of the property
• Commission Rate — Percentage agreed between seller and agent

3. Typical Commission Rates

Ontario: Typically 4-5% of sale price (plus HST)
California: Typically 5-6% of sale price
Note: Rates are negotiable and may vary by property type and market conditions.

4. Using the Calculator

Tips: Enter the sale price in local currency (CAD for Ontario, USD for California) and the commission rate as a percentage (e.g., 5 for 5%).

5. Frequently Asked Questions (FAQ)

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

Q2: Are commissions negotiable?
A: Yes, commission rates are always negotiable between the seller and their listing agent.

Q3: Does this include HST in Ontario?
A: No, this calculator shows pre-tax commission. Add 13% HST for the total amount payable in Ontario.

Q4: How is commission split between agents?
A: The total commission is typically split 50/50 between listing and buying brokerage, then further split with individual agents.

Q5: Are there flat-fee alternatives?
A: Some brokerages offer flat-fee or discounted services, especially for higher-priced properties.