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 split between the buyer's and seller's agents.

2. How Commission is Calculated

The commission is calculated using this simple formula:

Where:

• Sale Price — The final selling price of the property
• Commission Rate — The agreed percentage rate (e.g., 5% or 6%)

Example: For a $300,000 home with 5% commission rate, the total commission would be $15,000.

3. Typical Commission Rates

Details: While commission rates are negotiable, they typically range between 5-6% in the United States, often split 50/50 between the listing and buying agents.

4. Using the Calculator

Tips: Enter the property sale price and commission rate percentage. The calculator will instantly show the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Who pays the realtor commission?
A: Typically the seller pays the commission, which is deducted from the sale proceeds at closing.

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

Q3: How is the commission split?
A: The total commission is usually split between the listing broker and buyer's broker, often 50/50.

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: Are commissions taxable?
A: Yes, real estate commissions are considered taxable income for the agents and brokerages.