1. What is the Commission Rate Calculator?

The Realtor Commission Rate Calculator helps determine the percentage commission being charged on a property sale in South Africa. It calculates the rate based on the commission amount and the sale price of the property.

2. How Does the Calculator Work?

The calculator uses the commission rate formula:

Where:

• Commission Amount — The fee charged by the realtor (in ZAR)
• Sale Price — The final selling price of the property (in ZAR)

Explanation: The formula calculates what percentage of the sale price goes to the realtor as commission.

3. Importance of Commission Rate Calculation

Details: Understanding commission rates helps both sellers and buyers evaluate the cost of realtor services, compare different agents, and negotiate better deals in the South African property market.

4. Using the Calculator

Tips: Enter the commission amount in ZAR and the sale price in ZAR. Both values must be positive numbers. The calculator will show the commission rate as a percentage.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical commission rate in South Africa?
A: Commission rates in South Africa typically range between 5% and 7% plus VAT, but can vary based on property value and agreement with the realtor.

Q2: Is commission negotiable in South Africa?
A: Yes, commission rates are negotiable. Many factors influence the rate including property value, market conditions, and services provided.

Q3: Who pays the commission in a property sale?
A: In South Africa, the seller typically pays the commission to the estate agent.

Q4: Does the commission include VAT?
A: Commission is subject to 15% VAT in South Africa. The quoted rate may or may not include VAT, so always clarify this.

Q5: Are there fixed commission rates?
A: No, the Estate Agency Affairs Board doesn't prescribe fixed rates. Rates are determined by market forces and negotiation.