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 for the realtor's services

3. Typical Commission Rates

Details: While commission rates are negotiable, they typically range between 5-6% in the United States. This is usually split between the listing agent (2.5-3%) and buyer's agent (2.5-3%).

4. Using the Calculator

Tips: Enter the sale price of the property and the commission rate percentage. The calculator will instantly compute 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 the real estate agent.

Q3: Is the commission rate the same for all properties?
A: Rates may vary based on property type, location, market conditions, and services provided.

Q4: How is the commission split?
A: The total commission is typically split between the listing agent and buyer's agent, with each brokerage then taking a portion.

Q5: Can I sell without paying commission?
A: Yes, through "For Sale By Owner" (FSBO), but you'll need to handle all aspects of the sale yourself.