Home
Back
Buyer Agent Commission Formula:
| From: | To: |
The Buyer Agent Commission is the fee paid to the real estate agent representing the buyer in a property transaction. Typically, this commission is paid by the seller as part of the overall commission split between listing and buyer agents.
The calculator uses the following simple formula:
Where:
Explanation: The formula calculates the dollar amount the buyer's agent will receive based on the sale price and agreed commission rate.
Details: Understanding the buyer agent commission helps both buyers and sellers anticipate transaction costs and ensures proper compensation for real estate professionals involved in the transaction.
Tips: Enter the sale price in dollars and the commission rate as a percentage (typically between 2-3% for the buyer's agent portion). The calculator will compute the exact dollar amount.
Q1: Who typically pays the buyer agent commission?
A: In most transactions, the seller pays both the listing agent's and buyer agent's commissions from the sale proceeds.
Q2: What is a typical commission rate for buyer agents?
A: The total commission is typically 5-6% of the sale price, with half (2.5-3%) going to the buyer's agent.
Q3: Can the commission rate be negotiated?
A: Yes, commission rates are always negotiable between the seller and their listing agent, which affects what's offered to the buyer's agent.
Q4: Are there situations where the buyer pays their agent's commission?
A: In some cases (like for-sale-by-owner or certain discount brokerages), the buyer may need to pay their agent directly if the seller isn't offering compensation.
Q5: How is the commission split between agents?
A: The total commission is typically split between the listing broker and buyer's broker, who then split it further with their respective agents.