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 (typically 5-6% in the U.S.)

Example: For a $300,000 home with a 6% commission rate, the total commission would be $18,000.

3. Typical Commission Rates

Details: While commission rates are negotiable, standard rates in the U.S. typically range between 5-6% of the sale price. 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 property sale price in dollars and the commission rate as a percentage (e.g., enter 5.5 for 5.5%). The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

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

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 typically split 50/50 between the listing agent's brokerage and buyer's agent's brokerage.

Q4: Can commission rates vary by location?
A: Yes, commission rates can vary by region, market conditions, and property type.

Q5: Are there alternatives to percentage-based commissions?
A: Some brokers offer flat-fee or tiered commission structures, though percentage-based remains most common.