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:

• \( Sale\ Price \) — Final selling price of the property
• \( \%\ Rate \) — Agreed commission percentage (as decimal)

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

3. Importance of Commission Calculation

Details: Understanding commission calculations helps both realtors and clients plan finances, negotiate rates, and understand the costs involved in real estate transactions.

4. Using the Calculator

Tips: Enter the sale price in USD and the commission percentage (e.g., enter 5 for 5%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical realtor commission rate?
A: Standard rates are typically 5-6% of the sale price, but this can vary by market and is negotiable.

Q2: Who pays the realtor commission?
A: Typically the seller pays the commission, which is then split between the listing and buyer's agents.

Q3: Is commission always a percentage of sale price?
A: While percentage-based is most common, some agents may work for flat fees or different structures.

Q4: Can commission rates be negotiated?
A: Yes, commission rates are always negotiable between the agent and client.

Q5: How is the commission split between agents?
A: The total commission is typically split 50/50 between listing and buyer's agents, but splits can vary.