1. What Are Realtor Fees?

Realtor fees, also known as real estate commission, are the fees paid to real estate agents for their services in selling a property. These fees typically range from 5% to 6% of the final sale price of the home.

2. How Are Realtor Fees Calculated?

The calculator uses the standard realtor fee formula:

Where:

• \( Price \) — The final sale price of the property
• \( 5\% \text{ to } 6\% \) — Standard commission rate (typically split between buyer's and seller's agents)

Explanation: The commission is calculated as a percentage of the home's sale price and is usually paid by the seller at closing.

3. Understanding the Costs

Details: While 5-6% is standard, fees can sometimes be negotiated. The commission is typically split between the listing agent and buyer's agent, with each receiving 2.5-3%.

4. Using the Calculator

Tips: Enter your home's expected sale price and the commission percentage (default is 5.5%). The calculator will estimate your total realtor fees.

5. Frequently Asked Questions (FAQ)

Q1: Are realtor fees negotiable?
A: Yes, commission rates are not set by law and can sometimes be negotiated, especially in competitive markets.

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

Q3: Are there alternatives to paying 5-6%?
A: Options include flat-fee MLS services, discount brokers, or for-sale-by-owner (FSBO), but these require more seller involvement.

Q4: What services are included in realtor fees?
A: Fees typically cover marketing, showings, negotiations, paperwork, and guidance through the closing process.

Q5: When are realtor fees paid?
A: Fees are deducted from the sale proceeds at closing and paid through the escrow or title company.