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Commission Formula:
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Real estate agent commission is the fee paid to real estate agents for their services in facilitating property sales. This commission is typically a percentage of the final sale price and is shared between the listing agent and buyer's agent.
The calculator uses the commission formula:
Where:
Explanation: The commission is calculated by multiplying the sale price by the commission rate (converted from percentage to decimal).
Details: Understanding commission costs is essential for sellers to determine net proceeds from property sales and for buyers to understand transaction costs. Commission rates typically range from 5-6% in the US market for 2025.
Tips: Enter the property sale price in dollars and the commission rate as a percentage. Both values must be positive numbers. The average commission rate in the US for 2025 is typically 5-6%.
Q1: What is the average real estate commission rate?
A: The average commission rate in the US for 2025 typically ranges from 5% to 6% of the sale price, though this can vary by location and market conditions.
Q2: Who pays the real estate commission?
A: Typically, the seller pays the commission, which is then split between the listing agent and the buyer's agent according to their agreement.
Q3: Are commission rates negotiable?
A: Yes, commission rates are generally negotiable between the seller and the real estate agent or brokerage.
Q4: What services are included in the commission?
A: Commission typically covers marketing, showing the property, negotiating offers, handling paperwork, and coordinating the closing process.
Q5: How is commission split between agents?
A: The total commission is usually split between the listing agent's brokerage and the buyer's agent's brokerage, with each agent receiving a portion.