A real estate commission is the fee paid for arranging the sale of real property. A commission is typically paid by the seller. The commission rate varies depending on the type of property sold and the transaction’s total price.
When calculating real estate commission, first determine the commission per transaction. This is the percentage of the seller’s total transaction value to each agent.
For our example, let’s say that the buyer agent commission on a deal is 3%. This means that 3% of the sales price (let’s use $300,000) will be paid to your brokerage. Upon closing, $9,000 in commission will be paid to your broker. Read more in our article, “How Do You Calculate Real Estate Commission?”.
The following calculator serves only as an estimate.