1. What Is Realtor Commission?

Realtor commission is the fee paid to real estate agents for their services in facilitating property transactions. The commission is typically calculated as a percentage of the final sale price and is split between the buyer's and seller's agents.

2. How Does The Calculator Work?

The calculator uses the commission formula:

Where:

• \( Sale Price \) — Final selling price of the property
• \( Rate \) — Commission rate percentage (typically 5.5% average for 2025 split)

Explanation: The commission is calculated by multiplying the sale price by the commission rate percentage, then converting to the actual commission amount.

3. Importance Of Commission Calculation

Details: Accurate commission calculation is essential for real estate professionals to determine their earnings, for sellers to understand net proceeds, and for proper financial planning in property transactions.

4. Using The Calculator

Tips: Enter the sale price in your local currency and the commission rate as a percentage. The average commission rate for 2025 is 5.5%, which is typically split between buyer and seller agents.

5. Frequently Asked Questions (FAQ)

Q1: What is the average commission rate for realtors?
A: The average commission rate is typically around 5.5% for 2025, though this can vary by market, property type, and negotiation.

Q2: How is the commission split between agents?
A: The total commission is usually split between the listing agent and buyer's agent, often 50/50 or according to the agreement between brokers.

Q3: Are commission rates negotiable?
A: Yes, commission rates are generally negotiable between the client and the real estate agent or brokerage.

Q4: What factors affect commission rates?
A: Market conditions, property value, location, agent experience, and services provided can all influence commission rates.

Q5: Who pays the realtor commission?
A: Typically, the seller pays the commission from the proceeds of the sale, which is then split between the involved agents.