Real Estate Commission Calculator
Calculate realtor commission fees, agent splits between listing and buyer agents, and seller net proceeds from home sales.
How Real Estate Commissions Work
Real estate commissions are fees paid to real estate agents and brokerages for representing buyers and sellers in property transactions. Typically paid by the home seller out of the total proceeds at closing, the total commission is usually a negotiated percentage of the home's final selling price.
Commission Structure and Splits
In a traditional property transaction:
- Total Commission: Ranging typically between 4% and 6% of the final sale price.
- Listing Agent / Buyer Agent Split: The total fee is divided between the seller's listing agent and the buyer's agent (commonly a 50/50 split).
- Brokerage Split: Each agent then splits their portion with their managing brokerage according to their individual employment agreement.
Frequently Asked Questions
Who pays the real estate commission?
In most residential transactions, the seller pays the entire commission fee out of the proceeds of the sale at closing, unless negotiated otherwise in the purchase agreement.
Are real estate commissions negotiable?
Yes, real estate commission rates are fully negotiable between the seller and the listing broker prior to signing the listing agreement.
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