Realtor Commission Calculator
Calculation Results
Understanding Realtor Commissions
When selling a home, one of the most significant expenses is the real estate agent commission. Typically paid by the seller, this fee is a percentage of the final sale price and is divided between the listing agent (representing the seller) and the buyer's agent.
How is the Commission Split?
In a standard transaction, a seller might agree to a 5% or 6% total commission. This total amount is often split 50/50 between the two brokerages involved. For example, on a $500,000 sale with a 6% commission:
- Total Commission: $30,000
- Listing Brokerage: $15,000
- Buyer's Brokerage: $15,000
What Does the Commission Cover?
While the percentage may seem high, it covers several professional services including:
- Professional photography and staging advice.
- MLS (Multiple Listing Service) placement.
- Marketing and advertising costs.
- Negotiation expertise and legal paperwork management.
- Showings and open houses.
How to Use This Calculator
To get an accurate estimate of your net proceeds, follow these steps:
- Home Sale Price: Enter the expected or actual price the home will sell for.
- Total Commission: The total percentage agreed upon in your listing contract (usually 4-6%).
- Buyer's Agent Share: The portion of that total commission offered to the agent who brings the buyer.
- Other Fees: Include estimated taxes, title insurance, and escrow fees to see your actual walk-away amount.
Can You Negotiate Realtor Fees?
Yes, real estate commissions are negotiable by law. There is no "set" or "legal" commission rate. Some sellers opt for flat-fee services or discount brokerages, though this may impact the level of marketing and support provided during the transaction.