Calculate the total commission paid to real estate agents based on the sale price and commission rate.
Your Estimated Realtor Fee: $0.00
Understanding Realtor Fees
When a property is sold, a commission is typically paid to the real estate agents involved. This commission is usually split between the seller's agent (listing agent) and the buyer's agent. The total commission is a percentage of the final sale price of the property.
The commission rate is negotiated between the seller and their listing agent. While there isn't a legally mandated rate, the industry standard often hovers around 5% to 6% of the sale price. This total commission is then usually divided, often 50/50, between the listing agent's brokerage and the buyer's agent's brokerage.
How the Calculator Works
This Realtor Fee Calculator simplifies the process of estimating these costs. It takes two key pieces of information:
Property Sale Price: The final agreed-upon price at which the property is sold.
Total Commission Rate: The agreed percentage of the sale price that will be paid as commission to all agents involved. This is the rate applied to the sale price before any split.
For example, if a property sells for $500,000 and the agreed-upon total commission rate is 5%, the calculation would be:
$500,000 × (5 / 100) = $500,000 × 0.05 = $25,000
This $25,000 is the total commission paid. It is then typically split between the listing agent and the buyer's agent, and further divided between the agents and their respective brokerages.
Key Considerations:
Negotiability: Commission rates are negotiable. Sellers should discuss and agree on a rate with their listing agent.
Market Conditions: Commission rates can sometimes be influenced by local market conditions and the services offered by the agent.
Dual Agency: In some rare cases, one agent may represent both the buyer and the seller (dual agency), which can affect commission structures.
Discounts: Some brokerages or agents might offer reduced commission rates for specific situations (e.g., multiple properties, referrals, discounts for certain professions).
Using this calculator can help you budget and understand the approximate commission costs associated with selling a property.
function calculateRealtorFee() {
var salePrice = parseFloat(document.getElementById("salePrice").value);
var commissionRate = parseFloat(document.getElementById("commissionRate").value);
var resultElement = document.getElementById("result").querySelector("span");
if (isNaN(salePrice) || isNaN(commissionRate) || salePrice <= 0 || commissionRate <= 0) {
resultElement.textContent = "$0.00";
alert("Please enter valid positive numbers for Sale Price and Commission Rate.");
return;
}
var totalCommission = salePrice * (commissionRate / 100);
// Format the result to two decimal places
resultElement.textContent = "$" + totalCommission.toFixed(2);
}