Realtor Commission Rate Calculator
Calculate total real estate agent fees and your net proceeds from a home sale.
Understanding Realtor Commissions
When selling a home, one of the most significant costs is the real estate agent commission. Traditionally, the seller pays the total commission, which is then split between the listing agent (representing the seller) and the buyer's agent.
How the Calculation Works
The calculation is based on the final sales price of the home, not the listing price. The standard formula used by this calculator is:
- Total Commission: (Home Sale Price × (Commission Rate / 100)) + Fixed Fees
- Net Proceeds: Home Sale Price – Total Commission – Fixed Fees
If you sell your home for $500,000 with a 6% total commission rate:
– Total Commission: $30,000
– Split (usually 3% each): $15,000 to Listing Agent, $15,000 to Buyer Agent.
– Your Net (before other closing costs): $470,000.
Are Commission Rates Negotiable?
Yes. While 5% to 6% is common in many markets, commission rates are not set by law. Sellers can negotiate these rates with their listing agent. Factors that might influence the rate include the local market competition, the value of the home, and the level of marketing service provided by the brokerage.
Who Typically Pays?
In most traditional real estate transactions in the United States, the seller pays the entire commission. This amount is deducted from the proceeds of the sale at the closing table. However, recent legal changes and market shifts are making "flat fee" listings and buyer-paid commissions more common in certain areas.