How Do You Calculate Real Estate Commissions?
When planning to sell your home or property, you should consider the commission you will pay to the real estate agent or broker. Calculating the real estate commission can be confusing. Take it one step at a time and you’ll have it all figured out. Draw up a contract. The contract should contain all the terms of the sale or purchase of the property. One of the terms listed on the contract is the real estate commission. State the real estate commission percentage to be paid clearly in the contract. The commission percentage is calculated on the sales price of the property, unless otherwise stated in the contract. Normally, there is a 6-percent commission paid, usually by the seller. The normal split of a commission is for 3 percent to go to the seller’s agent and 3 percent to go to the buyer’s agent. A further split of each 3 percentage may have 1 1/2 percent going to the seller’s broker and the same amount to the buyer’s broker. Discuss the terms of any sales contract prior to finalizi
