1. What is Real Estate Agent Commission?

Real estate agent commission is the fee paid to agents for their services in facilitating a property sale. In Queensland and California, this is typically a percentage of the final sale price, negotiated between the seller and the agent.

2. How Commission is Calculated

The commission is calculated using this simple formula:

Where:

• \( \text{Sale Price} \) — Final selling price of the property
• \( \text{Commission Rate} \) — Agreed percentage rate (usually 2-5%)

Example: For a $500,000 property with 3% commission rate, the commission would be $15,000.

3. Typical Commission Rates

Queensland: Typically ranges from 2.5% to 5% of the sale price, often with a sliding scale where the percentage decreases as the sale price increases.

California: Average commission rates are around 5-6%, usually split between the listing agent and buyer's agent.

4. Using the Calculator

Instructions: Enter the sale price of the property in dollars and the agreed commission rate as a percentage. The calculator will instantly compute the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Is commission negotiable in QLD/California?
A: Yes, commission rates are always negotiable between the seller and the agent.

Q2: Who pays the real estate commission?
A: Typically the seller pays the commission, which is deducted from the sale proceeds at settlement.

Q3: Are there fixed-fee alternatives?
A: Some agents offer flat-fee services, but these may include fewer services than full commission arrangements.

Q4: Does GST apply to commissions?
A: In Australia (QLD), GST of 10% is added to the commission. In California, sales tax doesn't apply to real estate commissions.

Q5: How is commission split between agents?
A: Typically the total commission is split between listing and buyer's agents (often 50/50), then each agent shares with their brokerage.