- How is a real estate commission typically split?
- A standard real estate commission is 5 to 6% of the sale price, split between the listing agent and the buyer's agent (often 50/50). Each agent then splits their portion with their brokerage at a rate negotiated in their independent contractor agreement, often 70/30 or 80/20 in the agent's favor.
- Can commission splits be customized?
- Yes. Commission splits are negotiable. Buyer and seller agents may agree to unequal splits; team structures often involve a team leader taking a percentage off the top; some brokerages use a cap model where the agent keeps 100% after paying a fixed annual fee.
- What if the splits do not add up to 100%?
- The calculator requires splits to total exactly 100% to calculate accurate payouts. If your splits sum to less than 100%, unallocated commission may represent a brokerage override or referral fee. Adjust the party splits to account for all recipients of the commission.
- How is commission calculated on a sale?
- Total Commission = Sale Price x Commission Rate / 100. Each party's payout = Total Commission x their split percentage / 100. For example, a $500,000 sale at 5% generates $25,000 total commission. A 50% split gives each side $12,500.
