How this number is made
Commission is a percent of the price, then often split between the two sides, and split again inside a brokerage. This page does the first two splits. Your brokerage’s cut of your side is not included unless you lower your side’s share.
- The commission percent is whatever the listing agreement says.
- Your side’s share is 50 if the two sides split equally. It is not always 50.
Formula
Total commission = price × rate. Your side = total × your share.
Worked example
With the figures already in the form, total commission is $22,500.
Questions
Is 6% required?
No. The percent is negotiated. Type the one in the agreement.
Is this the agent’s take-home?
No. A brokerage split, franchise fee, and tax still come out of the side’s share.