Why agents care
Commission conversations are more explicit than they used to be. Calculators that show the arithmetic without suggesting a rate help keep those conversations clear and compliant.
Glossary term
Real estate commission
Real estate commission is the compensation brokerages receive for representing sellers or buyers, often a percentage of the sale price, set in the listing agreement or buyer agreement. It's negotiable. After the 2024 NAR settlement practice changes, offers of compensation to buyer brokers can't be made on the MLS, and buyer compensation is set in written agreements.
Example
Example: on a $425,000 sale, a negotiated listing-side compensation of 2.75% is $11,687.50 before the brokerage split.
Pairs well with
Calculators that use this term
Related terms
Questions by topic
Real estate commission: common questions
Is there a standard commission rate?
No. Commission is negotiable and varies by agreement.
Where is buyer-agent compensation set now?
In the written buyer agreement, and sometimes through seller concessions negotiated in the offer.
Put these numbers in front of your visitors
Calculators with built-in definitions, free on the Agent plan.