How to calculate real estate commission – Commission Calculator
Calculating the commission of a real estate agent is an important step in the process of finding someone to sell your house
The nature of the housing market is such that house prices, commissions, commission structures and types are constantly changing. While we do see agents and agencies offering a fixed price commission, more often we see simple or complex percentage based or hybrid commissions.
Real Estate Agent Commission Calculator
Fill out this form to help calculate your total commission
Why Calculate Real Estate Commission
Both sellers and real estate agents choose to use commission calculators in order to know what the commission will be on the sale of a house. Unless the commission type is a fixed fee, this can not be calculated until an offer has been accepted, however knowing what this rate is going to be is important for both seller and agent.
When negotiating with or soliciting quotes from real estate agents, the calculation of commission is one of the key points to be aware of. Being able to quickly get an accurate figure for what the commission is worth can be very helpful when negotiating commission or filtering quotes.
Depending on the market and the offers received upon the sale of a home, the commission total could move from the expected or quoted amount. With percentage or hybrid commission structures this isn’t a quick calculation you can do on the back of an envelope – a commission calculation is required.
The Aframe Agent Finder Real Estate Commission Calculator
As the New Zealand real estate market begins to wake again after the level 4 lockdown, Aframe are pleased to launch our real estate commission calculator.
Recently we posted our capital gains calculator and received positive feedback along with the request for more calculators and tools. We decided that a commission calculator would be the most useful for agents and sellers
How to use the Aframe Commission Calculator
Enter the following information to calculate commission;
- Goal Sale Price – This is the price you think your home will sell for. Changing this variable will assist with thinking about how commission will change with better than or worse than expected results.
- Commission Type
- Fixed – This is just a single price for commission rather than percentage based
- Percentage – Use this when there is a percentage commission, either a single rate or tiered rates.
- Hybrid – this is for when there is a fixed and percentage component to the commission structure
- Including/Excluding GST
Completing the commission rate sections.
After you select the commission type, new lines for commission rate will appear. For Fixed Rate, only a single figure is needed.
- For Hybrid and Percentage, you can enter many rates by selecting the “+ Add Rate” button.
- Rate lines can be removed by selecting the red X next to the rate
- The first line of a percentage rate is alway set to $0
- If the final line ‘to’ rate is less than the goal sale price, the final rate will apply to the remainder of the goal sale price.