1. What is California Agent Commission?

The standard real estate agent commission in California is typically 6% of the property sale price, split between the buyer's and seller's agents. This calculator helps estimate the total commission amount.

2. How Does the Calculator Work?

The calculator uses the standard California commission formula:

Where:

• \( Price \) — Property sale price in USD
• \( 0.06 \) — Standard 6% commission rate

Explanation: The calculation is straightforward - multiply the property price by 6% (0.06) to get the total commission amount.

3. Importance of Commission Calculation

Details: Understanding commission costs is crucial for both sellers (to estimate net proceeds) and buyers (to understand agent compensation structure).

4. Using the Calculator

Tips: Enter the property price in USD. The calculator will automatically compute the 6% commission. All values must be valid (price > 0).

5. Frequently Asked Questions (FAQ)

Q1: Is 6% commission mandatory in California?
A: No, commission rates are negotiable, but 6% is the typical standard rate in California.

Q2: How is the commission split?
A: Typically 3% to listing agent and 3% to buyer's agent, but this can vary based on agreement.

Q3: Are there additional fees?
A: This calculator shows only agent commission. There may be additional closing costs and fees.

Q4: Can commission rates be lower?
A: Yes, some discount brokers offer lower rates, especially for higher-priced properties.

Q5: Is the commission tax deductible?
A: For sellers, it's typically deducted from the sale price. Buyers cannot deduct commission.