Real Estate Related Computations and Closing of Transactions

Commission Calculations

Total commission = sale price x commission rate; then follow the money down the chain. Example: a $425,000 sale at 6% earns $425,000 x 0.06 = $25,500. If the listing and selling brokers split 50/50, the listing broker gets $12,750. If the listing sales associate is on a 60% split with the broker, the associate earns $12,750 x 0.60 = $7,650 and the broker keeps $5,100. Sales associates are paid only through their employing broker, never directly by the seller or the other brokerage. To find the rate from dollars, divide: $25,500 / $425,000 = 0.06 = 6%.