Rent Ready Costs
Closing Costs at Sale
Single Input Deal Analysis

Real Estate Commission

The agent commission rate paid when selling the property.

Example Result

Sample Data
6.00%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Real Estate Commission Formula

User Input (%)
User Input (%)
6.00%

Where to Find This Value

Here's where you can find the value for Real Estate Commission:

Listing Agreement

Your listing agreement with the real estate agent specifies the commission rate

Agent Negotiation

Commission is negotiable; typically 5-6% split between buyer and seller agents

Used to Calculate

Real Estate Commission is used as an input for these calculations:

Profit If Sold Today
Deal Analysis
-$42,350

Why It Matters

Real estate commissions are the largest transaction cost when selling. On a $500,000 sale at 6%, commissions are $30,000 — money that reduces your profit and overall return. Factor commissions into all hold/sell analysis and projected sale scenarios. Even a 1% commission reduction saves $5,000 on a $500,000 sale.

Detailed Explanation

Real Estate Commission is the percentage of the sale price paid to real estate agents when you sell the property. Traditionally 5–6% (split between buyer's and seller's agents), commissions have been evolving with new regulations and business models. Some sellers negotiate lower rates, use flat-fee brokers, or sell directly. This cost is deducted from gross sale proceeds when calculating net profit from a sale.

Example

Sample Result
6.00%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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