The commission for the real estate dealer is a key figure to consider while buying or selling real estate. The real estate agents get a commission on the property they sell. The overall commission is divided among the agent who worked for the seller and the agent who is on behalf of the buyer. The market usually sets the amount of commission, sometimes the area also defines the amount, but it is usually between 5 percent and 7 percent of the sales price.
The commission amount should be discussed before the selling procedure. Negotiations on this amount before you sign an agreement are recommended because it may rise to 10 percent if two people are sharing the commission.
Determine the property’s real gross sale price. The commission should be given the actual property price, not after further proceedings. Remember If an agent is working with a broker or a franchise such then a portion of the commission to go to the company. Most commissions are based on the price of the lease and take some percentage of the lease value. Consider the amount of money you are throwing for commission as you will be given to the agent so think about the worth of extra percentage.
To ease the process of commission calculation a real estate commission calculator is developed in excel that calculates commissions automatically. It also marks the difference between selling with an agent and selling on my own. More templates are available online to calculate your very own real estate agent commission with fully customizable options.
How does it work?
The calculator is very simple as you will find it very easy to make the calculations. We suggest to download the template and keep it safe on your smartphone for quick calculations. For this, you must have PolarisOffice installed on your phone.
Okay as you can see on the first line that what is the sale price of the property? Let say I have mentioned $1,000 to do the calculations for you. On the next line, it is mentioned to input Agent’s commission percentage and for this, I have written 5.00%. In some cases, there might be another agent working on your client’s behalf or s/he may be a business partner of yours you can calculate the commission for him/her too. For this just select YES/NO from the drop-down. The rest of the calculations you see are done by itself.
You can see the commission has been calculated for you. So, this is how it works. Isn’t it simple?
File: Excel (.xlsx) 2007/10
Size 17 Kb | Download