Real Estate Commission Rebate Calculator

This calculator will help you to estimate the cost of selling your home -- including the factoring in of the agent's advertised rebate.

Sale price ($):
Commission percentage (%):
Commission rebate (% of ):
Advertising cost ($):
Commission before rebate:
Commission rebate:
Net commission cost:
Total cost (net-commission plus advertising):

Commission Rebate Calculations

If you've ever been stumped wondering whether the smart financial decision would be to sell your home yourself and risk the insecurity and stress that can cause, or take the easy way out and sell through a realtor, this calculator will help you make a decision based on hard facts and figures. The cost of selling your home will be spit out by this calculator given the correct inputs of sale price, percentage commission, potential commission rebate, and advertising fees. When considering whether or not to go through a realtor, be sure to compare the costs between for sale by owner and via a real estate agency.

What's Behind the Commission

The real estate and agency's commission is essentially their incentive for selling your home as professionally, simply, and quickly as possible at as high a price as they can. The commission rate generally ranges between about 5-6% in most cases, and is also usually negotiable. Buyers who can drive a hard bargain are sometimes able to haggle their real estate agent's commission based upon location, price point, time of year and state of the market. Remember that even if you are able to persuade your agent's commission down one percent, this can mean a savings of thousands of dollars in the end. If you are not willing or able to shell out the full 5-6%, you may also want to consider hiring a discount broker. This agent will not give you the full luxury suite of services offered to you by your more costly real estate agent, but they will get the job done at a minimum and likely only charge you about 3% of the sale cost.

The Real Estate Rebate

In successful sales, there is a rebate that goes back to the buyer as an incentive for purchasing the home and signing the final contracts swiftly and simply. This buyer's rebate or commission rebate is often a percentage of the sale price or of the gross commission. It is transferred to the home buyer at purchase. Everybody wins in the rebate scenario, because the buyer gets rewarded with a financial discount off their new home and the broker saves time and effort on advertising the home for any longer. With the advent of internet real estate advertising, home selling has become a completely different game since the paper signage ads of the 90s, and buyer commission rebates are just one way of the real estate agents giving the buyer a little break as their work as a home promoter has become so much more easy and automated. Because the majority of advertising now takes place virtually, the job of the real estate agent is just that much simpler, but the commission percentage has not dropped accordingly. Advertising costs have also decreased significantly due to the use of online search engines rather than newspapers, catalogs or home buying journals and magazines.

By taking into account the commission rebate percentage as well as the commission itself, prospective sellers can get a clear image of how much cash will stay in their pocket, go towards selling costs, and transfer to the new buyer. Once you have this information, you will be better empowered to shop around for real estate agents whose numbers will fit with your budget.