How to Calculate Brokerage Commission

Sellers typically pay both the listing and buyer's agent commissions.

Step

Ask your listing agent how much their broker charges. Each broker is different, but most charge an amount that is considered reasonable and customary for the market and area. For example, if the typical commission for a buyer's agent is 2.5 percent or 3 percent, listing brokers usually charge twice that amount -- 5 or 6 percent -- because the amount must cover both the listing and buyer's agent commissions.

Step

Multiply the commission fee by your home's asking price. For example, if paying a 6-percent commission on a $200,000 sale price, multiply 0.06 by 200,000. The result is 12,000, or a $12,000 commission to sell your home.

Step

Ask your mortgage broker for the loan origination fee. Federal mortgage disclosure laws require brokers to provide the origination fee within three business days of your application on a Good Faith Estimate. The loan origination fee is the commission you pay the broker for the service of originating, or making the loan. A 1-percent origination fee is typical; however, you can negotiate a lower fee, and higher fees may be subject to caps based on loan type.

Step

Multiply the mortgage broker's origination fee, or commission, by your loan amount. For example, if you pay a 1-percent origination fee for a $200,000 loan, you pay the broker $2,000.