How is cooperating agent compensation (commission) most commonly calculated?
Cooperating agent compensation (commission) is most commonly calculated as a percentage of the “gross” sale price and not the “net” sale price.
For example, if an owner agrees to sell a house for $300,000 and agrees to provide a “$10,000 seller concession” (money back to the buyer at time of closing), the cooperating agent compensation is calculated of the “gross” sale price ($300,000) and not the “net” sale price ($290,000).