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Commission
Commission in real estate sales is the amount of money that a client pays a broker for his services. The amount is based on a percentage of the sale price. There are several people who split the commission. A property that is listed by one agent may be sold by another. Therefore, at least two agents are often involved in a sale. No matter how many agents are involved, the client only pays one commission and the listing broker handles the split. Commission is negotiable in a listing contract; however, many brokers have a suggested percentage that they like to charge. At the time of the listing, a good faith estimate of costs will be given to the seller. The estimated commission will be listed at the agreed upon percentage multiplied by the listing price. The actual commission will be adjusted according to the sale price.