To calculate the latest real estate commission in Boston, start by determining the sale price of the property. The standard commission rate in Boston is typically 5.5% to 6% of the sale price, split between the seller’s listing agent and the buyer’s representing agent. For example, if a property sells for $1,000,000, the total commission would range between $55,000 and $60,000. The seller’s agent usually receives 60% of the total commission (e.g., $33,000 to $36,000), while the buyer’s agent earns 40% (e.g., $22,000 to $24,000). Some agents may negotiate a flat fee instead of a percentage-based rate, often ranging from $10,000 to $20,000 for properties above $1 million.

The commission structure in Boston aligns with national trends but reflects local market dynamics. According to the 2023 report by the National Association of Realtors (NAR), the average commission in the U.S. was 5.5%, with Boston’s rates slightly higher due to higher transaction values and competitive agent services. A 2023 study by the Massachusetts Association of Realtors (MVAR) found that 68% of Boston agents use a percentage-based commission for residential sales, while 22% offer hybrid models combining percentages and flat fees. This variation accounts for properties in different price brackets, with luxury homes (over $2 million) often seeing lower percentages (e.g., 4.5% to 5%) paired with additional fees for marketing or negotiation expertise. Market conditions also influence commissions; during high-demand periods, sellers may agree to higher rates to secure top-tier agents. Additionally, Boston’s regulatory environment requires all commissions to be disclosed in writing, ensuring transparency. These factors collectively explain the current commission landscape in the city.