Whether we pay bills, withdraw money, send packages, or do other things, we will meet with the commission. Those fees are a part of our everyday life and sometimes we pay them without even realizing it. Sometimes they are included in the total price, but you will often get information from the employer about how much the commission is.
The best example of this is a bank. If you frequently withdraw money from another bank’s ATM, take a report of the balance on the ATM account and ask the bank for a statement of account. If you send money to bank accounts instead of paying online, you can run out of serious money. You can find information about it on the next bank statement.
What Is a Commission Calculator?
A commission calculator is a tool that will calculate the commission amount in the shortest possible time. With this tool, you will be able to see what amount of commission you will need to pay or get if you are the one who provides something.
Commission Amount Formula
Commission Amount = Sale Price * Commission %
To calculate the commission amount, you will need to use this formula. You may already have encountered it since it’s the basic one. Here’s an example of its usage:
| Sale Price | $1,000 |
| Commission | 10% |
Commission Amount = 1,000 * 10 %Commission Amount = 100
Where Do We Pay It the Most?
Real estate agency’s services
Whether you want to buy an apartment, house, or business space (with or without the help of a real estate agent), this is a dilemma faced by a large number of buyers. One of the main reasons why many people often give up hiring an agency is to pay the commission – a fee for the work done. To let you know what exactly the agency commission covers and what you pay through those three percent, we will check it out below.
Saving time
The reason why many customers opt for the agency’s services is to save time. Namely, every verified agency researches the real estate market in detail. Even if you don’t know where to buy an apartment (let’s say the location is not so important to you), the agency will show you what apartments or houses for sale offer to potential buyers. This way, you will choose one that seems interesting to you from their narrow and precisely selected offer (according to your criteria, budget, and needs).
Legal certainty
In addition to saving time, the agency gives the client legal security. This is certainly the most important thing when buying real estate, no matter if you’re looking for a new apartment or old construction.
The real estate offer that is shown to the clients has also passed the legal check, meaning the buyer is protected. This means the agency has checked all the documentation in detail, ownership of the apartment, and so on. In addition to checking the documentation, you will find out from the agent about the condition of the property, whether any improvements or investments are needed, etc.
Additional services of lawyers are paid by the seller
The agency commission also includes the costs of lawyers. This primarily includes standard verification of documentation as well as tailoring of pre-contracts and sales contracts. So if the buyer pays a commission, he bears the stated costs.
Bank services
There is no bank that has not thought of charging its service adequately. In banks, we pay almost everything, from maintaining a current account and a loan approval fee to withdrawing money from another banks’ ATM. It is no secret that, except for interest rates (where they earn billions of dollars a year), banks make the biggest profit on fees.
Banks are no different from other merchants who are looking for a way to sell something. We all know that there are promo services in the first few months, some services are free of charge in the first six months and the like. These tricks can make many people tempted to start using that service.
However, keep in mind that after the promotional period, this service will not be free anymore – it will be charged. Sometimes it costs money even during the promotional periods. Here is the example of where we pay the commission when it comes to banks:
Electronic banking
Electronic banking undoubtedly benefits everyone, including:
- Citizens because they do not have to go to the bank
- Banks, even more, as they can reduce congestion in branches
- Employees have less work and spend less paper and other office supplies.
However, banks began to charge commissions for them with each bill paid. We must understand that there are no free services and that digital banking cannot be free of charge. It has to bear the cost of the software application solutions that the hardware needs to support, among other things.
Using debit and credit cards
There is a commission when bills are paid in cash. When they are paid by card, the commission is the same as when withdrawing cash from your current account. It usually ranges up to three percent of the transaction amount. This is one of the highest fees when it comes to cards.
Withdrawing money by using ATMs
Commissions for withdrawing money from the counters of other banks are higher if it is done with credit cards. It doesn’t matter which card you use to withdraw money from other banks’ ATMs. Remember that there are different tariffs for nationally and internationally recognized cards.
Some banks do not charge a debit card withdrawal fee if they have such an agreement with your home bank in your country. It is a common misconception of users that a foreign bank will not charge a fee for withdrawing money from an ATM if it belongs to the same banking group as the bank that issued the card in your country.
Bear in mind that all commercial banks are separate legal entities. The fee for withdrawing money from ATMs will not be charged only if the banks have regulated this issue by mutual agreement.