How does commision work?

commission is a percentage of a amount given to a party. It happens mostly in real estate.

This is how it works

Lets say you want to sell your house for $500,000, and the agent finds a buyer. Then they set a commission percentage[ lets say 10% ].

10/100*500000=50000

now the seller has to pay both price of house and commission

meaning buyer gives $550,000