How Much Do Real Estate Agents Make Per Sale?


Real estate agents are a crucial part of the home sales process. They help buyers find a property that meets their needs, negotiate with sellers on behalf of their clients and handle all the necessary paperwork associated with the transaction. It’s no wonder that they want to earn a good living from their services. However, the commission they charge can be a source of confusion for buyers and sellers.

While a salary may sound more secure, most real estate agents rely on commissions to make their income. The average national commission rate is around 5 to 6 percent of the sale price of a property, according to Clever Real Estate. This figure is typically split between the agent and their sponsoring broker. In some cases, a single agent is paid a flat fee. Also read

The amount of the commission can vary based on how it is structured and the type of property sold. For example, a national brokerage such as Keller Williams Realty reports on its website that the agent takes home 64% of the commission share and the broker takes the remaining 30%. In addition, many real estate agents are required to pay a franchise fee as well, which can add up quickly.

When a seller agrees to pay commission to an agent, it is usually included in the listing agreement. The agent and the seller must also agree to work with a buyer’s broker, which is the person responsible for finding a buyer. The listing broker must offer a commission to the buyer’s broker, and it is usually in the form of a percentage of the sale price of the property.

It is important to note that the average commission rates for real estate agents do not include any fees that might be charged by their sponsors, such as advertising or marketing expenses. Additionally, the amounts listed do not include any other forms of compensation, such as health insurance or 401(k) retirement plans, which most real estate agents receive only when they close a sale.

There is some wiggle room on the amount of real estate commission, especially in strong seller’s markets. When demand for homes is high and multiple offers are received, a real estate agent’s earnings can significantly increase, making them more willing to negotiate a lower commission rate in order to receive a larger chunk of the pie.

As the housing market slows down, some agents are seeking new ways to earn an income. One option is to shift away from the traditional real estate model and seek employment with companies that pay annual salaries and bonuses instead of working on commissions. Companies such as Redfin, which employs a full staff of real estate agents, offer their employees a base salary and then bonus opportunities based on the number of transactions they close.

In the end, real estate agents deserve to be compensated for their hard work and the countless hours they put into selling properties. While the cost of their services may be a bit of an eye-opener for some, it is essential that they are able to continue to provide their valuable services to homeowners.


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