How much commission does a realtor make on a $500,000 house?

Let’s break this down step by step to get an accurate answer.

  1. Typical commission rate: Realtors usually charge 5% to 6% of the sale price. This is often split 50/50 between the buyer’s agent and the seller’s agent.
  2. Calculate total commission on $500,000:
  • At 5%: $500,000 × 0.05 = $25,000
  • At 6%: $500,000 × 0.06 = $30,000
  1. Split between agents:
  • $25,000 ÷ 2 = $12,500 per agent (if 5%)
  • $30,000 ÷ 2 = $15,000 per agent (if 6%)
  1. Broker split: Most agents also give a portion to their brokerage, commonly 30%–50%, but it can vary.
  • If the agent gives 30% to the broker:
    • $12,500 × 0.70 = $8,750 take-home (5% total commission)
    • $15,000 × 0.70 = $10,500 take-home (6% total commission)

Summary:

Total SaleCommission RateAgent Share (50/50)Take-Home After Broker (30% split)
$500,0005%$12,500$8,750
$500,0006%$15,000$10,500

So, on a $500k house, a realtor typically takes home around $8,750–$10,500 after splits, though it can be higher or lower depending on their broker deal.

Related

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