The amount a real estate agent makes depends mostly on the commission rate, which is usually a percentage of the home’s sale price. Let’s break it down step by step:
- Typical Commission:
- Real estate commissions in the U.S. are usually around 5% to 6% of the sale price, split between the listing agent (seller’s agent) and the buyer’s agent.
- Example Calculation for a $300,000 house at a 6% total commission:
- Total commission: 6% of $300,000 = $18,000
- Split between listing agent and buyer’s agent: $18,000 ÷ 2 = $9,000 each
- Brokerage Cut:
- Agents usually pay a portion to their brokerage, often 20%–50%, depending on their agreement.
- If an agent pays 30% to the brokerage, their take-home is: $9,000 × 70% = $6,300
✅ Bottom line: On a $300,000 house, a real estate agent typically makes $6,000–$9,000 after splits and fees, depending on commission and brokerage cut.
Here’s a simple table showing approximate earnings for a real estate agent selling a home at different prices, assuming:
- 6% total commission (split 50/50 between listing and buyer’s agent)
- 30% goes to brokerage
| Home Price | Total Commission (6%) | Agent’s Share (50%) | After Brokerage (70%) |
|---|---|---|---|
| $200,000 | $12,000 | $6,000 | $4,200 |
| $300,000 | $18,000 | $9,000 | $6,300 |
| $400,000 | $24,000 | $12,000 | $8,400 |
| $500,000 | $30,000 | $15,000 | $10,500 |
| $600,000 | $36,000 | $18,000 | $12,600 |
💡 Note: These numbers can vary depending on the commission rate, how the split is negotiated, and brokerage fees. Some agents also do flat-fee or tiered commissions, which can change their earnings.
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