How Much Does a Real Estate Agent Make Per Sale?


A real estate agent’s salary depends on their experience and reputation, the local market and home prices. New agents typically earn less than more experienced agents who have built a solid client base. However, over time, their earnings are likely to climb as they build their business.

As with many professions, a significant amount of an agent’s income is eaten up by taxes and other business expenses. Federal, state and self-employment taxes, as well as the cost of doing business such as insurance, multiple listing service (MLS) fees and advertising, cut into an agent’s commission. Brokerage fees are another expense that can be a substantial percentage of an agent’s commission, depending on the brokerage. Read more

Real estate commissions are typically a pre-negotiated percentage of the sale price of a property. For example, when a seller signs an exclusive listing agreement with a Realtor, the agency agrees to sell the property for a specified percentage of the final sales price. The seller pays the agent this fee, which is then split between the listing and buyer’s agents, based on whether both agents are representing buyers or not.

The average commission in the United States is currently around 5 to 6 percent, which is split between a seller’s and buyer’s agent. This is higher than in other countries. But the industry is undergoing major changes, and some experts believe that the standard commission rate may fall to as low as 4 percent in the near future.

As a result of the changing landscape, real estate agents are starting to focus more on building their business and reputation and finding ways to reduce their fees. While some agents may be reluctant to lower their rates, others are more open to negotiating. For example, if a seller’s agent is working on a high-profile sale and expects to bring in a lot of new clients, the agent might be willing to lower their commission.

Another option for sellers is to find a Realtor who is affiliated with a brokerage that offers reduced rates. Some brokers offer a flat fee for selling a property, while others require that agents negotiate their commissions with each client.

For homeowners, it’s important to understand the amount of money a real estate agent makes per sale so they can decide whether or not they want to use an agent. For many, it is worth the added work and expense to use an agent who will help them get the best possible outcome when buying or selling a home.


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