How Do Realtors Get Paid? (See What’s Changed)
As a home seller, you may wonder: How do Realtors get paid? This post answers your how, when, and who agent commission questions. See what's changed.
Two initial questions home sellers ask are “How much will my home sell for?” and “How much will it cost me to sell?” But a third query often arises: “How do Realtors get paid?”
Agent commissions can be a touchy subject, but the rules have changed, and the shift is in your favor as a seller. Following a landmark court settlement, sellers are no longer automatically expected to pay both the listing agent and buyer’s agent Realtor fees, which combined were traditionally 5%- 6% of the home’s sale price.
This post will break down how Realtors earn their income, explain what’s changed, and offer examples to help you understand your options in today’s evolving housing market.
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How do Realtors get paid?
Realtors earn their income through commissions — a percentage of the final sale price of the home. This commission is typically split between the listing agent and the buyer’s agent. Historically, the total commission ranged from 5%-6% of the sale price. For example:
- On a $430,000 home, a 6% total commission would amount to $25,800.
- This amount would be split equally between the listing agent and the buyer’s agent, with each receiving $12,900.
The agents’ brokerages often take a portion of the commission, with the remaining balance going to the individual agents. Both agents typically receive their compensation after the sale is closed and the keys (and title) to the home have changed hands.
