How Much Do Real Estate Agents Make On A Home Sale?

When you’re selling your house, you may wonder how much your real estate agent will make from the sale. Most real estate agents are paid through commissions, which are calculated based on the sale price of the home. The average commission rate is between 5% and 6%, which is typically covered by the seller.

We’ll explore agent commissions and how they’re split among listing and buyer’s agents and their brokers, as well as the factors that influence their earnings.

How real estate agents are paid

Real estate agents predominantly earn their income through commissions, a percentage of the home’s sale price. When a property is sold, the commission is typically split between the listing agent and the buyer’s agent, and from there, a portion is given to their respective brokerages.

While commissions remain the standard, some agents might also charge a flat fee or work for a salary, particularly in certain discount brokerages or specialized real estate firms. Nevertheless, the commission-based model is the most common, as it ties an agent’s compensation directly to their performance and the final sale price of the property.