What Percentage Do Realtors Make From A Home Sale?

Real estate commissions, though varying annually by up to one percent, have remained steady in the 5% to 6% range. While the national average was 5.8% in 2022, a recent survey by FastExpert indicates some commissions have dipped as low as 4.9% in Q4 2023. Despite these reductions, the surge in property prices has resulted in higher earnings per sale for agents, making the current market particularly lucrative.

Editor’s note: On March 15, 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more.

Realtor® fees remain the highest expense for sellers at closing. In May 2024, the national average price for a single-family home in the US climbed 5% to $389,400 from last year. At this price, a seller would pay $19,080.60 at a 4.9% commission or $23,364.00 at a 6% commission. With such high costs, many sellers are seeking ways to keep more of their money.

However, not all of that commission goes to the seller’s agent. While the seller usually pays the full commission, this fee typically is split between the seller’s agent and the buyer’s agent, often in half. Then, each agent also may need to share their portion with their respective brokers. In a 50/50 split with a broker — which is typical — the seller’s agent in the example above may pocket only about $5,841.00 — even with a 6% commission rate.

Let’s explore how agent split commissions operate in more detail.