February 9, 2020

Here's how much a real estate agent makes and why they're worth that fee

A real estate agent usually doesn’t earn an hourly wage. Instead, most make their income only after a home has been sold. This income is in the form of a commission, which equates to a percentage of the home’s selling price. So the answer to how much do real estate agents make will depend on how much the home sells for. The average commission today is between 5 and 6 percent of the home’s sales price. Say the home you buy sells for $300,000. A 6 percent commission would equal $18,000.

But that commission money doesn’t go only to your agent. It’s typically split 50/50 between the buyer’s agent and the seller’s agent (also called the “listing” agent). If the seller’s agent also finds the buyer, the agent keeps the entire commission.

Still confused? Read my newest article for The Mortgage Reports here for a more thorough explanation.