How Much Do Real Estate Agents Make Per Sale?


Real estate agents make their income through commissions based on a percentage of a property’s sale price. Agents typically work for brokers, who also get a split of the commission. The amount varies by state and brokerage, but the general rule is that sellers pay between 5% and 6% of the sales price to the seller’s and buyer’s agents. Brokers may also charge a flat fee for their services, but that’s less common.

The amount of money a real estate agent makes per sale can vary widely depending on the average commission rate in their area and the size of homes sold. Experienced and top-producing agents often earn a higher commission rate than newer or inexperienced agents. Additionally, a number of factors can influence the final amount an agent receives for selling a home, including location, the average selling price of homes in the market, and how quickly or easily a home sells. Read more

In the US, most real estate agents are independent contractors and don’t have benefits like health insurance or 401(k) retirement plans. Therefore, they must be self-motivated and have the drive to succeed as independent contractors. This is particularly important when it comes to real estate, where agents can find themselves working in slow or stagnant markets.

Many real estate agents are able to increase their earnings potential by focusing on high-priced or luxury homes, which tend to generate more sales leads and close faster than lower-priced properties. In addition, buyers are often willing to pay a higher commission to work with an agent who has proven expertise in the high-end market.

As the housing market continues to slow down, the national average commission rate has fallen slightly. However, this decline has been offset by high home prices, which have increased the total sales price of homes sold and boosted real estate agent earnings. In some markets, agents are earning even more than before because of the high demand for homes in a limited supply.

In 2023, the average sales price of a home in New York City was $442,158. As a result, New York real estate agents are earning some of the highest salaries in the world. This is especially true for NYC real estate brokers, who can boost their earning potential by earning a New York broker license.

Although many people think that brokers and agents earn equal amounts of money, the truth is that brokers earn a larger percentage of the total real estate commission. This is because they are responsible for overseeing the entire transaction and handling much of the paperwork. However, agents can still earn a large salary by focusing on the high-end market or by building their relationships with clients.


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