what percent do realtors get

what percent do realtors get

2 months ago 15
Nature

Realtors typically earn a commission that averages around 5% to 6% of the home's final sale price. In 2024, the national average total commission was about 5.32% to 5.57%, with the commission usually split roughly evenly between the seller's agent and the buyer's agent-each receiving about 2.5% to 3% of the sale price

. For example, on a $500,000 home sale, the total commission at 5% would be $25,000, split as $12,500 to the seller's agent and $12,500 to the buyer's agent

. However, these percentages can vary by state, region, and brokerage, with some areas seeing rates as low as around 4.5% and others closer to 6%

. It's important to note that agents do not keep the entire commission. They typically share it with their brokerage, often splitting the commission 50/50 or in other ratios like 60/40 or 70/30 depending on experience and agreements. After expenses and splits, the agent's actual take-home pay might be about 1% of the home sale price

. Recent changes in 2024 require buyer's agents to negotiate their fees directly with buyers, potentially altering how commissions are structured in the future

. In summary:

  • Typical total commission: ~5% to 6% of sale price
  • Split between seller’s and buyer’s agents: about half each (~2.5% to 3%)
  • Agent’s actual earnings after broker split: roughly 1% of sale price
  • Commissions vary by state and property price
  • New regulations are changing commission negotiations for buyer’s agents
Read Entire Article