How Much Does a Real Estate Agent Make Per Sale

    How Much Does a Real Estate Agent Make Per Sale | CityLocal101

    The real estate agent helps the people throughout the process of property buying or selling. Most of the agents make money through commissions based on the property’s selling price. Hence, the money a real estate agent earns per year depends on several factors. These factors include the number of transactions they have completed, the commission of the brokerage, and the split with the sponsoring broker. 


    However, not all real estate agents earn the same amount of money. Moreover, the agents enter this work field with varying levels of education, thus this can influence income. Furthermore, the licensed agents are valued members in this field because there are several steps to complete a transaction. The agent helps in the process of listing and selling a home when his clients need to move to another location. So let’s have an insight into how much a real estate agent earns and how he does it.

    How Much Does A Real Estate Agent Earn On Average?

    If you are interested to know the average amount a real estate agent can earn then you must know that it varies from year to year. The pay is dependent on performance-based commission. This means that the amount of money a real estate agent makes per year is based on the property he sells and his knowledge on how to make money in real estate. Moreover, it depends on how much commission he received on each sale. 

    Most of the agents in their first year in the field earn very little as they are building a client base. The real experienced estate agents in the US earn an average salary of $42,183 as of Feb 2020.  But some agents make a lot more or a lot less than this amount. Furthermore, the new real estate agents will be working under the guidance of a broker and4 the commission splits between broker and agent. Hence, the average salary can range from $41,208 to 53,656.

    The top real estate agents make a lot more than this. In fact, as of Feb 2020 the real estate industry earned a median salary of $64,101 in the 90th percentile of the US. But the agents who sell one property every few months earn less than those who sell more. 

    The real estate agent's commission per sale is 6% of the total sale amount. Furthermore, this 6% is further divided into 50-50 between the client’s agent and buyer’s agent. On top of that, the agent splits this half with their broker. However, the stronger agent’s business skills are the more he can put in the career, and the more he will get out of it.  Furthermore, being a real estate agent is great if you like houses and enjoy working with people. 

    How To Calculate Commission?

    For instance, an agent makes a $300,00 sale and has a 6% commission rate that would be $18000. Now the agent would have to split this amount between the buyer’s broker and seller’s broker generally with a 55% to 45% ratio. Thus, $8,100 goes to the buyer’s broker and $9,900 to the seller’s broker. Afterward, $9,900 splits on the agreed amount between the agent and managing broker hence, this leaves the agent with the commission of $4,950 for selling a $300,000 property.

    how much does a real estate agent make per sale

    Pros Of Being A Real Estate Agent

    Choose Your Schedule

    Being a real estate agent you get a lot of flexibility with scheduling. This field allows you to be your boss in a way that you have the power to arrange your day. This way you will be able to attend important family events or much more. Moreover, you do not have to clock in and out with a timecard in this career. 

    how much does a real estate agent make per sale

    Unlimited Income Potential

    You can get unlimited earning potential working as a real estate agent. Therefore, you must have business skills and must put your time into this career. However, the average agent earns 25% more in their wages than any other average worker in the United States. 

    how much does a real estate agent make per sale

    Helping People To Get Their Dream House

    Every day a real estate agent shows fantastic properties to his clients. Moreover, he works with families who are trying to find their dream home. Hence, you might have a chance to be part of someone’s biggest moments of life in this career. Therefore, this excites and motivates an agent more to do even more selling which is also beneficial for his financial stability. 

    how much does a real estate agent make per sale

    Career Mobility

    Becoming a real estate agent is a better choice to consider if you are tired of climbing the corporate ladder. With this field, you have a chance to even create a business with a staff of your own if you are good at it. Thus, if you choose this career then you would have lots of excellent opportunities that can help you to unlock a lot of success.

    how much does a real estate agent make per sale

    How Much Does a Realtor Earn?

    A realtor is a licensed agent that uses this respected title widely. To become a realtor an agent needs to be a member of the National Association of Realtors. Realtors hold a higher ethical standard than licensed agents. Furthermore, some realtors are brokers while some are agents.

    However, brokers are usually managers who run agencies and agents work under them. A realtor may own a real estate brokerage and must take additional courses for this purpose. On the other hand, an agent is a salesperson on behalf of the broker. So you must know how much realtors make per sale, hence many times the commission is split between the realtor and the agent. Therefore, a majority of realtors charge about 6% commission on the sale. 

    It is no secret that becoming a real estate agent is a great way to move into a new field. However, this all comes down to how good you are at your job. After all, 88% of home buyers end up working with real estate agents to get a perfect home. Most of the realtors earn a small monthly salary that is further increased by making more sales. Moreover, those who do not work for any agency or firm will get more benefits. 

    But how much do realtors make per house sold? The answer to this is that it all depends on how much sale is for the commission, and who else is taking a commission percentage split. However, you must know how much they make on average, thus, it depends on the agent’s ability and how they succeed in the market. 


    In conclusion, agents are often paid depending on many factors. They get their payment either monthly or at an hourly rate. However, the earning potential of a real estate agent is dependent on the sales he makes. Moreover, on how much commission he makes after each sale. Thus there are some basic figures to consider. First, a realtor in the top 10% of the field can earn $112,000 on average. 

    Moreover, the lowest percentage that they earn is $22,200 annually. However, the income also varies on how much time an agent puts in. It also depends on the level of license and training, and which part or region of a country he works in.