Realtors earn commissions, not salaries. How much real estate agents make varies based on several factors, including the number of homes they sell, the average commission rate in their area, and their expenses.
Here's the most recent data on what agents typically earn:
- Per sale: Seller's agents and buyer's agents earn an average of $10,604 and $10,383, respectively, from a sale at the national median home price of $368,198. However, these amounts are often shared with their sponsoring broker, reducing their take-home pay.
- Annual salary: The median yearly income for real estate agents is $58,960. Brokers with additional responsibilities and licensing earn more, with a median of $72,280.[1]
- Hourly wage: The mean hourly wage for real estate agents is $28.35.[1]
Real estate commissions traditionally cost 2.5–3% of the home's sale price per agent. But rates aren't set in stone. To pay less, you can negotiate the rate directly with your agent, or you can work with a company that has already negotiated lower rates on your behalf.
For example, Real Estate Witch pre-negotiates 1.5% listing fees with agents from trusted brokerages like Keller Williams and RE/MAX. That means you can get a top-rated agent who provides full service for half the traditional rate. Sellers save an average of $7,000. Answer five short questions to get matched with the best 1.5% agents near you.
How much do real estate agents make per sale?
When selling a home, listing agents charge an average commission of 5.70% of the sale price. This commission is usually shared with the buyer's agent.
- Seller's agents: On average, they earn a commission rate of 2.88%, which amounts to $10,604 for a home sold at the U.S. median price.
- Buyer’s agents: They earn an average commission rate of 2.82% per sale, or $10,383.
However, agents don't keep the entire commission; they share a part with their brokerage.
With a common 50/50 real estate commission split between agents and their brokers, the distribution of a typical 6% commission would lead to the listing agent, their broker, the buyer's agent, and their broker getting 1.5% each.
How much do real estate agents make a year?
Have you ever wondered about real estate agent salaries? Here's a detailed breakdown based on industry data and government statistics to give you a clearer picture.
The average real estate agent is involved in about 12 residential transactions each year.[2] Splitting their efforts evenly between buyers and sellers — 6 transactions each — an agent's annual earnings would be:
- Commission for representing sellers: $29,118
- Commission for representing buyers: $27,366
After deducting the share from their brokerage, an agent makes approximately $56,484 annually, assuming they work with the national average home price and commission rate.
The U.S. Bureau of Labor Statistics provides a slightly different perspective, noting the median annual wage for real estate agents is $58,960.[1] This figure suggests an almost even split, with half of all agents earning above this amount and the other half making less.
A real estate agent must complete approximately 12 transactions yearly to earn the national median income. To break into the top 10% of agents earning $125,140 per year or more,[1] they must sell about 20 homes.
Also note that real estate agents are usually independent contractors, not salaried workers. So, they usually don't get the same benefits as those workers do, like health insurance, a 401(k), or paid time off.
How much do real estate agents earn per hour?
Real estate agents have a mean hourly wage of $28.35.[1]
As a buyer or seller, you won't directly pay for the hours your agent works on your transaction. Instead, agents receive their compensation through commission after a sale is completed. The hourly wage is simply an estimate, offering a perspective on what a realtor might earn, breaking down their total work time into an hourly figure.
States where real estate agents earn the most
| State | Annual mean wage |
|---|---|
| New York | $ 112,080 |
| Vermont | $ 100,750 |
| Connecticut | $ 84,810 |
| New Jersey | $ 82,490 |
| Alaska | $ 81,720 |
In states with a high average final sale price — like New York and Colorado — agents might sell fewer homes annually. Yet they may still surpass the national median income for realtors, thanks to these larger commission checks from higher home prices.
How much does a realtor make on a $500,000 sale?
As home prices increase, so do the commissions realtors earn. This is why realtors benefit from focusing on clients with high-priced or luxury homes. They can boost their commission earnings with the same level of effort.
Here’s a look at an agent's potential earnings from a $500,000 home sale, based on a 3% commission rate and 70/30 brokerage split:
| Gross commission (3%) | $15,000 |
| Broker portion (30%) | $4,500 |
| Agent's net earnings | $10,500 |
If both the listing agent and buyer's agent have a 3% commission rate, the total commission paid by the homeowner would be $30,000.
This figure doesn't account for seller closing costs, which can add 1–3% to the home's sale price, covering expenses like transfer taxes and attorney fees.
How do realtors get paid?
Most real estate agents get paid a commission each time they assist a buyer or seller with a sale.
The commission amount — including the percentage to the buyer’s agent — is specified in the listing agreement between the home seller and their listing agent.
When a home sale closes, commissions are deducted from the proceeds and distributed to the buyer’s and seller’s agents’ brokerages through the escrow or title company.
Each broker then disburses the proper share to their agent, according to their agreed-upon commission split, which starts at 50/50 and graduates to 70/30 or better as agents grow their sales numbers.
Real estate agents typically work as independent contractors, not as salaried employees. This means they often don't receive the same benefits that come with traditional employment, such as health insurance, 401(k) retirement plans, or paid vacation time.
Some agents (like those who work for Redfin) get a base salary from their brokerage and earn a smaller commission from each sale — but most work only on commission.
How much does a real estate broker make?
Brokers — who complete extra licensing requirements to either work independently or hire other agents under them — earn an average annual salary of $72,280.[1]
In addition to keeping 100% of the commission from their own deals, brokers earn a percentage of the commission brought in by the agents who work for them.
Many brokers split commissions 50/50 with their agents, so if the commission from the sale is 3%, they make 1.5%.
Other brokers may not collect commissions but instead earn a salary for taking on a brokerage's day-to-day operations and keeping a firm in compliance with state and national real estate laws.
How to save on real estate commission
Negotiate with your realtor
Commission rates aren’t standardized across the industry. Most people don’t realize they can negotiate commissions with their real estate agent.
Realtor fees are the biggest cost of selling a house. Negotiating even a 0.5–1% reduction can lead to thousands in savings. For example, on a $500,000 home sale, lowering the rate from 3% to 2.5% would save you $2,500.
If you're open to initiating the discussion, there's a chance your agent may offer you a discount on their commission. However, only about 22% of recent home sellers actually talk about commission rates with their agent and successfully negotiate a lower fee.[3]
Your chances of securing a lower rate depend on how much leverage you have. You're more likely to be successful when you're in a hot seller's market, have an especially desirable home, or use the same agent to buy and sell a home.
Use a low-commission agent
Another way to save is by working with an agent who offers competitive rates from the start.
Low-commission agents offer the same services as traditional agents, but at a lower rate — often 1.5–2%. On a $500,000 home sale, a 1.5% rate would save you $7,500 compared to the traditional 3%.
An easy way to find low-commission agents is through a free service like Real Estate Witch.
Simply answer five quick questions, and we'll match you with top local agents who work for a pre-negotiated 1.5% listing fee.
Clever is able to secure these lower rates because it connects agents with a steady stream of clients. Since agents don’t have to spend extra time or money finding leads, they’re willing to pass the savings on to you.
Related reading
Methodology
We used publicly available data from the U.S. Bureau of Labor Statistics to source information about the annual earnings of real estate agents across the country.
The salary information in our customized data tables intentionally excludes real estate brokers. Brokers often act as both agents and brokerage managers, so their earnings are generally higher and their compensation structure includes a salary or a percentage of the brokerage's overall sales.
Average commission numbers and total take-home pay were sourced from Clever Real Estate's 2025 survey of real estate agents in all 50 states.