What Percentage Do Agents Make? | Per Sale Earnings | Earnings by State | Annual Earnings | Hourly Earnings | Negotiating With Your Realtor | FAQs
| 💵 Real Estate Agent Earnings, At A Glance | |
|---|---|
| National average commission per sale (take home)* | 1.5% |
| National annual average** | $62,990 |
| National hourly average** | $30.28 |
*Clever Real Estate average commission survey
**U.S. Bureau of Labor and Statistics, May 2021
When your listing agent charges 5-6% of the sale price of your house, you might think they’re getting a big payday. In reality, agents take home a lot less at the end of each sale โ typically 1.5%. So, for a $250,000 home, an agent takes home approximately $3,750.
Since home sales generally involve two agents โ one representing the buyer and one representing the seller โ the seller’s agent charges the full commission and then splits it with the buyer’s agent.
- Listing agents earn an average commission of 2.8%
- Buyer’s agents earn an average commission of 2.7%
The agents don’t keep all of their commission, either โ they each split it with their broker.
Commission splits between agents and brokers vary, but 50/50 is common for new agents, while more experienced agents can have splits as favorable as 70/30.
๐ Key Takeaways:
- Real estate agents earn a commission each time they assist a buyer or seller with a sale. Commissions are deducted from the proceeds of the sale.
- Working with an agent might cost you as much as 6% as a home seller, but the agent will only make approximately 1.5% from the sale.
- Some agents also earn a base salary from their brokerage โ but most work exclusively on commission.
- Average earnings for real estate agents vary by state because of variables like local sale prices.
What Percent Do Real Estate Agents Make?
Real estate agents who represent home sellers make approximately 6%, but that’s not the amount they actually take home when the sale closes.
Most agents walk away with about 1.5% because their commission gets split a couple of ways.
Assuming an equal split among both of the agents and their brokers, here’s how the total commission breaks down:
ยป MORE: How does a 3% Commission Work?
How Much Do Real Estate Agents Make Per Sale?
Listing agents and buyer’s agents typically make 3% each, but since they have to split their commission with their broker, they might only walk away with 1.5%.
This means that on the sale of a $250,000 home, your agent might earn $3,750.
See the table below for a breakdown of average commissions and per-sale earnings by state.
| State | Average total commission (%) | Average total commission ($) | Average agent take home pay ($) |
|---|---|---|---|
| Alaska | 5.25% | $16,400 | $2,600 |
| Alabama | 5.61% | $9,200 | $4,500 |
| Arkansas | 5.91% | $8,600 | $4,400 |
| Arizona | 5.36% | $18,300 | $2,300 |
| California | 4.92% | $32,800 | $4,200 |
| Colorado | 5.50% | $26,400 | $3,000 |
| Connecticut | 5.41% | $17,500 | $4,800 |
| Washington D.C. | 5.25% | $16,000 | $5,200 |
| Delaware | 5.75% | $13,900 | $1,800 |
| Florida | 5.38% | $42,400 | $3,000 |
| Georgia | 5.87% | $21,100 | $11,100 |
| Hawaii | 5.25% | $10,600 | $5,600 |
| Iowa | 5.90% | $9,700 | $3,200 |
| Idaho | 5.55% | $10,400 | $2,800 |
| Illinois | 5.21% | $12,100 | $2,500 |
| Indiana | 5.87% | $9,500 | $2,700 |
| Kansas | 6.00% | $9,500 | $2,600 |
| Kentucky | 5.73% | $15,800 | $2,300 |
| Louisiana | 5.19% | $12,000 | $5,600 |
| Massachusetts | 4.97% | $25,400 | $4,400 |
| Maryland | 5.08% | $18,700 | $6,300 |
| Maine | 5.45% | $16,800 | $3,200 |
| Michigan | 5.98% | $7,700 | $4,600 |
| Minnesota | 5.68% | $18,700 | $2,100 |
| Missouri | 5.92% | $11,200 | $3,000 |
| Mississippi | 5.54% | $10,600 | $5,500 |
| Montana | 5.50% | $21,000 | $3,100 |
| North Carolina | 5.45% | $15,000 | $3,400 |
| North Dakota | 6.00% | $15,000 | $5,600 |
| Nebraska | 5.29% | $15,800 | $5,000 |
| New Hampshire | 4.83% | $13,100 | $3,000 |
| New Jersey | 5.18% | $10,400 | $3,400 |
| New Mexico | 6.21% | $18,200 | $3,700 |
| Nevada | 5.00% | $17,700 | $4,500 |
| New York | 5.11% | $8,600 | $2,800 |
| Ohio | 5.84% | $22,200 | $2,500 |
| Oklahoma | 5.89% | $12,600 | $6,200 |
| Oregon | 5.19% | $18,800 | $3,100 |
| Pennsylvania | 5.60% | $12,800 | $5,700 |
| Rhode Island | 5.15% | $11,900 | $2,800 |
| South Carolina | 5.83% | $12,100 | $3,000 |
| South Dakota | 5.00% | Average total commission ($) | $3,500 |
| Tennessee | 5.56% | $13,700 | $3,000 |
| Texas | 5.78% | $27,400 | $7,700 |
| Utah | 5.17% | $22,700 | $7,200 |
| Virginia | 5.15% | $16,600 | $5,500 |
| Vermont | 6.00% | $17,600 | $2,000 |
| Washington | 5.17% | $26,200 | $6,400 |
| Wisconsin | 5.93% | $17,100 | $1,800 |
| West Virginia | 5.54% | $13,300 | $3,500 |
| Wyoming | 5.48% | $6,500 | $4,600 |
| $14,700 | |||
| Alabama | 5.61% | $16,400 | Per sale average: $4,923 |
| Alaska | 5.25% | $9,200 | Per sale average: $2,799 |
| Arizona | 5.36% | $8,600 | Per sale average: $2,712 |
| Arkansas | 5.91% | $18,300 | Per sale average: $5,393 |
| California | 4.92% | $32,800 | Per sale average: $10,062 |
| Colorado | 5.50% | $26,400 | Per sale average: $7,859 |
| Connecticut | 5.41% | $17,500 | Per sale average: $5,049 |
| Delaware | 5.75% | $16,000 | Per sale average: $4,784 |
| Florida | 5.38% | $13,900 | Per sale average: $4,074 |
| Georgia | 5.87% | $42,400 | Per sale average: $12,722 |
| Hawaii | 5.25% | $21,100 | Per sale average: $6,323 |
| Idaho | 5.55% | $10,600 | Per sale average: $3,205 |
| Illinois | 5.21% | $9,700 | Per sale average: $3,013 |
| Indiana | 5.87% | $10,400 | Per sale average: $3,102 |
| Iowa | 5.90% | $12,100 | Per sale average: $3,739 |
| Kansas | 6.00% | $9,500 | Per sale average: $2,859 |
| Kentucky | 5.73% | $9,500 | Per sale average: $2,860 |
| Louisiana | 5.19% | $15,800 | Per sale average: $5,226 |
| Maine | 5.45% | $12,000 | Per sale average: $3,588 |
| Maryland | 5.08% | $25,400 | Per sale average: $8,182 |
| Massachusetts | 4.97% | $18,700 | Per sale average: $5,637 |
| Michigan | 5.98% | $16,800 | Per sale average: $5,271 |
| Minnesota | 5.68% | $7,700 | Per sale average: $2,313 |
| Mississippi | 5.54% | $18,700 | Per sale average: $5,862 |
| Missouri | 5.92% | $11,200 | Per sale average: $3,490 |
| Montana | 5.50% | $10,600 | Per sale average: $3,590 |
| Nebraska | 5.29% | $21,000 | Per sale average: $6,372 |
| Nevada | 5.00% | $15,000 | Per sale average: $4,486 |
| New Hampshire | 4.83% | $15,000 | Per sale average: $4,128 |
| New Jersey | 5.18% | $15,800 | Per sale average: $4,929 |
| New Mexico | 6.21% | $13,100 | Per sale average: $4,107 |
| New York | 5.11% | $10,400 | Per sale average: $3,141 |
| North Carolina | 5.45% | $18,200 | Per sale average: $5,359 |
| North Dakota | 6.00% | $17,700 | Per sale average: $5,481 |
| Ohio | 5.84% | $8,600 | Per sale average: $2,584 |
| Oklahoma | 5.89% | $22,200 | Per sale average: $6,803 |
| Oregon | 5.19% | $12,600 | Per sale average: $3,794 |
| Pennsylvania | 5.60% | $18,800 | Per sale average: $5,646 |
| Rhode Island | 5.15% | $12,800 | Per sale average: $3,833 |
| South Carolina | 5.83% | $11,900 | Per sale average: $3,558 |
| South Dakota | 5.00% | $12,100 | Per sale average: $3,641 |
| State | Average total commission (%) | Average total commission ($) | Average agent take home pay (Per sale average: $) |
| Tennessee | 5.56% | $13,700 | Per sale average: $4,042 |
| Texas | 5.78% | $27,400 | Per sale average: $8,614 |
| Utah | 5.17% | $22,700 | Per sale average: $6,800 |
| Vermont | 6.00% | $16,600 | Per sale average: $4,888 |
| Virginia | 5.15% | $17,600 | Per sale average: $5,267 |
| Washington | 5.17% | $26,200 | Per sale average: $7,868 |
| Washington D.C. | 5.25% | $17,100 | Per sale average: $5,212 |
| West Virginia | 5.54% | $13,300 | Per sale average: $4,243 |
| Wisconsin | 5.93% | $6,500 | Per sale average: $2,043 |
| Wyoming | 5.48% | $14,700 | Per sale average: $4,689 |
*Dollar values are rounded to the nearest hundred.
Real Estate Agents’ Earnings Vary by State
Agents generally earn more in large cities or densely populated states.
For example, real estate agents in New York make $102,200 per year, on average. Agents in South Dakota, by comparison, make $45,550 per year.
See the map below for a complete state-by-state breakdown.
| State | Per sale | Per hour | Per year |
|---|---|---|---|
| Alabama | $4,923 | $25.48 | $52,990 |
| Alaska | $2,799 | $36.47 | $75,860 |
| Arizona | $2,712 | $26.72 | $55,580 |
| Arkansas | $5,393 | n/a | n/a |
| California | $10,062 | $36.90 | $76,750 |
| Colorado | $7,859 | $39.05 | $81,210 |
| Connecticut | $5,049 | $37.76 | $78,540 |
| Delaware | $4,784 | $23.79 | $49,490 |
| District of Columbia | $4,074 | $30.97 | $64,420 |
| Florida | $12,722 | $29.39 | $61,120 |
| Georgia | $6,323 | $33.24 | $69,150 |
| Hawaii | $3,205 | $35.97 | $74,820 |
| Idaho | $3,013 | n/a | n/a |
| Illinois | $3,102 | $21.56 | $44,840 |
| Indiana | $3,739 | $22.79 | $47,410 |
| Iowa | $2,859 | $26.38 | $54,880 |
| Kansas | $2,860 | $27.64 | $57,500 |
| Kentucky | $5,226 | $25.50 | $53,030 |
| Louisiana | $3,588 | $24.41 | $50,760 |
| Maine | $8,182 | $31.34 | $65,180 |
| Maryland | $5,637 | $26.08 | $54,250 |
| Massachusetts | $5,271 | $45.28 | $94,170 |
| Michigan | $2,313 | $30.05 | $62,500 |
| Minnesota | $5,862 | $22.48 | $46,760 |
| Mississippi | $3,490 | n/a | n/a |
| Missouri | $3,590 | $29.00 | $60,330 |
| Montana | $6,372 | n/a | n/a |
| Nebraska | $4,486 | $25.31 | $52,650 |
| Nevada | $4,128 | $31.34 | $65,180 |
| New Hampshire | $4,929 | $25.22 | $52,450 |
| New Jersey | $4,107 | $33.49 | $69,660 |
| New Mexico | $3,141 | $28.30 | $58,870 |
| New York | $5,359 | $49.13 | $102,200 |
| North Carolina | $5,481 | $25.38 | $52,800 |
| North Dakota | $2,584 | $31.86 | $66,270 |
| Ohio | $6,803 | $23.62 | $49,120 |
| Oklahoma | $3,794 | $31.93 | $66,400 |
| Oregon | $5,646 | $26.34 | $54,790 |
| Pennsylvania | $3,833 | $27.61 | $57,420 |
| Rhode Island | $3,558 | $27.40 | $57,000 |
| South Carolina | $3,641 | $32.22 | $67,020 |
| South Dakota | $4,042 | $21.90 | $45,550 |
| Tennessee | $8,614 | n/a | n/a |
| Texas | $6,800 | $23.48 | $48,840 |
| Utah | $4,888 | $30.66 | $63,780 |
| Vermont | $5,267 | $34.75 | $72,280 |
| Virginia | $7,868 | $28.74 | $59,780 |
| Washington | $5,212 | $15.76 | $32,770 |
| West Virginia | $4,243 | $32.20 | $66,980 |
| Wisconsin | $2,043 | $33.51 | $69,700 |
| Wyoming | $4,689 | $31.87 | $66,280 |
How Much Do Real Estate Agents Make Per Year?
Real estate agents earn $62,990 per year, on average. Most agents aren’t paid a base salary, but you can calculate annual earnings by adding up their entire take-home commission for one year.
The typical take-home pay for an agent on a $255,739 home (the nationwide median home value) is $4,350.
Avg. Annual earnings/Avg. Per sale earnings = Total number of annual sales
$62,990 per year / $4,350 per sale = 14.5 sales
Theoretically, an agent needs to make approximately 14-15 home sales in a year to earn the national average income.
Annual earnings are affected by factors like:
- Location
- Number of sales
- Years of experience
- Hours worked
- Local real estate prices
How Much Do Real Estate Agents Make Per Hour?
The national average hourly earnings for real estate agents is $30.28, according to the U.S. Bureau of Labor Statistics. Agents aren’t paid by the hour, but this calculation divides the national average ($62,990) by 2,080 hours (full time).
As a home buyer or seller, you’ll never be handed a bill for the hours that your agent puts in during your sale โ they’re compensated for their time with commission once the sale closes.
Commissions Can Be Negotiated
Most people don’t realize they are allowed to negotiate commission with their real estate agent.
Most agents set their own commission rates, so it can be negotiated if the agent is willing to give you a discount. However, negotiating might be difficult if the agent’s only reason for offering a better rate is to help you save some money. In other words, there might not be much in it for them unless they think that giving you a deal could lead to more business down the road.
Our friends at Clever have pre-negotiated commission with partner agents across the county, so you’ll only have to pay 1% or $3,000 to your listing agent when you sell your home!
What Percentage Does a Real Estate Broker Make?
It depends on the broker and their agreement with the real estate agent. Many brokers split 50/50 with their agents, so if the commission from the sale was 3%, the broker would be paid 1.5%.
Nationally, real estate brokers earn an average of $81,450 per year (U.S. Bureau of Labor Statistics), but their compensation structure isn’t the same as real estate agents. Unlike agents, brokers are often paid a salary.
FAQs
How much does a realtor make on a $100,000 sale?
The national average take home pay for a realtor is 1.7% of the sales price of a home. On a $100,000 sale, an agent will make $1,700.
How does a realtor get paid on a new construction?
Newly built houses are still sold by someone, even if a developer or property management company owns the property. If the property has been listed, in most cases the owner pays their listing agent, who splits their commission with the buyer's agent.
Methodology
We used publicly available data from the United States Bureau of Labor Statistics to source information about the average hourly and annual earnings of real estate agents across the country in 2020.
The information in our customized report from the Bureau of Labor Statistics 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 2021 survey of real estate agents in all 50 states.
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