By Jesse McCarl
It’s not always easy for a real estate agent to make money. Being (largely) self-employed and working off commission can make for a tricky salary. So where exactly does the check come from? With whom does a commission check get split? How does a Realtor get paid? Here is an in-depth look at real estate agents’ commission paychecks.
The median Realtor salary is $47,700, according to the National Association of Realtors. For starting agents, it is even lower, at $27,470. Average commission from total sales price is between 5-6%. Half of that goes to the selling agent and broker, and half goes to the selling agent and broker. The agent himself or herself takes 40-80% of that split, based on their agreed upon split.
If a home costs $300,000, the average agent would make $6,300 before taxes and other expenses. The average Realtor must sell 7.6 houses per year at $300,000 per unit just to earn the industry mean salary.