Median pay
| Occupation | Median annual wage (May 2025) |
|---|---|
| Real estate brokers and sales agents, combined | $57,400 ($27.59 an hour) |
| Real estate brokers | $73,220 |
| Real estate sales agents | $52,830 |
Median means half earned more and half less. Pay varies a lot, because most income comes from commissions, and the number of sales an agent closes in a year varies widely. The BLS projects employment growth of 2% from 2025 to 2035, slower than average.
How do realtors get paid?
Brokers and sales agents earn most of their income from commissions on sales. The commission is paid at closing to the agent's brokerage, which then pays the agent their share. Agents usually pay their own costs, such as licensing, association dues, marketing and transportation.
How much do real estate agents make per sale?
Example: a $400,000 home. The buyer's agreement sets the buyer's brokerage commission at 2.5% (an example; it's negotiable).
- Brokerage commission: $400,000 × 0.025 = $10,000.
- Agent split with the broker of 70/30 (an example): the agent gets $7,000; the broker keeps $3,000.
- Out of the $7,000 the agent pays taxes and business expenses.
| Sale price | 2% to brokerage | 2.5% | 3% | Agent's 70% of 2.5% |
|---|---|---|---|---|
| $250,000 | $5,000 | $6,250 | $7,500 | $4,375 |
| $400,000 | $8,000 | $10,000 | $12,000 | $7,000 |
| $600,000 | $12,000 | $15,000 | $18,000 | $10,500 |
Run other scenarios with the real estate commission calculator.
Why agent income varies so much
- Number of closed deals. Agents are paid when a sale closes, so a year with few closings means low pay regardless of hours worked.
- Local prices. The same commission rate pays more on a $600,000 home than on a $250,000 one.
- The split. Splits with the brokerage vary, and some brokerages charge flat fees instead.
- Expenses. Licensing, association dues, marketing, technology and driving come out of the agent's share.
- Negotiated rates. Commissions are negotiable on every deal.
How much do real estate brokers make?
The BLS median for brokers was $73,220 in May 2025. A broker who runs a brokerage earns from their own sales plus a share of the commissions their agents bring in, but also pays the costs of the office.
Who pays the realtor fees?
Traditionally the seller paid both agents out of the sale proceeds. Since NAR's practice changes on August 17, 2024:
- Buyers sign a written agreement with their agent before touring homes. It states the agent's compensation in specific terms and says commissions are fully negotiable and not set by law.
- Offers to pay buyer agents can't appear on the MLS, but sellers can still offer to pay them off the MLS, and can offer concessions toward the buyer's costs.
So the listing agent is paid under the seller's listing agreement, and the buyer's agent under the buyer's agreement, from the buyer, the seller, or both. If you're selling, see how much it costs to sell and the home sale calculator.
Sources: U.S. Bureau of Labor Statistics: Occupational Outlook Handbook, Real Estate Brokers and Sales Agents; NAR: what the settlement means.
Every worked example on this page was checked with Calcist's own engine and an independent reference.