The term “average real estate commission” gets thrown around a lot. You’ll hear 5%, sometimes 6%. But those numbers are just the starting point. What really matters is what you take home after it’s been split, sliced, and skimmed, first between agents, then by the brokerage, and finally through added fees most agents never see coming.
This article is a no-spin, numbers-first look at what real estate agents actually earn in 2025. We’ll break down how commission structures work today, what’s changing due to recent legal shifts, and why flat-fee brokerages are gaining traction among agents who value autonomy and clarity.
Ready for the real math? Let’s get into it.
What Is the “Average” Real Estate Commission in the U.S.?
For decades, 5% to 6% has been the industry’s default commission rate on residential real estate transactions in the U.S. This figure typically covers both sides of the deal, half for the listing agent, and half for the buyer’s agent. But what’s “average” on paper rarely reflects what agents actually walk away with.
Here’s the typical breakdown:
- 2.5% to the listing agent
- 2.5% to the buyer’s agent
That may sound fair until you look under the hood. Commission rates are not set by law, they’re entirely negotiable. In competitive markets or on high-value properties, it’s common to see total commissions dip to 4% or less. On the flip side, homes in rural or slower-moving markets may still push closer to 6%.
To show how regional norms vary, here’s a snapshot of average total commissions by state:
| State | Avg. Commission Rate |
| Florida | 5.05% |
| Georgia | 5.62% |
| Alabama | 5.44% |
| California | 4.99% |
| Michigan | 5.86% |
| Nevada | 3.51% |
| Texas | 5.59% |
So, what percentage do most realtors actually take? That depends not just on the total commission, but on the agent’s brokerage arrangement, and that’s where the real math begins.
How Commission Splits Really Work
Let’s say a home sells for $500,000 and the total commission is 6%, that’s $30,000. Half goes to the listing side, half to the buyer’s side. If you’re the buyer’s agent, you get $15,000… or so it seems.
Here’s the catch: agents rarely keep the full amount. Instead, they split it again with their brokerage. Depending on your agreement, that split might look like:
- 70/30 – You keep 70%, brokerage takes 30%
- 80/20 – You keep 80%, brokerage takes 20%
- 90/10 – Usually for high producers or capped models
In a 70/30 model, your $15,000 cut becomes $10,500. And it doesn’t stop there.
Most brokerages add monthly desk fees, technology subscriptions, E&O insurance deductions, and marketing charges, often without warning. That’s why many agents walk away from a $500,000 sale with something closer to $7,000–$8,000.
New Rules in 2025: Who Pays the Commission Now?
One of the biggest shifts in recent real estate history came with the 2024 NAR lawsuit settlement, which disrupted the way commissions are disclosed and paid.
Previously, it was common practice for sellers to pay both their agent and the buyer’s agent, bundling commissions into the sale price. Moving forward, sellers are no longer expected to automatically cover the buyer’s agent fee. Instead, the responsibility must be negotiated and clearly outlined in the purchase agreement.
This change means:
- Buyers may need to pay their agent directly
- Listing agents must disclose commission terms more transparently
- Agents must learn to articulate their value more clearly to clients
Dual agency, a single agent representing both buyer and seller, adds another layer. Some states ban it outright, while others require specific disclosures. It may reduce overall commission, but it also introduces potential conflicts that agents must navigate carefully.
If you’re wondering, “Is commission part of closing costs?”, the answer is no, not in the traditional sense.
Commissions are paid outside of the typical lender/title-related closing fees, but they still come from the transaction proceeds. With today’s changes, buyers and sellers should expect these terms to be negotiated case-by-case.
Do You Have to Pay 6%? Exploring Modern Commission Models
For years, 6% was treated like a rule, but it’s not.
Commission rates are entirely negotiable, and today’s market reflects that. Whether you’re a buyer, seller, or agent, you’re no longer confined to the traditional model.
Discount brokerages like Clever and Redfin have led the way in lowering fees. Instead of 2.5% or 3% per side, some offer full-service listings for 1.5% or even flat rates under $5,000. Their models rely on volume over margin, with salaried agents and centralized systems that allow for leaner operations.
There’s also the For Sale By Owner (FSBO) route, where sellers bypass agents altogether. While this can eliminate the listing-side commission, sellers must take on marketing, pricing strategy, contract management, and negotiation themselves, a heavy lift if you’re not trained in the process.
Then there are flat-fee brokerages like ours at Realty Hub. We’ve eliminated the commission split entirely. Agents keep 100% of their earnings and simply pay $100/year and $100 per transaction. That flat structure makes income predictable and transparent.
Still, the rise of lower-cost options has sparked a real worry for consumers: “Am I getting ripped off paying 6%?” That’s a fair question.
In some cases, you might be, especially if you’re working with a high-cost brokerage that’s not offering any added value. But not every discount model is better by default. With low-cost providers, you may trade hands-on support for scale-based service.
The key? Know what you’re paying for, and what you’re getting in return.
What Does Your Commission Actually Pay For?
Whether you’re a client or an agent, it helps to break down where commission dollars go. When you hire a real estate agent, you’re not just paying for access to listings. You’re paying for time, tools, and strategy.
Here’s what’s typically covered by commission:
- Accurate pricing based on real-time market data
- Staging advice and property prep
- Professional photography and virtual tours
- MLS listings, signage, flyers, and paid marketing
- Open house coordination and private showings
- Offer handling, counteroffers, and negotiation
- Transaction management through inspection, appraisal, and closing
Real Agent Income: How Much Do You Really Keep?
Let’s go back to that $500,000 home and a 6% commission. That’s $30,000 total, split 50/50 between the listing and buyer’s agents.
Now let’s follow the money if you’re the buyer’s agent:
- $15,000 is your half of the commission
- You’re on a 70/30 split with your broker → you keep $10,500
- After E&O insurance, desk fees, and tech charges, you’re down to ~$7,500
- After taxes? Even less.
Here’s where the model matters. At Realty Hub, we don’t take a percentage. Our flat-fee structure means even a part-time agent can walk away with close to the full commission.
That’s why our platform attracts investor agents, second-career professionals, and referral-focused licensees who need flexibility without sacrificing their earnings.
Flat-Fee Brokerages: A New Path to Keep More Commission
If you’re tired of giving away 20%–30% of your income to a brokerage, there’s a better way. At Realty Hub, we built our platform for agents who want to keep more, work smarter, and run their business without unnecessary overhead.
Our flat-fee model is simple:
- $100 per year
- $100 per transaction
- You keep 100% commission
That’s not just a marketing phrase, it’s our entire structure. No desk fees. No franchise cuts. No admin deductions that chip away at your paycheck. Whether you’re closing three deals a year or thirty, you keep what you earn.
This model is a game-changer for:
- Experienced agents who don’t need hand-holding
- Investor agents managing a few properties a year
- Referral-only agents who want to monetize their network
- Part-time professionals building income around other ventures
With Realty Hub, your independence is backed by real infrastructure and responsive broker support.
Most agents don’t realize how much they’re giving away until they run the numbers. So let’s do exactly that.
Flat Fee vs. Traditional Commission (Side-by-Side Comparison)
Here’s how our model compares to a typical national brokerage structure:
| Feature | Traditional Brokerage | Realty Hub |
| Commission Split | 80/20 (Agent keeps 80%) | Agent keeps 100% |
| Franchise Fee | 5–8% deducted from commission | $0 |
| Desk/Tech Fees | $25–$200/month | $0 |
| E&O Insurance | Often billed monthly or per deal | Included |
| Annual Cost | Varies (can exceed $5,000+) | $100/year |
| Per Transaction Fee | $0–$400 (varies by firm) | $100/transaction |
| ROI for Part-Time Agents | Low (fees erode income) | High (flat, predictable costs) |
When agents realize how much they’re leaving on the table at their current brokerage, it’s a wake-up call. Flat-fee isn’t just affordable, it’s liberating.
Debunking Myths and Answering Questions
Myth 1: You Always Split Commission with a Broker
This is only true in traditional models. With Realty Hub, there’s no percentage split. You pay a flat fee and keep everything else.
Myth 2: Bigger Brokerages Mean Better Tools
Size doesn’t equal quality. Many large brokerages upsell agents on bloated systems they don’t need. We provide the essentials, E&O, transaction support, and compliance systems, without tacking on unnecessary software.
Myth 3: Only Full-Time Agents Succeed
Part-time agents at Realty Hub often outperform full-timers at traditional firms. Why? They’re efficient, niche-focused, and not drowning in overhead.
Myth 4: Flat-Fee Means No Support
We hear this one often. In reality, our brokers are responsive, our systems are compliant, and our private agent community is active. You get support when you need it, independence when you don’t.
Myth 5: You Owe Nothing If a Deal Falls Through
Unfortunately, that’s not always the case. Some brokerages still charge fees or withhold pending commissions. At Realty Hub, if the transaction doesn’t close, you don’t pay the per-deal fee. Period.
Q 1: Will I still earn a livable income?
This is one of the most honest questions agents ask. The answer: it depends on your structure. In traditional brokerages, commission splits, fees, and caps eat into your income fast. You may close five deals and still feel like you’re spinning your wheels. With Realty Hub’s flat-fee model, every transaction pays you in full, making even part-time production profitable.
Q 2: What happens if a deal falls through, do I still pay commission?
In most traditional brokerages, the answer is murky. Some firms still charge transaction or processing fees even if the deal collapses late in escrow. Others may deduct monthly dues or tech costs regardless of activity. At Realty Hub, our policy is clear: you only pay the $100 transaction fee if the deal closes. No sale, no charge.
Q4: Am I paying hidden brokerage fees I don’t understand?
In many firms, yes. Line items like tech access, franchise royalties, admin fees, and E&O charges are often buried in your commission breakdown. Our approach is the opposite: $100 per year. $100 per closing. Nothing else. You’ll never need a calculator or magnifying glass to figure out what you owe.
Q5: Will my broker take most of my cut even if I find the lead?
This one hits hard. You generate the lead, run the showings, negotiate the contract, then lose a third to your broker. At Realty Hub, we don’t skim off the top. Whether you closed a referral deal or a million-dollar buyer, you keep what you earned. That’s how it should be.
How to Choose a Brokerage That Doesn’t Take Your Hard-Earned Pay
Before you sign with a brokerage, ask these questions:
- How much do I actually keep after every deal?
- What are the recurring fees, monthly, annually, per transaction?
- Are there caps, quotas, or franchise royalties?
- What kind of support will I receive, and is it worth the cost?
- Can I work independently, or am I expected to attend meetings and trainings?
Too many agents fixate on potential commission instead of net income. What matters most is what ends up in your bank account, not on the HUD statement.
If you’re an agent who values autonomy, clarity, and real take-home pay, Realty Hub might be the right fit. We built our model for professionals who want to keep 100% of their commission without sacrificing compliance or support. No splits. No surprises. Just a flat structure that lets you focus on clients, not fine print.
Your business should work for you, not the other way around.If you’re ready to stop handing over a slice of every deal, here’s how Realty Hub works.