Most real estate agents earn 2.5%–3% per deal, but that’s before brokerage splits, fees, and overhead. After a 70/30 split and expenses, take-home pay shrinks fast. In 2024, The average salary for a full-time real estate agent in the U.S. is $58,960 per year, according to the U.S. Bureau of Labor Statistics.
The truth is, commissions in this industry have always been a moving target.
One agent might pocket 2% of a deal, another might walk away with nothing after splits, fees, and overhead. Add in shifting rules around who pays what, and the rise of alternative brokerage models, and the math gets even messier.
This article is here to clean that up.
If you’re wondering what a “normal” commission percentage looks like in 2025, how much most agents really make, and how to put more of that money back in your pocket, we’ve got you.
Let’s break it down.
Real Estate Commissions in 2025
Let’s start with what a commission really is. In real estate, a commission is the agent’s compensation, typically calculated as a percentage of the final sale price of the home. Historically, this has hovered around 5% to 6%, split between the buyer’s and seller’s agents.
But 2024 changed everything.
Due to a nationwide settlement involving the National Association of Realtors, sellers are no longer allowed to pay the buyer’s agent commission. That responsibility now falls on the buyer, who must sign a written agreement with their agent before touring homes, and agree on what they’ll pay.
This shift was designed to bring transparency to the process, but it also puts pressure on agents to justify their rates and compete on value.
Let’s say a home sells for $400,000 under the traditional model. If a 6% total commission was negotiated, that’s $24,000. The listing and buyer’s agents would each take $12,000, right? Not exactly.
Each agent typically splits their portion with their brokerage. If the agent is on a 70/30 split, they might take home $8,400 from their $12,000 half. And if they’re on a team, it gets cut again.
That’s why more agents are asking hard questions about who’s really earning what, and whether those splits are still worth it.
What Percentage Do Most Real Estate Agents Take?
Here’s data from List With Clever showing the average commission in California.
Across the U.S., most agents work under a commission model that averages between 5% and 6% of the sale price, with the total divided between both sides of the deal. That means 2.5% to 3% per agent, before the brokerage split.
Nationally, the average real estate sales agent earns $58,960 per year, while brokers average closer to $72,000. But those numbers only tell part of the story. Where you work, and how you work, matters.
Dual agency can tilt that percentage in the agent’s favor. If one person represents both buyer and seller (which is only legal in some states), they may retain the full commission. But that scenario comes with ethical risks and legal limitations.
Let’s talk about range. In high-price states like California or New York, commissions might drop to 4.5% simply because the home prices are so high. In Alabama or Georgia, that number may hold steady at 5.5% or 6%.
For a solo agent, that could mean 2.5% of a $300,000 sale, or $7,500 before any deductions. Referral-only agents might earn 20–25% of another agent’s commission, without ever stepping into a showing.
To visualize this:
- 1% of $500,000 = $5,000
- 2% of $400,000 = $8,000
- 3% of $350,000 = $10,500
- 6% of $250,000 = $15,000 (split between both agents)
When agents think they’re getting 3%, they often end up with much less after fees, splits, and overhead.
Commission Splits: What Agents Actually Keep
The biggest misunderstanding in real estate? That an agent’s commission is all theirs to keep.
Let’s say you earn a 3% commission on a $400,000 sale, $12,000 total. If you’re on a 70/30 split with your broker, you’re only taking home $8,400. Now subtract office dues, tech subscriptions, marketing charges, and transaction coordination fees. The real number shrinks fast.
Team agents may split commissions with a team lead or referral partner, further cutting into earnings. Even “100% commission” brokerages aren’t always transparent, many load on monthly dues, E&O insurance premiums, or mandatory marketing systems.
Real Agent Earnings: Myths vs. Reality
Here’s what the average agent won’t tell you: income in real estate isn’t just variable, it’s unpredictable.
Median earnings in the U.S. are around $58,960 per year,, but that includes top performers and part-timers alike. The agents earning $200,000+ usually focus on volume or high-end markets, and they often build their business around repeat and referral clients.
So what pays better, luxury listings or doing five $250K deals a month? It depends. Luxury brings prestige and bigger checks, but competition is fierce and timelines are longer. Volume agents often earn more consistently, even if individual deal commissions are smaller.
Part-time agents typically bring in $20,000 to $40,000 per year. And while many aspire to scale, income gaps can make that leap hard to time.
And yes, deals fall through. If a client backs out at the eleventh hour, the agent doesn’t get paid. That’s why every agent, especially new ones, needs a buffer and a plan.
First-year agents, in particular, should be cautious.
Earning $100K out of the gate is possible, but rare. A better target is building your systems, learning how to close, and keeping as much of your earned commission as possible. That’s where the right brokerage model can make all the difference.
How Flat-Fee & 100% Commission Brokerages Work
Not all “100% commission” brokerages are created equal.
Many promise full commission, only to stack on hidden tech fees, desk dues, franchise charges, or minimum production quotas that quietly chip away at your income.
We made the model simple on purpose: $100/year and $100 per transaction. That’s it.
No monthly fees. No surprise charges. No commission splits. Who does this model work for?
- Side Hustlers: Agents working part-time or holding licenses primarily for friends, family, or referrals keep more of what they earn without overhead stress.
- Full-Time Producers: High-volume agents tired of watching 20%–30% of every check vanish to brokerage overhead can reclaim thousands every year.
- Referral-Only Licensees: Some of our agents earn from passive referrals while focusing on other careers. With no commission split and full payout on referral checks, it’s a low-effort, high-return setup.
Every Realty Hub agent also gets E&O insurance included, a cost that other brokerages often tack on mid-contract. When you know your costs upfront, you can price your services confidently and plan your business with certainty.
How to Increase Your Commission Without Raising Rates
You don’t need to charge more to earn more, you need to keep more.
- Build a referral pipeline: Relationships fuel repeat business. Every satisfied client is a future lead.
- Offer tiered services: Some clients need full concierge-level help. Others just want help with paperwork. Match your service (and price) to their needs.
- Control your marketing stack: Use your own CRM, digital ads, and email systems so you’re not paying for tools you don’t use.
- Avoid bloated overhead: High broker splits and hidden tech charges aren’t necessary to run a professional business. We’ve proven that.
- Stay licensed with minimal effort: Can’t commit to full-time real estate? Our referral-only setup allows you to generate passive income without monthly commitments.
Smart agents aren’t just selling homes, they’re running businesses. And every dollar you keep matters.
How Much Should You Make as an Agent?
If you’re here, chances are you’re not just curious, you’re re-evaluating.
Maybe you’re wondering if your commission split is fair. Or why your brokerage takes a bigger cut than you ever expected. Or whether you’re truly maximizing your earnings for the effort you put in.
Whatever the case, here’s the truth: It’s not just about the gross percentage you’re promised, it’s about the net you keep.
Ask yourself:
- Are you keeping enough of each commission to justify your brokerage’s fees?
- Does your current setup match the way you work, part-time, full-time, or somewhere in between?
- Is your income structure designed to grow with you?
At Realty Hub, we believe the right brokerage shouldn’t just support your work style, it should elevate it. That’s why we built a model that’s lean, predictable, and puts agents first.
Ready to Keep More of What You Earn?
Why don’t I keep more of it? Here’s how we solve that:
- Flat-Fee Model: Keep 100% of your commission for just $100/year and $100 per transaction. No desk fees, no monthly dues, no surprises.
- Built for Autonomy: Whether you’re full-time, part-time, or referral-only, Realty Hub lets you run your business your way, with support when you need it, and independence when you don’t.
- Compliance + Clarity: We include E&O coverage and don’t require REALTOR® membership, saving you hundreds while keeping your license active and protected.
This is for agents who are ready to stop giving away 20%–30% of their check just to use someone else’s logo. It’s not for those who need hand-holding, office space, or daily quotas to stay productive.
If you’re ready to work smarter, take home more, and build a business that actually works for you, you’re ready for Realty Hub.
👉 Join Realty Hub today. Let’s rebuild what real estate income should look like, together.
Worries and Questions Agents Are Asking
Is it worth switching brokerages for a better split?
If you’re losing 20–40% of your income to splits and don’t feel the value in return (leads, mentorship, systems), switching could be the most financially sound move you make. Our agents often report immediate take-home gains after making the switch.
Can I negotiate a lower rate with clients without losing credibility?
Absolutely. Many clients appreciate transparent pricing. Agents who offer tiered service models (flat-fee, limited scope, or full service) can create pricing options without devaluing themselves. The key is in communicating the value, not just the percentage.
Do buyers ever cover agent fees in their mortgage?
In some transactions, buyers can roll closing costs, including agent commissions, into their mortgage, but it depends on the loan program and lender. Agents should be prepared to explain and navigate these scenarios clearly.
How do part-time agents survive with inconsistent income?
By keeping overhead low and choosing flexible broker models. Realty Hub’s pricing makes it possible for part-time agents to stay active without worrying about monthly minimums or sunk costs when business slows down.
Am I giving too much of my commission to my broker?
If you’re working hard and watching thousands disappear to a brokerage that doesn’t offer real support, it’s time to explore alternatives. Our flat-fee model puts control (and money) back in your hands.
Clients won’t trust me if I’m not with a big-name firm.
That myth is outdated. Today, clients care more about your professionalism, responsiveness, and track record than the logo on your card. In fact, many agents find that independence builds stronger trust.
I’m being pushed to join REALTOR® associations I don’t want.
It’s your license, your business. Contrary to what some brokers suggest, association membership isn’t legally required in every case.