Real estate agents typically get paid after a sale closes, not on a set schedule. Most earn commission-only income, with payouts ranging from the next day to two weeks after closing, depending on the brokerage’s process and how quickly documents are submitted and approved.
Here’s the short version: most agents don’t get paid on a predictable schedule. You don’t earn a dime until a deal closes, the paperwork is squared away, and the broker gives the green light.
In this guide, we’ll break down exactly how and when real estate agents get paid. We’ll walk through the full process, from listing to payout, and share the insider truths most brokerages gloss over.
Let’s start with what actually drives an agent’s paycheck, and why timing matters more than most new agents realize.
Understanding Real Estate Commission Basics
Let’s clear this up right away: real estate agents are not salaried employees. They don’t collect a paycheck every other Friday. Instead, most agents are independent contractors who earn income only when a deal closes.
That means if no property is bought or sold, there’s no income.
In traditional models, agents are 100% commission-based, paid per sale, not per hour or per week. What that really means is simple: some agents might go weeks, or even months, without a paycheck.
For new agents just entering the field, this can come as a shock. It’s one of the reasons so many promising agents leave the business early, not because they can’t sell, but because they can’t wait.
What Triggers an Agent’s Paycheck?
An agent’s commission is earned at closing. This is the moment when:
- All parties have signed final documents,
- The sale has officially funded, and
- Ownership has transferred.
Once that happens, the title company releases the funds. But the agent doesn’t receive them directly. Instead, the payment goes to the agent’s brokerage, which then processes and disburses the agent’s portion, minus any splits, fees, or required deductions.
How Real Estate Agents Get Paid Step-by-Step
If you’re new to real estate, here’s how your commission moves from contract to cash—step by step.
- Sign a Listing or Buyer Agreement: Before an agent can legally earn commission, there needs to be a representation agreement in place. This outlines who the agent represents, what the expectations are, and what the commission percentage will be if a sale occurs.
- Close the Transaction: After weeks (or months) of client work, property showings, offer negotiations, and inspections, the deal heads to the closing table. Once funds are wired and paperwork is finalized, the transaction is officially recorded.
- Submit Documents to Broker: To release payment, agents must submit a complete transaction file to their brokerage. This includes:
– Purchase contract
– Seller disclosures
– Final closing statement
– Any amendments or inspection addendums - Broker Verifies and Disburses Payment: Once the file is reviewed and approved by your broker, the commission is processed. Some brokerages issue paper checks. Others offer ACH or direct deposit. At Realty Hub, we make payouts simple, quick, and digital, because you shouldn’t have to wait or wonder when your hard-earned money will show up.
So… When Do Agents Actually Get Paid?
Let’s break this down into real-world timelines, because “at closing” isn’t always as immediate as it sounds.
Fastest Case: Next Day
Some tech-forward brokerages (including Realty Hub) offer next-day payouts after your file is approved. If all documents are in order and the deal is clean, you could see your funds hit your account the morning after closing.
Common Case: 1–3 Business Days After Closing
Most brokerages process commission within a few days. You’ll typically receive your payout within 72 hours, assuming there are no errors or missing paperwork.
Slowest Case: 1–2 Weeks
Some brokerages operate on slower timelines due to manual compliance checks or admin bottlenecks. In the worst cases, agents report waiting up to two weeks or more for a simple payout.
What If a Deal Falls Through? Do You Still Get Paid?
This is one of the hardest lessons in real estate: if the deal doesn’t close, you don’t get paid.
You can spend hours, days, even months working with a buyer, only to have them back out at the last minute. Maybe the loan falls through. Maybe they vanish. Maybe the seller decides not to sell. Whatever the cause, no closing = no commission.
We’ve seen agents pour themselves into deals only to walk away empty-handed. One agent spent three months working with a family, only for them to back out 24 hours before closing.
This is the financial reality of the business, and it’s why so many agents rely on savings, a spouse’s income, or part-time work to stay afloat until their pipeline is solid.
How Commission Splits Affect Your Payout
For many agents, the excitement of a successful closing quickly fades once the numbers hit paper. Why? Because what you earn isn’t just based on the sale price, it’s shaped by the commission structure, your brokerage’s cut, and any fees taken off the top.
Common Commission Breakdown (Example: $400,000 Sale)
- A 6% total commission on a $400,000 sale equals $24,000.
- That’s typically split evenly between the listing and buying sides, $12,000 each.
- If you’re the buyer’s agent under a 70/30 split, your broker keeps $3,600.
- That leaves you with $8,400 gross, before taxes, marketing expenses, or association dues.
This is where agents start to notice how much money disappears between the closing table and their bank account. The percentage you keep can shrink fast if you’re covering MLS dues, tech fees, desk fees, franchise fees, or monthly brokerage minimums.
How Do Referral Agents Get Paid?
Referral agents are often overlooked in the commission conversation, but they play a big role, especially in markets where agents hold a license but don’t work deals full-time.
Here’s how it works:
- You refer a client to another licensed agent.
- That agent closes the deal.
- You earn a referral fee, usually 20–30% of the agent’s side of the commission.
To make this official, a referral agreement needs to be signed before the transaction starts. It outlines the payment terms and guarantees you get your share at closing.
For agents looking to keep their license active without the pressure of daily transactions, this is a smart, low-cost way to stay in the game.
Tips to Speed Up Your Commission Payout
If waiting for your money is causing stress, here are smart ways to avoid the holdup:
- Submit a clean, complete transaction file: No missing documents, no errors.
- Use e-signature tools: They prevent delays caused by missed initials or signatures.
- Work with brokerages that automate compliance – Manual reviews take time.
- Avoid brokers with slow admin teams: If your broker is on vacation, you might be too… from your paycheck.
- Ask about ACH or direct deposit: Don’t rely on snail mail for a paper check.
Real Estate Income Isn’t Predictable, But It Can Be Fair
If there’s one truth about real estate, it’s that your paycheck never comes on a set schedule. Whether you’re new or experienced, the path from client contact to commission is rarely straightforward, and for many agents, that unpredictability is the hardest part.
Should You Switch to a Flat-Fee Brokerage?
If you’ve ever felt the sting of splitting thousands of dollars with a brokerage that added little to the process, it’s time to re-evaluate the model.
- If waiting weeks to get paid isn’t working for you…
- If you want to know exactly what you’ll pay on every deal…
- If you’re tired of giving up 30%+ of your commission for generic tools and office overhead…
Realty Hub offers a smarter path forward:
- $100/year + $100 per transaction
- 100% commission model, keep what you earn
- No franchise fees, no desk time, no sales quotas
- Perfect for full-time, part-time, and referral-only agents
- Broker support when you need it, independence when you don’t
You became an agent to build your business. We’re here to make that easier.
