When most people think about real estate agents, they imagine big commission checks, but what does that actually look like in 2025?
The truth is, agent income isn’t nearly as straightforward as many assume. Yes, agents are paid through commission, but what they keep after splits, fees, and expenses is a different story altogether.
In this article, we’ll break down exactly how much agents make per sale, how commissions are calculated, what affects net income, and how you can increase your earnings, whether you’re working full-time, part-time, or as a referral-only agent.
The Typical Commission Rate in 2025
Historically, the standard real estate commission hovered around 5% to 6% of the home’s sale price.
That total fee was typically paid by the seller and split between the listing agent and the buyer’s agent. But as of August 2024, the landscape has changed.
The National Association of REALTORS® (NAR) settlement reshaped how commissions are handled, no longer are buyer and seller commissions automatically linked. Today, buyers must negotiate directly with their agent to determine compensation, while sellers only pay for their side of representation.
This shift has prompted greater transparency but also introduced new complexity into how agents get paid.
How Commissions Are Split Between Agents
In a traditional transaction, the total commission, let’s say 6%, is divided evenly between the seller’s agent and the buyer’s agent. Each typically receives 3%, although in some markets the split is more competitive, such as 2.5%/3.5% or 2.75%/3.25%, depending on how the listing is structured and the agent’s leverage.
Then there’s dual agency. In this scenario, one agent represents both the buyer and seller and may retain the full commission. However, dual agency is only legal in some states, and where it is, strict disclosure requirements apply. While it can lead to higher earnings, it also carries risks and limitations in how agents can advocate for each side.
What About Referral Commissions?
Referral commissions are often overlooked, but they can provide steady income, especially for agents who prefer flexibility or work part-time. Typically, referral agents earn 20% to 35% of the commission earned by the receiving agent. That means on a $10,000 commission, the referring agent might earn between $2,000 and $3,500, minus any brokerage fees.
Referral income can be ideal for agents who don’t want to join the MLS, avoid association dues, or simply want to keep their license active without handling transactions directly. At Realty Hub, many of our agents take advantage of this low-overhead, passive income model.
One thing to keep in mind: no matter your role, buyer’s agent, listing agent, or referral partner, you only get paid if the deal closes. Real estate is performance-based. That’s why systems, follow-through, and broker support matter.
What Affects How Much Agents Make Per Sale?
Agent vs. Broker Split Explained
Just because a commission is $10,000 doesn’t mean the agent takes home that full amount. Most agents split their earnings with their brokerage. Newer agents often start on a 50/50 split. More experienced agents may negotiate a 70/30 or even 85/15 arrangement.
Some brokerages offer a “cap-out” model. For instance, once an agent pays the brokerage $22,000 in splits during the year, they then keep 100% of future commissions. It’s a reward structure for high producers, but for agents closing just a handful of deals per year, caps are rarely reached.
Fees That Eat Into Your Earnings
Broker splits are just the beginning. Traditional brokerages often charge for everything else: franchise fees, desk fees, tech platform access, E&O insurance, training programs, and administrative support. These extras can reduce your net income drastically.
In many cases, agents are also required to join their local REALTOR® association and MLS, with combined dues reaching $1,000–$1,500+ annually. While these memberships offer benefits, not every agent needs them, especially if they aren’t working full-time.
Flat Fee Brokerages vs. Traditional Models
There’s a better alternative to the split-based system: flat-fee brokerages. At Realty Hub, our agents pay just $100 per year and $100 per closed transaction. That’s it. No franchise fees. No hidden tech charges. No forced subscriptions. This model allows our agents to keep 100% of their commission, whether they close one deal a year or 100.
Income Examples: How Much Agents Make Per Transaction
Sample Commission Math on a $200,000 Home Sale
Let’s say a home sells for $200,000 and the total commission is 6%. That’s $12,000 in gross commission. If it’s a standard deal, this is split evenly between the buyer’s agent and the seller’s agent, giving each side $6,000.
Now, if the agent is on a 50/50 split with their brokerage, they’ll only take home $3,000 from that $6,000 share. That number is pre-tax and doesn’t include marketing costs, licensing fees, or association dues. In reality, the net profit could be far less.
This is where many agents get blindsided: the check might say $6,000, but what lands in your bank account is often closer to half once everything is paid out.
What a Referral Agent Makes on the Same Sale
Now imagine instead you referred that client to another agent. Let’s say the buyer’s agent earns a $6,000 commission, and you negotiated a 25% referral fee. That’s $1,500 in commission income without attending a single showing or managing the transaction.
Referral work is especially attractive for agents who have another career, are semi-retired, or simply want to earn with minimal overhead. It’s also a great way to stay active without taking on the full-time responsibilities of traditional agency.
High-Volume vs. High-Price Agent Scenarios
Here’s where strategy comes in. A single $1 million sale with a 3% commission earns an agent $30,000 before splits and fees. That could easily outpace ten $200,000 transactions, which might collectively generate the same amount, but with ten times the effort.
Agents who specialize in luxury homes, investment properties, or relocation services often command higher average commissions. They may not work with as many clients, but the payoff per transaction is significantly higher.
Who Earns the Most? Agent Specialties Compared
Full-Time Residential Agents
Most full-time residential agents in their early years earn between $40,000 and $80,000 annually. That range depends on deal volume, home prices in their market, and, critically, their brokerage model.
Over time, income increases through client referrals and repeat business. Agents who stick with it, build strong systems, and manage expenses well can far exceed that range in later years. But the early years are financially tight for many, especially under traditional commission splits.
Luxury & Investment Specialists
Agents who work in luxury or investment-focused real estate often earn more per transaction. These markets require deeper knowledge, of financing structures, negotiation strategy, or local regulations, but the payout can be substantial.
Instead of chasing volume, these agents focus on a smaller number of high-value transactions. That means fewer deals, more preparation, and often, larger checks. For agents looking to scale income while preserving time, this niche can be ideal.
Referral-Only Agents
Referral agents are often overlooked, but they’re one of the most flexible and cost-effective paths in real estate. These agents refer buyers or sellers to another licensed professional, earn a negotiated referral fee, and avoid the responsibilities of full-service transactions.
At Realty Hub, many of our referral agents maintain an active license, generate passive income, and skip MLS fees entirely. Whether they’re working another job, taking time off, or pivoting their career, the referral path provides a steady income stream without traditional overhead.
How Much Will YOU Make Per Sale?
Factors That Determine Your Income
There’s no one-size-fits-all number. What you earn per sale depends on several key variables:
- Your Market: Agents in higher-cost areas naturally earn more per transaction. A 3% commission on a $700,000 home is a lot more than on a $180,000 one.
- Your Brokerage Model: Are you handing over 30% or 50% of every commission? Or are you keeping it all after a simple transaction fee? Your model matters more than most realize.
- Your Transaction Volume: Consistency is key. One big sale is great, but a steady stream of closings, even at lower prices, adds up fast.
- Your Cost Control: From marketing and CRM tools to board dues and licensing, expenses matter. Controlling them can mean the difference between a sustainable business and burnout.
Why Brokerage Choice Matters More Than You Think
Traditional brokerages take 20%–50% of your commission and still charge you tech fees, desk fees, and mandatory dues. That structure might work for some, but for many agents, it means working harder just to tread water.
At Realty Hub, we’ve flipped that script. Our flat-fee model means you pay just $100 a year and $100 per transaction. That’s it. No surprise deductions, no franchise overhead, and no pressure to hit quotas. Just a simple, predictable model that puts you in control of your income.
If you’re tired of doing all the work and watching your broker take half the check, it’s time to explore a flat-fee model. Here’s how Realty Hub helps you keep 100% of your commission.