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How Much Does a Realtor Make on a Sale? A Real Look at Commission and Income

Apr 04, 2025

Understanding Realtor Earnings: What Happens Behind Every Home Sale

1. How Realtors Get Paid

When I first started in real estate, I assumed the job was all about showing houses and collecting big checks. The truth? It’s a commission-based grind, with every dollar earned tied directly to performance. Realtors typically get paid through a percentage of the home’s sale price. This is called the real estate commission.

In most U.S. markets, the standard commission ranges from 5% to 6% of the home’s sale price, which is usually split between the buyer's and seller's agents. But here’s the thing: agents don’t walk away with that full amount. Let’s dive into how much a realtor actually makes per sale.

2. How Much Does a Realtor Make on a Sale?

Let’s say a home sells for $400,000 with a 6% commission rate. That’s $24,000 in total commission. Sounds like a lot, right? But that gets split:

  • 3% to the buyer’s agent ($12,000)
  • 3% to the seller’s agent ($12,000)

Now here’s where it gets interesting. Most agents don’t work alone—they’re part of a brokerage, which also takes a cut. Depending on the agent’s agreement, the brokerage might take 30%-50% of their commission. So that $12,000 could easily become $6,000 or less in the agent’s pocket.

2.1 Variables That Affect Income

The answer to “how much does a realtor make on sale” really depends on a few variables:

  • Sale price of the home
  • Commission rate (some clients negotiate)
  • Commission split with broker
  • Any referral fees (if another agent sent the client)

So while some agents can make $10,000+ on a single sale, others may walk away with just $2,000 after all deductions.

3. Commission Splits: The Reality Behind the Numbers

I used to think that closing a deal meant pocketing thousands immediately. Then came my first real commission split breakdown. My brokerage took 40%, and I paid $1,200 in marketing costs, plus $500 for a transaction coordinator. My $10,000 gross became around $4,300. It was eye-opening.

3.1 Sample Breakdown on $500,000 Sale

  • 6% commission = $30,000
  • Split with buyer’s agent = $15,000
  • Broker split (50/50) = $7,500
  • Expenses (photography, staging, marketing) = $2,000
  • Final net = $5,500

This is why most realtors focus on volume—not just one big sale.

4. A Real Story: My First $500K Sale in New Jersey

It was a beautiful colonial in Morristown, NJ. The seller was a retired teacher downsizing after 30 years. I worked with her for two months, prepping, staging, and holding open houses every weekend. The home sold in 12 days for full asking price—$500,000.

I was thrilled. But once the dust settled, and I paid the 50% broker cut, my marketing costs, and other fees, I took home around $6,000. For 2 months of work, that’s roughly $3,000 a month. Not bad, but not luxury money either. It taught me that income depends on strategy, not just effort.

5. Hidden Costs That Affect Realtor Income

Realtors are essentially small business owners. That means they shoulder business expenses that eat into their earnings. Here are some hidden costs I wish I knew before starting:

  • MLS fees: Can range from $500 to $1,500 annually
  • Marketing: Signs, ads, business cards, online listings
  • Gas and mileage: Especially if you're driving clients
  • Continuing education: Required to maintain your license

These costs mean that even after a big sale, your take-home may be much lower than expected.

6. Tips to Maximize Income as a Realtor

If you’re serious about increasing your income as a real estate agent, here’s what helped me:

6.1 Focus on Higher-Priced Listings

Higher-priced homes = higher commissions. It’s more competitive, but worth it.

6.2 Build a Referral Network

I now get over 60% of my clients from referrals. Less marketing spend, more trust upfront.

6.3 Master Your Market

Knowing your local market inside and out positions you as the go-to expert, which builds long-term credibility and client loyalty.

6.4 Offer Real Value

I don’t just sell houses—I help people transition to a new chapter in life. That mindset has led to stronger client relationships and repeat business.

If you’re exploring a real estate career and wondering how much does a realtor make on sale, it’s important to see the full picture—not just the numbers, but the journey behind them.

Want to connect with realtors or explore how you can grow your career or property deals? Visit Your Private Space for expert guidance and tools to start or scale your journey today.