{"id":452484,"date":"2026-03-23T07:35:22","date_gmt":"2026-03-23T11:35:22","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=452484"},"modified":"2026-03-23T07:35:29","modified_gmt":"2026-03-23T11:35:29","slug":"how-do-real-estate-agents-get-paid","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/how-do-real-estate-agents-get-paid\/","title":{"rendered":"How Do Real Estate Agents Get Paid?"},"content":{"rendered":"\n<figure class=\"wp-block-pullquote\"><blockquote><p class=\"highlight\"><strong>\u270f\ufe0f<\/strong> <strong>Editor&#8217;s Note: <\/strong>Realtor Associations, agents, and MLS&#8217; have started implementing changes related to the NAR&#8217;s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. <strong><a   href=\"https:\/\/www.houzeo.com\/blog\/nar-settlement\/\" target=\"_blank\" rel=\"noreferrer noopener\">Learn how NAR&#8217;s settlement affects home sellers<\/a>.<\/strong><\/p><\/blockquote><\/figure>\n\n\n\n<p class=\"margin-top-28\" id=\"commission\">90% of people opt for a real estate agent to sell their homes. Real estate agents get paid around <a   href=\"https:\/\/www.houzeo.com\/blog\/what-percentage-do-realtors-make\/\" target=\"_blank\" rel=\"noreferrer noopener\">3% to 6%<\/a> commission. For example, on a $400,000 home sale, the total commission could amount to $24,000. <\/p>\n\n\n\n<p>\u200b\u200bWhen you sell a house with an agent&#8217;s assistance, you must pay the aforesaid commission. An agent helps you set comparative prices and helps with negotiations during the sale process. You can only list your home on the MLS through an agent. <br><br>Is there a way to make any savings? Yes, you can save thousands of dollars if you sell a house via a Flat Fee MLS company. Houzeo&#8217;s&nbsp;<a   href=\"https:\/\/www.houzeo.com\/pricing\" target=\"_blank\" rel=\"noreferrer noopener\">Flat Fee plans<\/a>&nbsp;get you on the MLS and eliminate the 3% listing agent commission.<\/p>\n\n\n\t<div style=\"display: block ;\" class=\"home-page-quick-listing-wrapper  content-ql-new-ui \" main-title=\"List on the MLS and Save Thousands \ud83d\udcb2\" list-title=\"List FSBO on MLS\" list-item-1=\"Upfront pricing - no hidden fees\" list-item-2=\"100% online - fast listing, faster changes\" list-item-3=\"Rated 4.9 stars on Google Reviews &amp; Trustpilot\" ql-button=\"\" minimize=\"true\" sidebar=\"\" contact-title=\"\" contact-content=\"\" siteurl_qlb=\"https:\/\/www.houzeo.com\" cash-ql=\"false\"><\/div>\n\t<script>\t\t\n\n\t\tdocument.addEventListener(\"DOMContentLoaded\", function () {\n\t\t\tconst isMobile = window.screen.width <= 768;\n\n\t\t\t\/\/ Global flags to prevent multiple loads\n\t\t\twindow.quickListingCssLoaded = window.quickListingCssLoaded || false;\n\t\t\twindow.quickListingJsLoaded = window.quickListingJsLoaded || false;\n\n\t\t\tconst cssURL = 'https:\/\/www.houzeo.com\/css\/quick-listing-block-v3.css?v=9.8';\n\t\t\tconst jsURL  = 'https:\/\/www.houzeo.com\/js\/quick-listing-block-v3.js?v=9.8';\n\n\t\t\t\/\/ \u2705 Load CSS immediately on mobile only\n\t\t\tif (isMobile && !window.quickListingCssLoaded) {\n\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\tloadCSS(cssURL);\n\t\t\t}\n\n\t\t\t\/\/ \u2705 Define JS loader (and CSS for desktop)\n\t\t\twindow.quickListingJsLoadfn = function () {\n\t\t\t\tif (!window.quickListingJsLoaded) {\n\t\t\t\t\twindow.quickListingJsLoaded = true;\n\n\t\t\t\t\t\/\/ On desktop: load CSS here (lazy), since it wasn't loaded initially\n\t\t\t\t\tif (!isMobile && !window.quickListingCssLoaded) {\n\t\t\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\t\t\tloadCSS(cssURL);\n\t\t\t\t\t}\n\n\t\t\t\t\tloadScript(jsURL);\n\n\t\t\t\t\t\/\/ Remove listener after load\n\t\t\t\t\tdocument.removeEventListener(isMobile ? 'touchstart' : 'mousemove', window.quickListingJsLoadfn);\n\t\t\t\t}\n\t\t\t};\n\n\t\t\t\/\/ \u2705 Add the correct event listener\n\t\t\tconst quickListingEvents = isMobile ? ['touchstart'] : ['mousemove', 'scroll'];\n\n\t\t\tquickListingEvents.forEach((eventName) => {\n\t\t\t\tdocument.addEventListener(eventName, window.quickListingJsLoadfn, {\n\t\t\t\t\tpassive: true,\n\t\t\t\t\tonce: true,\n\t\t\t\t});\n\t\t\t});\n\t\t\t\n\n\t\t\t\/\/ \u2705 Helpers\n\t\t\tfunction loadCSS(href) {\n\t\t\t\tconst link = document.createElement('link');\n\t\t\t\tlink.rel = 'stylesheet';\n\t\t\t\tlink.href = href;\n\t\t\t\tdocument.head.appendChild(link);\n\t\t\t}\n\n\t\t\tfunction loadScript(src) {\n\t\t\t\tconst script = document.createElement('script');\n\t\t\t\tscript.src = src;\n\t\t\t\tscript.async = true;\n\t\t\t\tdocument.head.appendChild(script);\n\t\t\t}\n\t\t});\n\t<\/script>\n\t\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"how-commissions-work\"><strong>How Do Commissions Work in Real Estate?<\/strong><\/h2>\n\n\n\n<p><a   href=\"https:\/\/www.houzeo.com\/pros\/real-estate-agents-near-me\" target=\"_blank\" rel=\"noreferrer noopener\">Real estate agents<\/a> get paid a percentage of commission on the property value at the end of the sale. This commission is split between the listing and the buyer agent. This can be an equal split or an agreed percentage between the two parties. <\/p>\n\n\n\n<p>Sellers usually pay these commissions. When you employ a real estate agent, you must undergo a <a   href=\"https:\/\/www.houzeo.com\/blog\/listing-agreement\/\" target=\"_blank\" rel=\"noreferrer noopener\">listing agreement<\/a>. This agreement outlines important details, like the commission structure, agreement duration, listing<strong> <\/strong>price, etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"commission-split\"><strong>Example of a Real Estate Commission?<\/strong><\/h2>\n\n\n\n<p>Agents cannot work independently and cannot receive any fee or commission directly from a buyer or seller. Brokers can participate in transactions themselves or hire agents to handle the work. <\/p>\n\n\n\n<p id=\"mntl-sc-block_1-0-33\">For example: On a home worth $500,000 with a 6% commission rate, the total commission is $30,000. The listing and buyer brokers each get 50% of the commission, i.e. $15,000 each.<\/p>\n\n\n\n<p>Each broker, along with their respective agents, evenly split the commissions. So, for the $15,000 received by each broker (from the $30,000 total commission), they distribute $6,000 to their agents, assuming a 50-50 split as per their agreement.<\/p>\n\n\n\n<p> Knowing how real estate agents get paid helps you understand the commission structure in a house sale.<gwmw style=\"display:none;\"><\/gwmw><\/p>\n\n\n\n<p><strong>\u00bb <a   href=\"https:\/\/www.houzeo.com\/blog\/how-to-negotiate-real-estate-commission\/#How-Agents-Split-Real-Estate-Commissions?\" target=\"_blank\" rel=\"noreferrer noopener\">How to Negotiate Real Estate Commissions<\/a><\/strong> Find out how you can pay less commissions to the agent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"salary-vs-commission\"><strong>Which Pays Better: Salary vs. Commission<\/strong><\/h2>\n\n\n\n<p>The average <a   href=\"https:\/\/www.houzeo.com\/blog\/what-does-a-real-estate-agent-do\/\" target=\"_blank\" rel=\"noreferrer noopener\">real estate agent<\/a> salary in the United States is\u00a0<a   href=\"https:\/\/www.salary.com\/research\/salary\/benchmark\/real-estate-agent-salary\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">$46,014<\/a>\u00a0as of 2024. The range typically falls between\u00a0$44,951\u00a0and\u00a0$58,528. While on average, an agent closes around 10-12 deals a year.<gwmw style=\"display:none;\"><\/p>\n\n\n\n<p>Commission-based agents are generally more motivated to sell your property at the asking price. If they sell your property for a higher price they make more commission. This incentivizes agents to secure a favorable transaction. <\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"other-income-opportunities\"><strong>What are the Other Income Opportunities?<\/strong><\/h3>\n\n\n\n<p>In addition to commissions, <a   href=\"https:\/\/www.houzeo.com\/blog\/flat-fee-realtor\/\" target=\"_blank\" rel=\"noreferrer noopener\">Realtors<\/a> can earn income through referral fees and bonuses.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Referral Fees: <\/strong>The industry standard for referral fees is <a   href=\"https:\/\/www.leanprop.com\/answers\/referral-fee\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">25%<\/a>. When agents refer clients to other agents or brokerages, they receive this fee as compensation.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bonus: <\/strong>The agent receives a bonus from the brokerage for bringing potential buyers within a specific time frame.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"no-sale-no-pay\"><strong>What Happens if the Sale Doesn&#8217;t Close?<\/strong><\/h2>\n\n\n\n<p>There are circumstances where you may still have to pay the broker&#8217;s commission even if the sale isn&#8217;t finalized. You are only responsible for payment if it is explicitly stated in the contract.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Seller&#8217;s Decision to Withdraw:<\/strong> When the seller chooses not to proceed with the sale due to changing circumstances or preferences.<\/li>\n\n\n\n<li><strong>Deed Signing Challenges:<\/strong> Instances where homeowners refuse to <a   href=\"https:\/\/www.houzeo.com\/blog\/deed-of-trust\/\" target=\"_blank\" rel=\"noreferrer noopener\">sign the deed<\/a>, delaying or halting the transaction.<\/li>\n\n\n\n<li><strong>Fraudulent Practices:<\/strong> If there is a misrepresentation of property details or non-disclosure of relevant information.<\/li>\n\n\n\n<li><strong>Failure to Transfer Property Possession:<\/strong> When the seller cannot transfer possession of the property to the buyer within the agreed time.<\/li>\n\n\n\n<li><strong>Imposing Unauthorized Terms:<\/strong> Situations where one party attempts to impose terms not outlined in the listing agreement.<\/li>\n\n\n\n<li><strong>Title Issues and Liens:<\/strong> For title defects or outstanding <a   href=\"https:\/\/www.houzeo.com\/blog\/what-is-a-lien\/\" target=\"_blank\" rel=\"noreferrer noopener\">liens on the property<\/a> which need resolution before the sale.<\/li>\n\n\n\n<li><strong>Mutual Agreement to Cancel Transaction:<\/strong> Instances where both parties (seller and buyer) agree to cancel the transaction due to various reasons.<\/li>\n<\/ul>\n\n\n\n<p>Seek help from a professional, who will guide you to get through this swiftly.<\/p>\n\n\n\t<div  class=\"hfsWidget \" data-widget-title=\"Find Real Estate Attorney Now\" data-widget-list-item1=\"1st item\" data-widget-list-item2=\"2nd item\" data-widget-list-item3=\"3rd item\" data-widget-type=\"vendor\" data-widget-vendor-type=\"real_estate_attorney\" data-widget-state=\"us\" data-widget-city=\"\" data-widget-redirect-url=\"https:\/\/www.houzeo.com\/pros\/real-estate-attorneys-near-me\" data-widget-redirect-text=\"Search real estate attorneys in US\" data-widget-button-url=\"https:\/\/www.houzeo.com\/pros\/real-estate-attorneys-near-me\" data-widget-button-text=\"Find a Real Estate Attorney\" data-widget-min-price=\"0\" data-widget-max-price=\"0\" data-widget-min-area=\"0\" data-widget-max-area=\"0\" data-widget-sidebar=\"false\">\n       \n    <\/div>\n\t<script>\n    document.addEventListener(\"DOMContentLoaded\", function() {        \n        if (!window.assetsLoaded) {\n            window.assetsLoaded = true;\n            var version = (typeof customData !== 'undefined' && customData.customVersion) ? customData.customVersion : '1.0';\n            loadScript('\/blog\/wp-content\/themes\/houzeo-new-design\/js\/hfs-widget.js?version=' + version);\n            loadCSS('\/blog\/wp-content\/themes\/houzeo-new-design\/css\/hfs-widget.css?version=' + version);\n        }    \n    });\n\t\t\n\t<\/script>\n\t\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"conclusion\"><strong>Bottom Line<\/strong><\/h2>\n\n\n\n<p>A Realtor&#8217;s income is based on factors like commission structure, salary options, and additional income streams. While commissions are the primary source of earnings, agents may also receive referral fees and bonuses. <\/p>\n\n\n\n<p>Usually, realtors take 3-6%commission when you use their services. This can increase up to 10-12% if you take <a   href=\"https:\/\/www.houzeo.com\/blog\/how-much-are-closing-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">closing costs<\/a> and repair costs into account.<\/p>\n\n\n\n<p>If you want to save on a part of this commission structure &#8211; consider listing on an FFM Company. Houzeo&#8217;s Flat Fee plans can help you list your house on the <a   href=\"https:\/\/www.houzeo.com\/blog\/what-is-mls-in-real-estate\/\" target=\"_blank\" rel=\"noreferrer noopener\">MLS<\/a> without an agent. <br><\/p>\n\n\n\t<div style=\"display: block ;\" class=\"home-page-quick-listing-wrapper  content-ql-new-ui \" main-title=\"List on Houzeo and Save Thousands\ud83d\udcb2\" list-title=\"List FSBO on MLS\" list-item-1=\"Upfront pricing - no hidden fees\" list-item-2=\"100% online - fast listing, faster changes\" list-item-3=\"Rated 4.9 stars on Google Reviews &amp; Trustpilot\" ql-button=\"\" minimize=\"true\" sidebar=\"\" contact-title=\"\" contact-content=\"\" siteurl_qlb=\"https:\/\/www.houzeo.com\" cash-ql=\"false\"><\/div>\n\t<script>\t\t\n\n\t\tdocument.addEventListener(\"DOMContentLoaded\", function () {\n\t\t\tconst isMobile = window.screen.width <= 768;\n\n\t\t\t\/\/ Global flags to prevent multiple loads\n\t\t\twindow.quickListingCssLoaded = window.quickListingCssLoaded || false;\n\t\t\twindow.quickListingJsLoaded = window.quickListingJsLoaded || false;\n\n\t\t\tconst cssURL = 'https:\/\/www.houzeo.com\/css\/quick-listing-block-v3.css?v=9.8';\n\t\t\tconst jsURL  = 'https:\/\/www.houzeo.com\/js\/quick-listing-block-v3.js?v=9.8';\n\n\t\t\t\/\/ \u2705 Load CSS immediately on mobile only\n\t\t\tif (isMobile && !window.quickListingCssLoaded) {\n\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\tloadCSS(cssURL);\n\t\t\t}\n\n\t\t\t\/\/ \u2705 Define JS loader (and CSS for desktop)\n\t\t\twindow.quickListingJsLoadfn = function () {\n\t\t\t\tif (!window.quickListingJsLoaded) {\n\t\t\t\t\twindow.quickListingJsLoaded = true;\n\n\t\t\t\t\t\/\/ On desktop: load CSS here (lazy), since it wasn't loaded initially\n\t\t\t\t\tif (!isMobile && !window.quickListingCssLoaded) {\n\t\t\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\t\t\tloadCSS(cssURL);\n\t\t\t\t\t}\n\n\t\t\t\t\tloadScript(jsURL);\n\n\t\t\t\t\t\/\/ Remove listener after load\n\t\t\t\t\tdocument.removeEventListener(isMobile ? 'touchstart' : 'mousemove', window.quickListingJsLoadfn);\n\t\t\t\t}\n\t\t\t};\n\n\t\t\t\/\/ \u2705 Add the correct event listener\n\t\t\tconst quickListingEvents = isMobile ? ['touchstart'] : ['mousemove', 'scroll'];\n\n\t\t\tquickListingEvents.forEach((eventName) => {\n\t\t\t\tdocument.addEventListener(eventName, window.quickListingJsLoadfn, {\n\t\t\t\t\tpassive: true,\n\t\t\t\t\tonce: true,\n\t\t\t\t});\n\t\t\t});\n\t\t\t\n\n\t\t\t\/\/ \u2705 Helpers\n\t\t\tfunction loadCSS(href) {\n\t\t\t\tconst link = document.createElement('link');\n\t\t\t\tlink.rel = 'stylesheet';\n\t\t\t\tlink.href = href;\n\t\t\t\tdocument.head.appendChild(link);\n\t\t\t}\n\n\t\t\tfunction loadScript(src) {\n\t\t\t\tconst script = document.createElement('script');\n\t\t\t\tscript.src = src;\n\t\t\t\tscript.async = true;\n\t\t\t\tdocument.head.appendChild(script);\n\t\t\t}\n\t\t});\n\t<\/script>\n\t\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">Real estate agents and brokers get a fixed percentage on final selling price of a real estate...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">5 mins read<\/span><span class=\"date\">Mar 23, 2026<\/span><\/div>","protected":false},"author":218,"featured_media":459588,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46226],"tags":[31399,31395,31398,31402,31401,31397,31400,31396],"class_list":["post-452484","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller","tag-earnings-of-a-real-estate-agent","tag-how-do-realtors-get-paid","tag-how-do-you-make-money-as-a-realtor","tag-how-does-a-broker-get-paid","tag-how-much-can-a-real-estate-agent-make","tag-how-much-do-brokers-make","tag-how-much-do-realtors-make-per-sale","tag-realty-agent-commission"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Do Real Estate Agents Get Paid? (Updates 2024)<\/title>\n<meta name=\"description\" content=\"How do real estate agents get paid? Real estate agents and brokers earn a commission, usually ranging from 3% to 6% of the selling price.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.houzeo.com\/blog\/how-do-real-estate-agents-get-paid\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Do Real Estate Agents Get Paid? (Updates 2024)\" \/>\n<meta property=\"og:description\" content=\"How do real estate agents get paid? Real estate agents and brokers earn a commission, usually ranging from 3% to 6% of the selling price.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.houzeo.com\/blog\/how-do-real-estate-agents-get-paid\/\" \/>\n<meta property=\"og:site_name\" content=\"Houzeo Blog\" \/>\n<meta property=\"article:published_time\" content=\"2026-03-23T11:35:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-23T11:35:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.houzeo.com\/blog\/wp-content\/uploads\/2024\/01\/How-do-real-estate-agents-get-paid.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"810\" \/>\n\t<meta property=\"og:image:height\" content=\"435\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Bhagyesh Behere\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bhagyesh Behere\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How Do Real Estate Agents Get Paid? (Updates 2024)","description":"How do real estate agents get paid? Real estate agents and brokers earn a commission, usually ranging from 3% to 6% of the selling price.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.houzeo.com\/blog\/how-do-real-estate-agents-get-paid\/","og_locale":"en_US","og_type":"article","og_title":"How Do Real Estate Agents Get Paid? (Updates 2024)","og_description":"How do real estate agents get paid? 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