This expert review delves into the intricate details of how real estate salespeople are paid in the US, shedding light on various compensation methods, their pros and cons, and the factors that influence earnings.


Real estate salespeople play a crucial role in the buying and selling process of properties. As professionals who facilitate transactions, it is essential to understand how these individuals are compensated for their services. In this comprehensive review, we will explore the various methods of payment for real estate salespeople in the US, aiming to provide an expert, informative, and easily understandable analysis.

Commission-Based Compensation

The most prevalent form of compensation for real estate salespeople in the US is commission-based. Under this structure, agents receive a percentage of the final sales price as their payment. The commission is typically paid by the seller and shared between the seller's agent and the buyer's agent. The percentage varies but is commonly around 5-6% of the sale price.

Pros and Cons of Commission-Based Compensation

Commission-based compensation aligns the interests of the salesperson with those of the client, as their income is directly tied to the sale's success. This motivates agents to strive for

How do real estate agents get paid in SC?

How Are Real Estate Agents Paid in South Carolina? Typically, real estate agents don't get a standard salary or hourly rate. Instead, for each transaction they work they earn a commission. The commission is a percentage of the sale price of the home for which they either find a buyer or help sell.

What percentage of sales do most realtors make?

While realtor commission fees vary regionally, the average seller can expect to pay between 4.45% to 6.34% of the home's final sale price, according to our research. The U.S. average is currently 5.37%. The listing agent usually receives 2.72% of the proceeds.

How do real estate agents get paid in New York?

Real estate agents work solely on commissions. Those commissions are typically split between the buyer's agent and the seller's agent. The broker overseeing the transactions also gets a split of the commissions. New York real estate agents can increase their income potential by earning their NY broker license.

Why do realtors make so much?

Real estate agents make a lot of money on commission because the cost of selling a home is high, they provide a valuable service, the real estate market is competitive, and they have to split their commissions with their brokers. The average real estate commission rate nationwide is 5.8% of the home sale price.

What is the average salary for a SC Realtor?

The average salary for a real estate agent in South Carolina is $34,000 per year. Real estate agent salaries in South Carolina can vary between $16,500 to $177,500 and depend on various factors, including skills, experience, employer, bonuses, tips, and more.

How much does an average realtor make in Florida?

Real Estate Agent Salary in Florida

Annual Salary Monthly Pay
Top Earners $101,463 $8,455
75th Percentile $81,200 $6,766
Average $67,204 $5,600
25th Percentile $52,800 $4,400

How are real estate salespeople paid?

Real estate agents are paid a commission based on the property's sale price; the total commission is split among the agents and the brokers involved.

Frequently Asked Questions

How does an agent get paid?

Most real estate agents make money through commissions. A single commission is usually split four ways—between the agent and the broker for the seller and the agent and the broker for the buyer. The commission split depends on the agreements the agents have with their sponsoring brokers.

Do real estate agents in America get a salary?

Hear this out loudPauseMany real estate agents receive a set salary with an additional commission. Some of them can remain steady and successful in their career by solely gaining a commission. This can vary depending on the company a real estate agent will work for.

What is the top salary of a realtor?

Real Estate Agent Salary in California

Annual Salary Hourly Wage
Top Earners $129,667 $62
75th Percentile $103,700 $50
Average $90,804 $44
25th Percentile $67,400 $32


How much of the commission does the agent get selling sunset?
According to former O-Group agent Maya Vander, the real estate agents take end up taking home about 1.75% of the commission on sale. 'Typically the commission on a purchase is 5%,' she said. 'The 5% is split into half for the person who represents the seller and the person who brings the buyer, so you end up with 2.5%.
How much do top 10% realtors make?
According to their research, as of the fall of 2022, the average annual salary for California agents was $91,363. But that's not the whole story. Nationwide, real estate agent salaries range from an average of $28,270 for the bottom 10th percentile up to $102,170 in the top 10th percentile.

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