how much do real estate agentsmake

Discover the ins and outs of real estate agent commissions in the US, including the factors that influence their percentages and what you should expect when working with an agent.


When it comes to buying or selling a property, many people rely on the expertise and guidance of real estate agents. However, the question of how much these professionals earn in commissions often remains a mystery. In this article, we delve into the topic of "What percentage commission do real estate agents make" in the US. Let's explore the factors that influence their earnings and what you should consider when working with an agent.

  1. Understanding Real Estate Agent Commissions:

Real estate agent commissions are typically calculated as a percentage of the final sale price of a property. While there is no set industry standard, the most common commission rate in the US ranges between 5% and 6% of the sale price. This percentage is then split between the listing agent (representing the seller) and the buyer's agent.

  1. Factors Affecting Commission Percentages:

a. Property Type and Value:

  • High-value properties may command lower commission percentages.
  • Commercial properties often have negotiable commission rates.


Hey there, fellow blogger! So, you're curious about how much commission real estate agents make, huh? Well, buckle up and let's dive into the exciting world of percentages and property!

In the good ol' US of A, real estate agents typically earn a commission based on a percentage of the final sale price. Now, before we get into the nitty-gritty, remember that commission rates can vary. It's like finding a hidden gem of a blog topic – you never know what you might stumble upon!

Typically, real estate agents snag a percentage ranging from 5% to 6% of the total sale price. Now, you might be thinking, "Whoa, that's a lot!" Well, hang on to your keyboard, my friend, because there's a bit more to it.

Picture this: You, the fabulous blogger, have helped a real estate agent land a sweet deal through your captivating content. The property sells for $300,000, and the agent's commission is set at 5%. That means they'll bag a cool $15,000 for their hard work. Not bad, right?

But wait, there's more! Remember, real estate agents often work in teams or under a brokerage. So, that commission gets

What percentage do most realtors charge?

Nowadays, real estate commissions can be negotiated, and they typically run about 5 percent to 6 percent of a home's sale price. The exact terms of an agent's commission vary from sale to sale, and can depend on the region and which firm they work for.

How do real estate agents get paid in Tennessee?

Real Estate Commission in Tennessee Real estate agents work on commission. According to Clever Real Estate, Tennessee real estate agents, also known as affiliate brokers, collect a 5.6% commission from the sale of a home. That is slightly higher than the national average of 5.49%.

How much does average realtor make in Ohio?

What is the average salary for a real estate agent in Ohio? The average salary for a real estate agent in Ohio is $32,000 per year. Real estate agent salaries in Ohio can vary between $17,000 to $90,500 and depend on various factors, including skills, experience, employer, bonuses, tips, and more.

How much does the average realtor make in GA?

Real Estate Agent Salary in Georgia
Annual SalaryMonthly Pay
Top Earners$118,146$9,845
75th Percentile$94,500$7,875
25th Percentile$61,400$5,116

What is the 80 20 rule for realtors?

The rule, applicable in many financial, commercial, and social contexts, states that 80% of consequences come from 20% of causes. For example, many researchers have found that: 80% of real estate deals are closed by 20% of the real estate teams. 80% of the world's wealth was controlled by 20% of the population.

What does Warren Buffett not invest in?

Warren Buffett has been vocal that he feels gold lacks value because it lacks usefulness. A key principle of value investing, as Buffett practices it, says you should only invest in things that serve some practical purpose. Silver has myriad uses, and Buffett has invested nearly $1 billion in it.

Frequently Asked Questions

Does Warren Buffett invest in land?

Warren Buffett's Farm Buffett has shown interest in farmland for most of his life. As a teenager, he bought $10,000 of Nebraska farmland. Unlike his home, farmland seems to be an important financial investment. Land values have increased significantly over the last several decades.

What is Warren Buffett's number 1 rule?

Buffett is seen by some as the best stock-picker in history and his investment philosophies have influenced countless other investors. One of his most famous sayings is "Rule No. 1: Never lose money.

How did Berkshire Hathaway get into real estate?

Hear this out loudPauseIn a letter to shareholders in February, Buffett explained how his conglomerate, Berkshire Hathaway, got into the real estate business by default in 2000 when Berkshire bought the energy company MidAmerican, which owned HomeServices. He then slowly built up the company.

Who started Berkshire Hathaway real estate?

Hear this out loudPauseBerkshire Hathaway HomeServices has nearly 40 years of history in Ventura County. Founded by Bob Majorino in 1980, the company has grown over the years to include nearly 400 associates.

How long has Berkshire Hathaway been in real estate?

Berkshire Hathaway Energy's HomeServices of America (see complete list of companies) is a residential real estate brokerage firm based in Minneapolis, Minnesota, and founded in 1998.

What family owns Berkshire Hathaway?

Berkshire Hathaway is a massive holding company that's been run by famed value investor Warren Buffett since the 1960s. Berkshire Hathaway has a market capitalization of over $700 billion. In May 2023, its class A shares (BRK.


Who owns most of Berkshire Hathaway?
The one stock that he definitely owns, of course, is Berkshire Hathaway. Buffett is Berkshire's largest shareholder.
How many real estate companies does Berkshire Hathaway own?
Berkshire Hathaway HomeServices of America This is Berkshire Hathaway's real estate brokerage subsidiary, and is actually a collection of 35 different real estate companies across the U.S. The company operates in 25 states and employs over 22,000 sales associates.
Does Berkshire Hathaway do real estate?
Berkshire Hathaway HomeServices is a real estate brokerage franchise network designed for today's real estate market. From first time homebuyers to high-end residential markets to middle-market communities to commercial real estate, our franchisees are down to earth, nimble and local experts.
Does Bill Gates own Berkshire Hathaway?
The investor owns 1.14% of the outstanding Berkshire Hathaway stock. The first Berkshire Hathaway trade was made in Q2 2010. Since then Bill Gates bought shares fourteen more times and sold shares on 38 occasions. The stake costed the investor $3.18 Billion, netting the investor a gain of 162% so far.
Why does Warren Buffett not buy real estate?
He seeks a margin of safety to minimize downside. But real estate does not provide many such opportunities. As Buffett notes, real estate “tends to be more accurately priced most of the time.” There are not many chances to buy properties far below a rational estimate of fair value.
Why real estate is no longer a good investment?
Low Returns and High Expenses The rentals earned are also negligible. Also, in order to earn rent, a lot of time, money and effort, has to be put in. Also, many times, it is just difficult to rent out houses. Hence, there is an element of risk as well.

What percentage commission do real estate agents make

Does Warren Buffet recommend real estate? Warren Buffet prefers to invest in REITs instead of real property because they are a great source of passive income, reward-oriented, and more liquid than property ownership.
What percent commission do most real estate agents 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%.
What commission do agents get paid on? Commission agent receives a commission on the transaction between two or more persons. The transaction is not routed through him. For example – A person is working as an estate broker. He gets a commission of 1% on the sale price of the property.
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.
What real estate firm did Berkshire Hathaway buy? In 2006, the company acquired Atlanta based real estate brokerage Harry Norman, Realtors®. In 2012, the company acquired real estate brokerage firms from Prudential and Real Living and rebranded Prudential Real Estate to Berkshire Hathaway HomeServices.
Where is Berkshire Hathaway main office? Omaha, NEBerkshire Hathaway / Headquarters
  • How much does Bill Gates own of Berkshire Hathaway?
    • Bill Gates Berkshire Hathaway Inc. - Class B Bill Gates's position in Berkshire Hathaway is currently worth $8.34 Billion. That's 21.30% of their entire equity portfolio (2nd largest holding). The investor owns 1.14% of the outstanding Berkshire Hathaway stock. The first Berkshire Hathaway trade was made in Q2 2010.
  • What percentage commission do real estate agents get
    • Real Estate Commission. Most real estate agents make money through commissions that are based on a percentage of a property's selling price, (Commission can 
  • Does Warren Buffet own any real estate?
    • Warren Buffett Doesn't Buy Real Estate And You Probably Shouldn't Either. Warren Buffett's long-term investment strategy has proven to be successful through virtually all market conditions over the past several decades – recession, high inflation and deflation.
  • What home building company does Warren Buffett own?
    • D.R. Horton The Rich Dad Company co-founder Robert Kiyosaki discusses the best places to invest in a down market on 'Cavuto: Coast to Coast. ' Warren Buffett's Berkshire Hathaway now owns roughly 5.7 million shares of the largest homebuilder in the U.S., D.R. Horton, despite rising mortgage rates and other industry headwinds.
  • What REIT does Warren Buffett own?
    • STORE Capital Corp. For instance, Buffett's company Berkshire Hathaway Inc. (NYSE:BRK) used to own shares of STORE Capital Corp., a REIT specializing in single-tenant operational real estate (STORE).
  • Where does Warren Buffett own property?
    • Omaha In a 2009 interview with the BBC's Evan Davis, he expressed contentment with his Omaha residence, stating, "I couldn't imagine having a better house." The home is the only real estate in Buffett's personal portfolio.

Leave A Comment

Fields (*) Mark are Required