How Does A Real Estate Agent Get Paid

Market (economics)


Real estate agents provide their clients with assistance in either buying or selling property. Most agents are paid on a commission basis, and the amount they earn can vary greatly.

Commission System

The typical compensation system for real estate agents involves a commission based on the sales price. The commission is usually split between the listing agent and the buyer’s agent, with both agents getting a percentage of the total amount. The total commission for each transaction is typically about 6% of the sales price but will vary depending on local laws and the market.

Incentive Programs

Real estate agents may also be eligible for incentives based on the number of transactions they complete. This might include bonuses or additional commission rates if they meet certain criteria. Incentive programs can be a great way for agents to increase their earnings and provide them with motivation to do their best work.

Fee Structure

Real estate agents may also charge fees for certain services, such as preparing documents, researching potential properties, and providing guidance during the closing process. These fees can vary greatly and should be outlined in the agent’s contract.


Real estate agents typically earn a commission on each transaction they help to facilitate. The exact amount of the commission is based on the sales price and can vary from a few percentage points to more than 10%. Incentive programs are also offered by some companies for agents who complete a certain number of transactions. Agents may also charge fees for various services rendered.

Overall, real estate agents have the potential to earn a healthy income, as long as they are committing to provide excellent service.