Any idea about “How much does a Real estate agent make?

how much does a real estate agent make

Wish to buy a new property? It is as easy as making maggie! All you need is a Real estate agent. A real estate agent makes it very easy to buy property. Nowadays, no one likes to travel for miles to look at the property.

Moreover, billionaires like Jeff Bezos Elon Musk are far more busy buying any property. Instead, they have real estate agents to do that job for them.

It is easier to look at properties at once. Real estate agents have what you are looking for. They show the best properties under the pre-set budget. Any ideas about “How much does a real state agent make?” Let’s discuss more below:

Who is a Real Estate agent and broker? How much does a real estate agent make?

how much does a real estate agent make

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A real estate agent works as a bridge between the property owner and the customer. In layman’s words, a real estate agent is the representer of real estate or property of the sellers or buyers.

Also, you may not know this, but there is a huge difference between a Real estate agent and a Broker.

We can define the real estate agent as the salesperson who works for some big firm or a broker. The main role of a real estate agent is to advise their clients who wish to sell or buy a property or even look for apartments for rent in salem or.Moreover, a realtor knows everything about the market and advises clients who are reluctant to deal.

On the other hand, a Broker is the licensed person who closes the deal with the clients. A broker hires a real estate agent who does the job of “agreeing” the client to sell or buy any particular estate. Also, a real estate agent is responsible for explaining all the pros and cons and terms and conditions to their clients. 

Furthermore, it is the Real estate agent who brings the customer. The broker does other jobs like closing the deal, negotiation, documentation, etc. Also, a broker has a license to carry out real estate transactions. A broker can work independently, open a firm or work with any firm.

Charles Schwab is the world’s biggest brokerage whose chairman is Charles R. Schwab. Moreover, the company has around $7.5 trillion assets under management. 

Now, do you want to know How much a real estate agent makes at Charles Schwab’s?

You won’t believe the figures. But, a real estate agent can earn upto $90,000 working at Charles Schwab’s.

Any idea about “How much does Real estate agent make?”

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The real estate agent is entirely a sales profile. Therefore, their salary varies depending on several factors. Moreover, it can get as high as $90,000 and as low as $10,000. A realtor’s salary is entirely dependent upon his/her performance. As they belong to a sales profile, they get pre-set percentage of their total sales. Yes, you guessed it right! How much a real estate agent makes depends on his/her commission. 

If we talk about the commission percentages, it varies from firm to firm. During the hiring process, a firm decides the percentage of the firm they give at the end of every month to their employee. 

Factors that depends on the real estate agent salary

How much does a real estate agent make depending on various factors? This section will help us explain all the factors regarding an agent’ salary:

  1. Every real estate agent starts their career in two ways. Either they join a big firm or start working under a licensed broker. Either way, every real estate agent gets a monthly salary. Moreover, this monthly salary is a fixed amount paid by the employer. Also, it has nothing to do with the performance. That means there will be no deduction in the salary even when the performance is low or high.
  2. As every firm gives a chance to their employees to earn some extra dollars, the Real estate does that too. The firm gives a special performance incentive to every employee (quarterly or every year, depending upon the company policy). This performance incentive has many benefits. First, it keeps the employee motivated and inspired. Also, it is beneficial for the firm too. This helps the firm to judge each employee’s performance. Moreover, the more the employee works for the incentive, the more they sell. That means this incentive plan is beneficial for both parties.
  3. Will you believe me if I say you can earn millions overnight in this real estate business? Yes, you can! The salary slabs, as well as commissions in this field, is quite competitive. Whatever property a real estate agent sells, he/she gets some commission over the sold property. The whole real estate business depends on commission. That is why I said you could make millions of dollars overnight in this profession. A real estate agent’s payment is not limited to its basic salary. The more they work, the more they can earn.

How does this commission work? Is there any hierarchy?

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I know you all have this question in your mind. How much does a real agent earn with commission? Did he get the commission directly or from his/her firm? Let us find out here!

No one talks about these things. The commission percentage is quite confidential in the real estate business. Also, the commission percentage varies from agent to agent or even profile to profile. Let me explain with an example:

Suppose a real estate agent sells a million-dollar property; his/her share of the commission depends upon the percentage pre-set by the firm. Under no circumstances can this percentage increase or decrease. Also, if the agent feels that he/she is not paid the expected amount, they can speak to their broker or senior. A realtor or an agent has every right to ask his/her broker to explain their percentage of share. Moreover, if the real estate agent is not satisfied with the answer of their broker, they can reach their seniors to discuss further.

Now, talk about the broker’s share. The circumstances are similar to that of the real estate agents. Similarly, they get their pre-set percentage of share every month or three months, depending on the company policy. 

However, the situation is not similar in the local firm. Suppose, if a broker has his/her firm with a single person working for them, then the percentage of his/her cut varies. In these types of small or local firms, the real estate agent can get half of the commission.

Can you explain the commission-sharing process?

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The commission sharing process is a very straightforward procedure.No matter how much the company makes. You will get your pre-decided share. If you have an optimistic approach, you will get your cut every month, even if the firm is in loss or profit. On the other hand, these big brokerage firms have their own rules and regulations. They have the right to decide the percentage of share of their employees. These trillion dollars firms usually pay a very low commission to their employees.

For example, suppose a firm sold a 200 million property. Out of which, their share is $20 million. Now, the firm needs to give every single employee their commission. Therefore, they will start from the top level and then go downwards in the food chain. That means each employee will get their commission who have played a role in selling the property to closing the deal. Now, suppose 10 employees took part in the selling to closure process. Each of these 10 employees will get their pre-set cut out of $20 million. 

The company keeps the remaining amount after clearing all the payments.

Generally, the commission of any firm or broker depends upon the market condition. If the property rates are high, the commission will be automatically higher. Overall, the real estate agent or broker’s cut ranges between 5-6%, depending on country laws. Now, when we talk about who pays the commission? Well, the buyer pays the commission or the seller?

Well, the answer to this question depends on the mutual understanding of both parties. Sometimes, the seller has to pay the commission. However, in most cases, both seller and buyer split the commission money and pay the agent or the firm.

How much does each real estate agent make out of a deal?

Each agent who is involved in the process of selling the property gets their cut. The exact amount is very hard to tell as the firm has the authority to decide that. Typically, the agent cut ranges between 2-5%.

Now, the employees involved in property selling are Real estate agent, brokers, and the firm. The broker takes care of the documentation and closes the deal. Finally, the firm to which these agents and brokers belong.


In the end, I hope you understand all about the real estate business. Also, this article tells about the commission of the brokerage firm at each level. I hope you find this article worth reading. Take care and be safe!

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