Memphis Business Daily

How much commission does a real estate salesperson make?

In other words, does the broker pay his salesperson the whole commission of the sale, or a percentage of the commission?

Public Comments

1. It's very negotiable. Generally 3% to 6%.
2. My buddy is a realtor and it all depends on the contract itself. Standard fee is 6% however, my buddy charges 4% and gets more deals because that 2% difference can mean a savings of thousands of dollars for the seller/buyer, (especially in the California real estate maket).
3. The listing fee, let's use 6% for the example, is split between the buyer's agent and the listing agent. So, each side gets roughly 3%. After that each agent must split their 3% with their broker. Most agents are on a 50/50 split in the beginning so each agent would get roughly 1.5%. Some agents are on 100% which means they get all of their 3% but they pay "rent" and other fees to the broker each month.