How Much Commission Do Real Estate Agents Actually Make?

A $7,000 commission check on a $260,000 sale looks like a lot of money for a few showings and some paperwork. Most of it never reaches the agent, and most agents close far fewer deals than people assume. Here is what the money trail actually looks like, with the numbers from the industry’s own surveys and from the federal government.

The median agent earns less than you think

The National Association of REALTORS® surveys its members every year. In its 2026 Member Profile, “the median gross income earned from real estate activities rose modestly to $59,200 in 2025 from $58,100 in 2024.” (NAR) That is gross: before taxes and before business expenses, which had a median of $9,530 in 2025, “up from $8,010, with vehicle costs the largest category at $1,580.” (HousingWire, reporting NAR data)

The federal numbers are similar. The Bureau of Labor Statistics puts the May 2025 median wage at $52,830 for real estate sales agents and $73,220 for brokers. (BLS Occupational Outlook Handbook)

The spread by experience is the most important line in that table. NAR reports that “sixty-two percent of members who have two years or less of experience made less than $10,000 in 2025 compared to 45 percent of members with more than 16 years of experience who made more than $100,000.” (NAR 2026 Member Profile) Newer agents closed a median of two transaction sides with $330,000 in total volume for the year. (HousingWire)

Following one commission check

Take a $262,333 home, roughly Mississippi’s median sale price (Zillow), with a 2.7% buyer-side commission, the August 2026 national average. (Clever)

Split and fee ranges: GRW Estate; Speicher Group; tools.realestate

That is for a deal that closes. Agents are paid nothing for buyers who look for six months and then renew a lease, or for listings that expire. A consumer advocate who has spent years criticizing commission levels still conceded that “a buyer agent selling a home with a 2.5% commission may earn, before expenses, less than 1%.” (Consumer Policy Center, Stephen Brobeck)

Where the rest goes

The brokerage. Every commission is paid to the broker, never directly to a salesperson; that is how the license works. “Traditional brokerages take 30 to 50 percent,” while capped models take a share “until the agent hits an annual cap of $12,000 to $36,000.” (Jtek) One analysis of 328,000 closed transactions at 634 brokerages found that split-model brokerages kept about 15% of gross commission on average, once high-producing agents on favorable splits are included. (Houwzer, citing Paperless Pipeline data)

The franchise. Agents at national brands typically pay “a 4% to 8% royalty fee” off the top in addition to the brokerage split. (Speicher Group)

Referral and lead fees. Online portals and referral networks commonly take 25% to 35% of the agent’s side when they supply the client. That cost is invisible to the consumer but comes straight out of the agent’s share.

Overhead. MLS dues, association dues, lockbox fees, errors-and-omissions insurance, signage, photography, continuing education, mileage. NAR’s median of $9,530 a year in expenses is a floor for a working agent, not a ceiling. (HousingWire/NAR)

Why the public number is so misleading

Commission income is lumpy, uncapped at the top and uncapped at the bottom. NAR’s typical member has 13 years of experience, and median income tracks tenure closely: “$38,800” at three to five years, “$71,400” at six to fifteen, and “$88,500” at sixteen or more. (New Purveyors, citing NAR 2026 Member Profile) A small number of agents earn well into six figures; a large number earn less than a part-time retail job. Both are counted in the averages you see online.

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