How Much Does The Real Estate Agent Make Per House?

The most successful agents put in 60 hours or week or more showing homes, meeting with clients and looking for new business. But for those agents who make that commitment, the rewards can be priceless.

Real Estate Commission:

Most agents selling homes or leasing apartments work on commission. Basically, if you don't sell you don't get paid. A not-uncommon commission is 6%. If you live in a pricey real estate market like Boston or San Francisco, maybe you are salivating at the idea of earning $60,000 with the sale of one house. It doesn't work that way, though.

If another agent is involved you'll split that commission, so that's 3%, or $30,000 each. However, before you see a dime, the $30,000 will first go to the brokerage firm you work for. How much you take home of that $30,000 - and remember, this is all pretax income - will depend on your contract with the brokerage firm. This is called the "split," notes Crowley, the Boston broker, and while it often can be 50/50, that's not guaranteed.

Being a Realtor

Now you are down to $15,000. It doesn't end there, though. Many firms also levy a "desk fee" or "marketing fee" on agents that could bring your fee down to $14,100. But that doesn't probably cover your complete marketing costs, which you are on your own for, and could easily chew up another $2,000 or $3,000. Add in the cost of your phone, car (gas and insurance), continuing education to maintain your real estate license and professional errors and omissions' insurance and what looked like a $60,000 commission is now down to $10,000.
Learn More about How Much Does The Real Estate Agent Make Per House?

Source: thestreet