Real Estate Agent Commission: How Your Agent Gets Paid

Sellers typically pay the real estate agent commission, which has traditionally been 5% to 6% of the home sale price.
Updated
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Written by Barbara Marquand
Senior Writer
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Edited by Johanna Arnone
Assistant Assigning Editor
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Editor's Note: In April 2024, a judge granted preliminary approval to a settlement in a class-action lawsuit over real estate agents' commissions. See how that will affect home buyers and home sellers.

Real estate agents make money from commissions on home sales. Understanding how your agent is paid is an important part of the home buying and selling process.

Average real estate agent commission

Typical real estate agent commissions have historically been 5% to 6% of the home sale price. That's $17,500 to $21,000 on a $350,000 home.

Home Sale Price

5% Commission

6% Commission

$250,000

$12,500

$15,000

$350,000

$17,500

$21,000

$450,000

$22,500

$27,000

$550,000

$27,500

$33,000

$650,000

$32,500

$39,000

$750,000

$37,500

$45,000

$850,000

$42,500

$51,000

$950,000

$47,500

$57,000

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Check Rate

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4.5

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