If you're just getting started in real estate, one of the first questions you'll ask is: How do I actually get paid? You’ve probably heard that agents earn a percentage of a home’s sale price, but the reality behind that number can be a little more complex.
This guide breaks down how commission splits work, what new agents can expect to earn, and how to evaluate a brokerage’s compensation model with clarity and confidence.
What Is a Real Estate Commission Split?
Real estate agents typically earn money through commissions, usually 5–6% of the home’s sale price, which is paid at closing. But that commission is shared by more than one party.
Here’s how a standard $500,000 home sale with a 6% commission ($30,000 total) breaks down:
Buyer’s side gets: $15,000
Listing side gets: $15,000
You (the agent) then receive a portion of your brokerage’s share.
Understanding where the broker's portion fits in can help clarify the relationship between broker and agent earnings.
What Does a Commission Split Mean for Agents?
A commission split refers to the portion of your brokerage’s cut that you actually receive. This varies by your experience level, brokerage model, and sometimes your performance.
Common Splits:
New agents: 50%–60%
Mid-level agents: 65%–75%
Top producers: 80%–90%+
So, let’s say you’re a new agent on a 60/40 split, working the buyer’s side of that $500,000 deal:
Your brokerage receives: $15,000
Your 60% share: $9,000
After typical fees: ~$6,700 net
Multiply that by several deals per year, and you’ve got a realistic picture of first-year income.
Real Numbers: What New Agents Actually Earn
Starting out, most agents close 2–6 transactions in their first year. Based on average sale prices and beginner splits, here’s a ballpark:
Average take-home per deal (after fees): ~$6,700
6 deals/year = $40,200
After taxes/business expenses: closer to $25,000–$30,000
That’s a solid starting point—and it only grows from there. With time and consistency, you’ll earn higher splits and close more deals.
Common Commission Structures to Know
While traditional percentage splits are the most familiar, there are a few models you might encounter:
Traditional Split
You split each commission with your brokerage. The more you sell, the better your split usually becomes.
Many national brands follow this model, including brokerages like Keller Williams, which uses a cap system that limits what the brokerage can earn from an agent annually. Here’s a breakdown of their structure.
Flat-Fee Model
You keep nearly all your commission and pay a set fee per transaction—often $500 to $1,500. These are popular with experienced, high-volume agents.
Flat-fee models are also part of a broader shift in the industry toward more flexible commission options, as seen in recent trends tracked by US Realty Training.
Graduated or Tiered Splits
You earn higher percentages as you reach production milestones (e.g., 60% → 65% → 70%+ as your annual commissions increase).
This model rewards consistent volume, especially in competitive markets.
Team-Based Splits
If you’re part of a team, the commission may be split with both the brokerage and team leader. While the split may be smaller, you may also receive more leads and support—especially in co-listing situations. These types of arrangements are common, and team-based commission breakdowns can vary widely depending on structure and support.
What to Look For as a New Agent
Starting on a lower split isn’t a bad thing—especially if the brokerage offers strong support. Look beyond the percentage and ask:
What’s included? (Training, mentorship, leads, marketing)
When does my split improve? (Timeline or production goals)
What fees come out of my commission? (Ask for itemized examples)
In some cases, agents may also work as co-listing partners—a model that can ease the learning curve while still earning commissions. Here's how co-listing works and why it can benefit new agents.
Sometimes, a 60% split with tools and guidance leads to a faster ramp-up and higher total income than a 90% split with no support.
Choosing the Right Split for Your Career
Yes, your split affects your paycheck. But don’t forget to weigh the big picture:
Can you grow here?
Will you learn the skills to build a pipeline?
Is there a path to higher earnings over time?
That’s what truly builds a sustainable career in real estate.
Commission splits can feel complicated—but once you understand the basics, you’re in a better position to choose a brokerage that fits your goals.
Start by asking the right questions. Know what you’re worth. And remember that your success isn’t just about the commission percentage—it’s about the support and strategy behind it.
Updated 7/7/25