What is the Commission for Real Estate Agents in Pennsylvania?

Learn how real estate commission works for agents in Pennsylvania and how you can start your new career path online!
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Looking to start a real estate career in Pennsylvania? One of the first things you probably want to know is how much commission you can make. While there's no magic number that applies to all situations, there are some industry averages that can give you a ballpark idea. Read on to learn all you should know, plus how to get started.

How Much Commission Do Pennsylvania Real Estate Agents Make?

The amount of commission you can earn as a real estate agent in Pennsylvania varies greatly depending on factors like your level of experience, the deal you arrange with your broker, and the types of properties you're selling.

However, a survey of Pennsylvania real estate agents found that the average commission rate in the state is 5.26% With the average home price sitting at $221,251, according to Zillow, the average total real estate commission comes to about $11,600. But, keep in mind, you don't get that full amount as the buyer's agent because it's split up amongst multiple parties.

How Do Real Estate Commission Splits Work in Pennsylvania?

When a homeowner wants to sell their home in Pennsylvania, they will typically reach out to a listing agent. In the process of preparing the home for sale, the seller and listing agent will agree on a total commission amount. This amount will be added to the listing agreement.

You, as the real estate agent from a brokerage, can then bring the buyer to the listing agent. When that happens, the brokerage and listing agent will negotiate a commission split. When the house sells, your broker will receive payment according to that agreement. Then, your broker will pay you an amount based on the agreement you have made.

In summary, the total commission split is often split four ways. A percentage goes to the listing agent, the listing agent's broker, the buying agent, and the buying agent's broker. The amount each party gets depends on the agreements made in the process.

Example of How Real Estate Commission Works in Pennsylvania

Let's look at an example. Say that you sell a home in Pennsylvania for $200,000 and it has a 5% commission rate totaling $10,000. If the listing agent and your broker agreed on a 50/50 split, each party would get $5,000. If you have an agreement with your broker to get 60% while they get 40%, you would get $3,000 and they would get $2,000. If the listing broker and listing agent agreed to a 50/50 split, each party would get $2,500.

In summary:

  • Sale price: $200,000
  • Commission rate: 5%, $10,000
  • Listing agent: $2,500
  • Listing agent's broker: $2,500
  • Buying agent: $3,000
  • Buying agent's broker: $2,000

This is an example of the traditional commission model. However, you may find some exceptions. For example, a broker may offer you a flat rate commission for every house you sell. Additionally, some companies, like Redfin, are undercutting these rates to attract buyers and sellers. They offer a 1.5% fee for listing a home, where it's usually double that to pay the listing agent and the broker. Being so, be sure to read the fine print when choosing a broker and going into a new sale.

Get your Real Estate License in Pennsylvania

Now is a great time to get your real estate license in Pennsylvania. According to Indeed, agents are earning an average of about $70,000 per year. And it doesn't take long to get started. After ensuring you're eligible, you can take the 75-hours of required education online from a state-approved provider like Aceable Agent. Once completed, the final exam is proctored online so you can take it from home.

Ready to get started? Enroll today!