How Much Does a Real Estate Agent Make on a $500,000 Sale?
At a 6% total commission, a $500,000 sale generates $30,000, usually split between the listing and buyer sides. After a typical 70/30 brokerage split on one side, the agent earns about $10,500 before taxes and expenses.
On a $500,000 home sale, the total commission is often somewhere around 5-6% of the price, split between the listing and buyer brokerages. Commission rates and splits vary a lot by market and brokerage, so treat these numbers as an example, not a promise.
The Quick Answer
At 6% total, the commission is $30,000. Each side gets about $15,000. If your brokerage keeps 30% of your side, you take home about $10,500 before taxes and expenses.
Breaking Down the Commission
Step 1: Total Commission
| Sale Price | Commission Rate | Total Commission |
|---|---|---|
| $500,000 | 6% | $30,000 |
| $500,000 | 5% | $25,000 |
Step 2: Listing and Buyer Sides
The total is often divided between the listing brokerage and the buyer's brokerage. At 6%, that's roughly:
- Listing side: $15,000
- Buyer side: $15,000
Step 3: Brokerage Split
Most agents split their side with their brokerage. The split depends on the brokerage and on your production:
| Agent Split | Brokerage Share | Agent Take-Home |
|---|---|---|
| 50/50 | $7,500 | $7,500 |
| 70/30 | $4,500 | $10,500 |
| 80/20 | $3,000 | $12,000 |
| 90/10 | $1,500 | $13,500 |
Step 4: Expenses and Taxes
Before you celebrate, remember agents are typically independent contractors and pay for:
- Self-employment tax, which is 15.3% on net earnings up to the Social Security wage cap
- Income tax, which depends on your bracket
- Marketing and business costs: MLS fees, signs, photos
- Transaction fees: some brokerages charge per deal
What Changes the Number
Commission Rate
Rates are negotiable and vary by market. Some deals are at the traditional 6%, others lower, especially with discount brokerages.
Split Structure
- Traditional brokerages usually keep a larger share
- High-split brokerages let you keep more but often charge fees
- Teams typically take a share before the brokerage split
Who You Represent
- Listing agent: earns the listing side
- Buyer's agent: earns the buyer side
- Dual agency: one agent earns both sides, where it's legal
Example Calculation
This example uses a 70/30 split, 15.3% self-employment tax and an assumed 22% income tax rate. Your numbers will differ.
| Item | Amount |
|---|---|
| Sale price | $500,000 |
| Total commission (6%) | $30,000 |
| Listing side (3%) | $15,000 |
| After 70/30 split | $10,500 |
| Self-employment tax (15.3%) | -$1,607 |
| Estimated income tax (22%) | -$2,310 |
| Marketing and transaction fees | -$500 |
| Estimated take-home | $6,083 |
Raising Your Per-Deal Income
- Negotiate a better split. Consistent production gives you something to negotiate with.
- Work higher price points. Similar effort, bigger checks.
- Earn more referrals. They cost less to win than cold leads.
- Follow up with everyone. Many agents lose deals simply because they stopped following up.
Keystone is follow-up software for real estate agents. It writes the sequences, drafts each day's messages across email, text, call prompts, letters and handwritten cards, and pauses a sequence when someone replies. That keeps past clients and slow leads warm without you tracking them by hand.
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