Estate Agents Tip: How Much Money Do Real Estate Agents Make Anyway?

Don’t believe the hype! Go into this business with your eyes wide opening and with a real plan of action or you’re going to have me whispering in your ear “I told you so”.

Yup, too many people think those great big commissions they see on TV are common or that all the commission being paid goes completely to one agent. You can work smart, lead generate and make lots of money. Just make sure you understand what your take home pay really is before you begin.

Here are the 2014 figures for REALTORS,

Give me a call so I can help get you started in real estate as a real business: 973 433 5636, [email protected]


Here’s a tale of the money.

Now, in the video example, of course I meant to say if the homeowner has calculated a $20,000 commission, then split that in half for sake of this example. Each side (the agent representing the buyer and the agent representing the seller) would earn $10,000 (not the $5,000 I stated.)

After this, the $10,000 must be split between agent and office depending on their agreement. For the sake of this example, let’s say they have a 40/60 split where the agent gets 60% and the office gets 40%. This gives the agent $6,000.

From this $6,000, subtract expenses like all those federal and state taxes, gas, marketing expenses, office and other work expenses, and time. This gives you the net amount of money the agent has earned. If the deal goes through the agent gets this net.

If though, after all the leg work, effort, time and money spent, the buyer or seller decides not to complete the deal, the agent walks away empty-handed, except for the bills.


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Beverly Meaux, co-owner Bev & Bob Homes, LLC
at Keller Williams Suburban Realty
Office: 973-251-0100
[email protected]

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