BiggerPockets

My mother, who is a real estate agent, made 2.1 million during 2006 which was a good year. She was definitely a top realtor in the area and probably number one.

I would say between 5 - 9 % is the average for each house.

6% seems customary. That gets split between buyers agent and sellers agent then each agent gives their broker some split.

Wow. thanks for all the input. I had no idea I would get so many people participating in this discussion.

You have all been a huge help! Thanks again!!

Customary commission in my area is 6%, 3 to the listing agent and 3 to the selling agent. Agents split commission with the broker responsible for them. That can be zero with a big selling/listing agent with actual flat fees paid, like 20K or what ever to 50% for beginning agents. Commonly in my area the agent split is 20/25% to the broker.

As pointed out, you'll have other expenses, Realtor dues, continuing education and your own business expenses...cards, flyers, adertising expenses, gas, auto, and office expenses, copiers, coffee fund and little things that they can dream up...etc.

Many net about 65 to 70% of the commission, lucky to hit 50% with all expenses, not counting advertsing, which is a variable cost with a listing. SOme brokers provide ads, some make you pay something, some have you pay it all.

In your area, look at the median home price as a basis, assume 6% and look at half of that as income, IMO. You need to sell a million to make a living, IMO.

I'm an agent and very surprised that agents are still getting 6% to split. In Chicago the market has pushed Realtors down to 5%. We offer huge bonuses to Realtors to get them into our homes. 5K bonuses on houses worth anywhere from 150-100k. This really gets the Realtors to show the property when there looking at a 7%+ commission just on there side. Obviously were flippers and Realtors so we don't pay a selling commission which helps us offer these huge rips. But buying agents are a huge resource that you can't get cheap on.