Understanding Commission Charges of Real Estate Agents in 2025

In the digital age, one might imagine it possible for a property to be bought and sold without any agents; while technically true, it might be against the interests of one’s finances. Real estate agents do provide a lot of value when it comes to pricing, marketing, negotiating, and even dealing with monster paperwork down to the hundreds of pages. Still, the key is to understand the real estate agent fees and real estate commission structures before approaching any agent.

Let us delve deeper into these commission workings, see how they have changed, and what you must know about agent earnings, answering key questions such as “How much do real estate agents make per sale?” and “How much does a realtor make on a $500,000 sale?”

What Are Real Estate Agent Fees?

The term real estate agent fees refers to amounts paid to agents to oversee the transaction of a property. Usually, these fees are paid in the form of real estate commission: a percentage upon the final sale price of the house. Real estate practitioners generally are not paid upfront, as their fees will be deducted from the gross amount after the transaction has been completed.

The usual way was that the real estate agent commission was shared between the agent that was listing the property for sale and the agent representing the buyer. The common 6% commission had equal division with 3% going to each side. But up until 2024, it is worth mentioning that changes in industry regulations have now created much room to negotiate.

Sellers and buyers are free to decide who pays what commission nowadays. With such arrangements in place, you can potentially save a lot. However, this means that you must look through your contract and clearly discuss payment responsibilities.

Real Estate Commission Breakdown

Real estate commissions do change from place to place, but under normal circumstances, the average rate usually hovers about 5.32% in 2024. This total commission is usually split evenly between the buyer’s and seller’s agents. That means seller’s agent generally receive anywhere from 2.5 to 2.7% of the selling price.

The commission breakdown, based on home price, will allow us to get real breakdown on home prices:

Home Sale Price	Seller’s Agent (2.5%)	Buyer’s Agent (2.5%)	Total Commission (5%)
$250,000	$6,250	$6,250	$12,500
$500,000	$12,500	$12,500	$25,000
$750,000	$18,750	$18,750	$37,500
$1,000,000	$25,000	$25,000	$50,000

So, if you’re wondering “how much does a realtor make on a $500 000 sale?” — the answer is usually around $12,500, assuming a 2.5% commission. The remaining 2.5% would go to the other party’s agent. Keep in mind, a portion of that may be further split with the agent’s brokerage.

How Much Do Real Estate Agents Make Per Sale?

There is no standard answer to the question “How much do real estate agents make per sale?” because they depend on many factors:

• Sale price of the home
• Commission percentage agreed upon
• If the agent splits the commission with a brokerage
• Any other marketing and administrative costs borne by the agent

Let’s say an agent is getting a 2.5% commission on a $400,000 property. It equals $10,000. If that agent then has to split the commission with their brokerage 80/20, that $10,000 essentially becomes $8,000 to the agent and $2,000 to the brokerage.

Higher-end agents selling luxury homes might be charging a smaller percentage of commission but are still pulling in greater amounts because of the high values of the properties themselves.

Dual Agency and Commission Implications

In some cases, buyers and sellers have one real estate agent representing them. This is the dual agency situation, and it is allowed in many states. The agent could earn the full commission in a dual agency but has to act fairly towards and disclose the arrangement to both parties.

In this situation, the real estate agent fees could be less, as both ends are being handled by one professional. This might allow for more flexibility when negotiating real estate commissions.

Commissions – What Are You Paying For?

One question that often arises is the nature of real estate agent commissions and why clients have to pay them. The answer, in short, is: quite a lot. Here is an approximate list of the activities covered by real estate agent commissions:

• Researching the market and setting your pricing strategy
• Listing your property on the MLS (Multiple Listing Service)
• Providing advice on home staging and getting photos taken
• Holding open houses
• Arranging showings and ensuring communication with interested buyers
• Negotiating the offer and any contingencies
• Preparing all the paperwork and submitting it
• Working with title companies, appraisers, and inspectors

Put plainly, as far as commissions go, the sellers pay their agents to handle the entire transaction.

Can You Avoid Realtor Fees?

Yeah, anything’s possible-but often not a good idea. A seller can FSBO (For Sale By Owner), and buyers can also do it, meaning they will also have to take care of marketing for their home, all the legal paperwork, negotiations, and logistics. It works when some people go for it by themselves and figure things out, but many try to sell by owner only to hire an agent eventually when they realize there is much more to it than meets the eye.

There are discount brokers and flat-fee agents, as well. They usually charge less commission than an ordinary real estate agent but maybe provide less service and support or help.

Final Thoughts

Commissions paid to real estate agents have changed with the times—and so has the option to haggle over them. If you are to either buy or sell, knowing those costs helps you plan better and make smarter decisions.

The temptation will always be there to try to save on commissions, but the advantage is that these professionals provide negotiation skills and market knowledge that are worth every penny.

So, if you’re in the market to buy or sell and want to have an expert on your side without facing any surprises, consider working with Amstar Dreams—a household name in real estate.