How Much Does a Real Estate Agent Make on a $500,000 Sale?
On a $500,000 home sale with 6% total commission, agents typically see $30,000 split between listing and buyer sides. After brokerage splits (often 70/30), an individual agent earns around $10,500 before taxes and expenses.
On a $500,000 home sale, the total commission is often around 5-6% of the purchase price, split between the listing and buyer brokerages. Here's how the math typically breaks down.
The Quick Answer
At a Glance
Total Commission (6%): $30,000
Each Side (3%): $15,000 per brokerage
Agent Split (70/30): ~$10,500 to the individual agent
Net After Expenses: $8,000-$9,000 (varies by agent)
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: Buyer/Seller Split
The total commission is typically divided 50/50 between the listing brokerage and buyer's agent brokerage:
- Listing side: $15,000 (at 6%)
- Buyer side: $15,000 (at 6%)
Step 3: Brokerage Split
Most agents split their side with their brokerage. Common splits range from 50/50 (new agents) to 90/10 (top producers):
| 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
Before celebrating, agents pay:
- Self-employment tax: 15.3% (~$1,600 at $10,500)
- Income tax: Varies by bracket (15-35%)
- Marketing costs: MLS fees, signs, photos
- Transaction fees: Some brokerages charge per deal
Variables That Affect Earnings
Commission Rate Varies by Market
- 6% is traditional but declining
- 5% is common in competitive markets
- 4-4.5% happens with discount brokerages
Split Structure Matters
- Traditional brokerages: 50-70% to agent
- High-split brokerages: 80-100% to agent (higher fees)
- Team structures: Team leads take 20-40% before split
Who You Represent
- Listing agent: Earns listing side commission
- Buyer's agent: Earns buyer side commission
- Dual agency: Agent earns both sides (where legal)
Real Example Calculation
| Item | Amount |
|---|---|
| Sale price | $500,000 |
| Total commission (6%) | $30,000 |
| Listing side (3%) | $15,000 |
| Agent split (70/30) | $10,500 |
| Self-employment tax (15.3%) | -$1,607 |
| Estimated income tax (22%) | -$2,310 |
| Marketing/transaction fees | -$500 |
| Net take-home | $6,083 |
Increasing Your Per-Transaction Income
- Negotiate a better split — Prove your value with consistent production
- Focus on higher price points — Same effort, bigger checks
- Generate more referrals — Lower marketing costs per transaction
- Automate follow-up — More deals with the same hours
AgentSequence helps you close more deals by ensuring consistent follow-up with every lead. More transactions = higher annual income.
Ready to Automate Your Follow-Up?
Start your 14-day free trial. No credit card required.