How Much Does a Realtor make on a $100,000 sale?

The profession of a Real Estate Agent or a Realtor is appealing to many. It may be so as the realtors around us lead a luxurious and comfortable life. Whenever deciding upon a career, most of us take into consideration the important questions of “How much money will I be able to make?” However, to understand how real estate agents generate their income, it is important to know the kind of work they undertake.

Average income of a realtor on a $100,000 sale

The income per sale depends on the commission taken per project. For example,

• If you make a $100,000 sale that has a 6% commission rate, which would be $6,000.
• This $6,000 is split between the buyer’s broker and seller’s broker, according to an agreed upon amount (generally a 55% to 45% ratio).
• This means $2,700 goes to the buyer’s broker and $3,300 goes to the seller’s broker (your managing broker).
• Next, the $3,300 is split between you and your managing broker’s agreed upon amount; let’s say 50% and 50%.
• This leaves you with a commission of $1,650 for listing and selling a $100,000 home.

Salary Pay Out

A realtor’s job can be described in a very simple sentence; i.e., clients hire realtors to purchase or sell properties for them. The pay of the realtor however varies sale-to-sale. The yearly generated income of a realtor is commission based.

According to the Bureau of Labor Statistics’ (BLS) 2020 Occupational Employment Statistics data the average real estate agent annual wage in the United States is $62,060, while the average annual wage for real estate brokers is $81,450.

Realtor vs. Real Estate Agent vs. Real Estate Broker

• A Realtor is a real estate agent who is an active member of the National Association of Realtors (NAR). Founded in 1908, the NAR is the largest trade association in the United States. According to the NAR, about half of all real estate agents in the United States are certified Realtors.
• A Real Estate Professional with a valid license is someone who helps people buy and sell commercial as well as residential properties.
• A Broker is a professional who undertakes extensive education and passes a broker’s licensing exam. The qualification and certification of brokers may vary state to state. Nevertheless, the coursework covers in-depth legal issues, operating brokerages, investments, construction, and property management.

Average Income of a Realtor

One of the best ways to know the income of a Realtor is to know the amount of money he makes on an example sale. So, lets answer the question how much does a realtor make on a 100 000 sale. But before that lets also look at the average salary of Realtors in different states.

The following is the list of the Top five states in America where Realtors make the most money (average)

The following is the list of the Top five states in America where Realtors make the least money (average)