How much does a Realtor make on a $300,000 house?

Quick answer: what a Realtor typically earns on a $300,000 house and how can i get started in real estate

On a $300,000 sale, common seller-paid total commission rates in the U.S. are roughly 5% to 6%, which produces a gross commission of about $15,000 at 5% and $18,000 at 6%, before broker splits, fees, or taxes are applied, so consider these figures as a starting point for further math Redfin guide to realtor commissions. See ListWithClever’s overview for another perspective.

That $15,000 to $18,000 range is a gross commission figure that assumes the seller pays the total commission and that the parties accept a commission near common market norms; it is not the agent’s take-home pay, because broker splits and other charges come next Zillow commission overview.

Primary variables that change the final agent pay include the negotiated total commission rate, how that total is split between listing and buyer agents, the broker's split or fee model, any transaction or desk fees, referral fees, and the agent's tax situation. Each of these reduces gross commission differently, so list your assumptions before computing net.

How commissions are calculated and what beginners should know about how can i get started in real estate

Most listings use a seller-paid total commission that the seller agrees to at listing, and local custom often determines how that total is divided between listing and buyer agents; this seller-paid model is common in U.S. residential sales and is the basic billing approach new agents should understand NAR quick real estate statistics. For a general explanation of fees and how they are presented to consumers see Bankrate’s fees overview.

Mechanically, the sale price multiplied by the agreed commission percentage equals the gross commission. For a $300,000 sale, multiply 300,000 by the commission percentage to get the gross commission amount, then follow the money flow to broker, co‑operating agent, and any other payees Zillow commission overview.

Local custom matters: in some markets the listing agent and the buyer’s agent each receive roughly half of the total commission, while in others the split varies depending on buyer‑broker agreements and MLS offers. This buyer vs seller side division is separate from the broker-to-agent split, which affects how much the agent receives from the portion allocated to them.

Common compensation models and broker splits new agents will encounter

New agents typically see a few common broker compensation models. One is a straight percentage split, where the commission paid into the brokerage is shared with the agent in a fixed ratio. Industry reporting shows split ranges often fall between about 50/50 and 70/30, though arrangements vary by office and region Inman on commission splits. See AceableAgent’s guide for an additional explanation of typical split structures.

Ask a prospective broker whether splits are flat percentage splits, capped splits that change after you reach a threshold, or fee-for-service models that charge per-transaction fees in exchange for a higher agent share. Each model changes your net from the same gross commission differently, so request a clear example using a realistic sale price.

As an exercise, if your broker pays a 60/40 split to the agent, the agent’s share from a gross commission portion would be 60 percent of whatever the agent-side portion of the total commission is. Confirm whether the split is calculated before or after transaction fees, and whether any desk, franchise, or brokerage fees are withheld before split calculations.

When comparing offers, ask for written examples showing a $300,000 or local median-sale example that lists gross commission, broker share, agent share, and all standard fees. Ask how long typical new agents at the office take to reach a favorable split or a cap event.

Transaction fees, closing costs, and taxes that reduce an agent’s take-home

On top of broker splits, transaction fees, franchise fees, desk fees, and seller-paid closing charges commonly reduce an agent’s net by several hundred to a few thousand dollars depending on broker policy and local practice; check the brokerage fee list carefully so you know what to expect Zillow commission overview.

Most U.S. real estate agents work as independent contractors and therefore owe self-employment tax in addition to income tax; for questions about tax treatment and which taxes apply to your situation, consult official IRS guidance IRS self-employed individuals tax center.

Scenario math: sample take-home calculations for a $300,000 sale

Below are three labeled scenarios that use explicit assumptions so you can adapt them. All scenarios start with the common gross commission range: $15,000 at 5% and $18,000 at 6% as the baseline before splits or fees Redfin guide to realtor commissions.

Scenario A – Conservative split, low fees, new agent example. Assumptions: 5% total commission, agent receives 60 percent of the agent-side portion via a 60/40 broker split, transaction fees $500, estimated combined tax and self-employment impact assumed for this example 30 percent applied to agent net before personal deductions. Steps: gross commission = 300,000 * 0.05 = 15,000. If buyer and seller sides split evenly, agent-side portion = 15,000 * 0.5 = 7,500. Agent share after broker split = 7,500 * 0.60 = 4,500. Subtract transaction fees = 4,500 – 500 = 4,000. Subtract estimated taxes = 4,000 * 0.30 = 1,200, so net take-home ≈ 2,800. These are example numbers to show the calculation flow, not tax advice.

Scenario B – Higher commission, standard split, higher fees. Assumptions: 6% total commission, 50/50 split to agent, transaction and desk fees combined $1,500, estimated tax impact 35 percent. Steps: gross commission = 300,000 * 0.06 = 18,000. Agent-side portion = 18,000 * 0.5 = 9,000. Agent share after broker split = 9,000 * 0.50 = 4,500. After fees = 4,500 – 1,500 = 3,000. After estimated taxes = 3,000 * 0.35 = 1,050, so net take-home ≈ 1,950. This illustrates how a higher gross commission can still yield modest net pay once splits, fees, and taxes are counted.

Scenario C – Fee-for-service model, higher agent share, but higher fixed fees. Assumptions: 5% total commission, brokerage uses fee-for-service so agent keeps 90 percent of agent-side portion but pays a $3,000 flat fee per transaction, estimated tax impact 28 percent. Steps: gross commission = 15,000. Agent-side portion = 7,500. Agent share before fees = 7,500 * 0.90 = 6,750. After flat fee = 6,750 – 3,000 = 3,750. After estimated taxes = 3,750 * 0.28 = 1,050, so net take-home ≈ 2,700. The fee-for-service model can improve percentage share but will not always increase net when fixed fees are high.

Sensitivity note: changing one variable materially alters net pay. For example, shifting a split from 60/40 to 50/50 reduces agent share by roughly 16.7 percent on the agent-side portion, and raising transaction fees by a thousand dollars lowers the final net by the same amount before taxes. Run the calculator above with your numbers to see practical results.

Decision factors: what to consider if you are asking how can i get started in real estate

Be realistic about upfront and ongoing costs. Common startup costs include licensing and exam fees, state or association dues, and initial marketing and branding. Ongoing costs include MLS dues, continuing education, insurance, and lead generation expenses; these all reduce early net earnings and affect how quickly you cover your fixed costs BLS real estate agents overview. Also consider additional income options like real estate side hustles while you build transactions.

When evaluating broker offers, ask these questions: what exact split will apply to your transactions, are there caps or thresholds, what are transaction or desk fees, is there a marketing or lead fee, what mentorship and training are available, and what typical new-agent timelines for split improvements are. Ask for written examples and sample P&L scenarios from the broker. For career-path context, see related posts on best-paying jobs in real estate investment trusts.

Consider non-monetary factors too. Mentorship, lead flow, office culture, and local market knowledge can change your early productivity and therefore your income timeline. Compare projected transaction volume against local median sale prices when estimating realistic early-year earnings.

Typical mistakes new agents make and how to avoid them

New agents often underestimate living expenses during slow months. Real estate income can be lumpy, so plan a buffer and a spending plan for months without a closing. Create a simple budget that separates personal and business cash flow to avoid running short when commissions are delayed Inman on commission splits.

Other common errors include not clarifying in writing which fees are charged and when, and failing to track deductible expenses for accurate tax reporting. Document all split agreements and fee schedules, and keep receipts and a log for mileage, marketing, and professional services.

Establish basic bookkeeping habits early. Use a simple spreadsheet or accounting app to record income and expenses by transaction. Set aside a portion of each payout for estimated taxes and consult a tax professional about self-employment rules and quarterly payments. If you want guidance on structuring contractor-style income and workflows, see how to become a freelancer.

Putting it together: realistic next steps and expectations

Checklist: confirm local commission norms, ask brokers for written split and fee examples using a $300,000 or local-median sale, run the sample scenarios using your own assumed fees and tax rates, and consult the IRS guidance for self-employed tax obligations IRS self-employed individuals tax center.

Where to verify numbers: national industry sources and labor statistics provide context on commission ranges and median wages, but local MLS data and conversations with local agents will give the most reliable picture of typical splits and fees in your market NAR quick real estate statistics.

Expect variability. The BLS median wage for real estate sales agents shows broad distribution of annual earnings, which reflects differences in transaction volume and local prices; use conservative estimates until you have a few closed transactions to measure actual net revenue BLS real estate agents overview.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.