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How much commission does a real estate agent make?

The amount of commission that a real estate agent makes has historically been 3% of the price of the home. Thus for a $250,000 sale price for home, a real estate agent makes $7,500. Keep in mind that BOTH real estate agents—the buyer’s and the seller’s—will each make $7,500, so technically for each home sale with two real estate agents will pay out a commission of 6% or $15,000 in the case of a $250,000 home. The often overlooked fact of how much commission real estate agents get is that it is 100% up to the homeowner or home buyer. Commissions are merely suggested by agents, but they do not have to be accepted and they are, in fact, negotiable. TRELORA, for instance, is a flat fee agency, and we charge $3,000 in Denver and $4,000 in Seattle per transaction not 3%. We don’t think it’s fair to compensate an agent based on the price of a home, but rather the value of the work. Real estate agents make too much in commissions, which is why we have our fee structure as flat, and we save you thousands.