# How much money does a real estate agent get from a commission?

2 or 3% of selling or buying price
The commission may vary from state to state, but the standard amount is six percent. But the commission may be divided three ways, depending on who listed, showed, and sold the property, and who owns the real estate agency. The commission is paid by the seller of the property, not the buyer.

A real estate broker is a real estate agent who has additional licensure and is usually the owner of the real estate agency. The broker employs real estate agents (sellers) to list, show, and sell property for the agency, but they work on commission, not salary. When a person decides to sell their property through a real estate agent, they will contact a real estate agency to list the property. The agent who lists the property is the listing agent, but other real estate agents, including the broker, can show and sell the property to prospective buyers, too.

The agent who shows the property to the one who purchases it (the agent who 'closes the deal') is the selling agent. This can even be a real estate agent who works for another agency (broker), since it's rather common for one agency to list a property and another one to show and sell it.

So, say John Brown wants to sell his house and contacts ABC Real Estate Agency. He speaks to the agent who was listed on the 'For Sale' sign and, after the agent meets the seller and examines the property, they decide on a price for the house, fill out all the paperwork, and it's now on the market. That agent is the listing agent.

Then Simon Smith drives by the house, sees it, likes it, and wants to look at it. So he calls the agency who has it listed (ABC Real Estate Agency). But the listing agent isn't available, so another agent shows Simon Smith the house. Simon Smith loves the house, agrees on the price, and buys it. The second agent is the selling agent. In this case, the total commission of 6% on \$250,000 is \$15,000, and will be divided three ways. The broker will get 2% of the commission, which is \$5,000. The listing agent will also get \$5,000 at 2%, and the selling agent will get \$5,000 at 2%, as well.

But if the listing agent had been the one to also show and sell it, they would have received \$10,000 commission, and the broker would have received \$5,000. And if the broker had listed, shown and sold the house, he would have received the entire 6% commission of \$15,000.