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How Real Estate Commissions Are Split

A real estate commission is typically paid by the seller and split among four parties: the listing agent, listing brokerage, buyer agent, and buyer brokerage.

Commission Flow

1. Total commission is deducted from the sale proceeds 2. The total is split between the listing side and buyer side (often 50/50) 3. Each side is then split between the agent and their brokerage 4. Agent splits vary based on experience, production volume, and brokerage model

Common Split Structures

  • Traditional: 50/50 to 70/30 agent/broker split
  • High-producer: 80/20 or 90/10 for top agents
  • Cap model: Agent pays a fixed annual cap, then keeps 100%
  • 100% commission: Agent keeps all but pays a flat monthly desk fee
  • Ejemplo Resuelto

    A $450,000 sale with 5.5% total commission, 50/50 listing-buyer split, and both agents on 70/30 splits with their brokerages.

    1. Total commission: $450,000 x 5.5% = $24,750
    2. Listing side: $24,750 x 50% = $12,375
    3. Buyer side: $24,750 x 50% = $12,375
    4. Listing agent (70%): $12,375 x 70% = $8,663
    5. Listing brokerage (30%): $12,375 - $8,663 = $3,713
    6. Buyer agent (70%): $12,375 x 70% = $8,663
    7. Buyer brokerage (30%): $12,375 - $8,663 = $3,713