Do Realtors Make Good Money?

It’s one of the most Googled questions in real estate and for good reason. Real estate agents are often seen closing multi-million-dollar deals, prompting many people to wonder: just how much money do realtors actually make?

The answer? It depends.

Some agents earn six figures or more per year. Others make far less. It all comes down to how commission works, how many homes they help buy or sell, and whether they’re working full-time or part-time.

Here’s a breakdown of how real estate income works and why buyers should understand it, especially when it impacts what you pay.

How Do Realtors Get Paid?

Most realtors are paid on commission, meaning they earn a percentage of the home’s sale price. In traditional transactions, the total commission is typically 5–6% split between the listing agent (representing the seller) and the buyer’s agent.

That means:

• On a $1,000,000 home, a 5% commission equals $60,000
• Each agent (or their brokerage) might receive $30,000

However, agents don’t keep all of that. Many work under a brokerage that takes a cut. There are also expenses like marketing, transportation, insurance, and licensing fees.

Still, the potential earnings are high in hot markets especially in places like California, where home prices are well above the national average.

Full-Time vs. Part-Time Income

According to the National Association of Realtors (NAR):

• The median annual income for real estate agents in 2023 was around $56,000
• Top-performing agents can earn $100K+, while newer or part-time agents may make significantly less

Income varies widely based on:

• Number of transactions closed
• Average home price in their market
• Commission structure
• Time and effort invested

Do Buyers Pay Their Agent’s Commission?

Historically, buyer’s agent commissions were paid by the seller out of the sale proceeds. But industry practices are changing.

In today’s market, some buyers may be asked to cover their agent’s fee directly or negotiate credits or rebates as part of the deal. This makes it more important than ever to understand what your agent is charging, and whether that fee aligns with the value they provide.

Why TurboHome Is Different

At TurboHome, we believe real estate compensation should be fair, transparent, and performance-based.

That’s why we charge a flat fee depending on your price point instead of a percent-based commission. You know exactly what you’ll pay, and you only pay if you close.

Our agents are salaried professionals, not commission-driven salespeople. That means they’re focused on your goals and not their own payday.

Final Thought

Realtors can make good money but how much they earn shouldn’t affect how much you pay. With TurboHome, you get expert service at a flat rate, so you and the brokerage can focus on the home and not the commission.

Want to learn how our model can save you thousands? Visit TurboHome.com.