Compensation Plans for Real Estate Agents

Quick Takeaways

  • Agents can be compensated several ways, including
  • 100 % Commission Split Model
  • Referral Fees From One Brokerage to Another and Agent Split

Source: How Real Estate Agents Are Compensated (The Balance, Nov. 30, 2022)

Real estate has long been a compensation-based industry. While many REALTORS® are compensated using traditional split broker-agent compensation structures, there are many ways that REALTORS® earn a commission for their services in a real estate transaction. Learn the basics of real estate compensation structures, insight on how REALTORS® are compensated, and the rules surrounding compensation in a short-sale transaction.

Agent compensation depends on commissions that can be split in a variety of ways with the broker or other agents. CEL & Associates published their annual survey of roles in the real estate industry, including corporate, development and investment portfolio management positions. NAR’s Member Profile reveals the median gross income of REALTORS® was $54,300 in 2021.

Freddie Mac has updated their Short Sale Transaction and Processing Requirements as of 2023 and covers brokers’ sales commissions.

See References for more information.