Compensation Plans for Real Estate Agents

Quick Takeaways

REALTOR® compensation and commission plans vary, from traditional broker-agent splits to the 100% commission structure.

Most REALTORS® are earning commission under a fixed broker-agent split or a graduated split.

It is important for home buyers and sellers to understand how the services REALTORS® offer, from marketing to negotiating offers, translate to a commission payment on the home sale.

Source: 2021 National Association of REALTORS® Member Profile

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.

See References for more information.