Why Do Real Estate Agents Make So Much Commission?

They Don’t!

According to this infographic.

The 1 line in the closing documents that we would love to remove, the Agent Commission.  The thinking goes something like this, “$6,000 commission for what? I could have put a sign out in the front yard!”

I do think that the author of this graph is a little bit biased toward the Real Estate Agent, however it does a great job of helping us understand why the commission structure is what it is.  The illusion that the Listing Agent simply puts a sign in the front yard and makes a couple fliers just is not accurate.


I don’t know about you but I am ok with paying a Real Estate Agent $29 an hour to sell my house.


Costs You May Not Have Thought Of:

  • Brokerage Fees
  • Marketing Costs (trust me this is more than you would think)
  • Operating Expenses
  • Training and Licensing
  • Taxes
  • Certifications
  • Time Spent (Communication, Presentations, Open Houses, Showing, Monitoring Showing Feedback, Inspections, Analyzing Comparables, Transaction Handling, Title and Escrow)
  • Negotiating


*I am a real estate broker


Enjoy the “Why Do Real Estate Agents Make So Much Commission” Infographic:


why do real estate agents make so much commission

Courtesy of Visual.ly