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How much money do real estate agents actually make?

Arlington VA real estate:
http://rhlarlington.c21redwood.com/

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Arlington VA real estate blog:
http://www.rhlarlington.com/

In this video, real estate agent and Realtor Matt Leighton talks about how much money real estate agents ACTUALLY make. $400,000 is a common sales price in Arlington, VA and Matt breaks down an example commission (numbers used are average and may or may not be accurate for your exact market).

If you are looking for the average real estate salary or how much real estate brokers actually make in commissions. Prices used are around the industry average for homes for sale in Arlington, VA.

Here is the breakdown for how much a real estate agent would make on a $400,000 sale:

Sales price: $400,000
Buyer's agent commission: 2.75% of the sales price
$400,000 * .0275 = $11,000

Franchising fee: 6% of gross commission
$11,000 * .94 = $10,340

Brokerage split: 30% of gross commission
$10,340 * .7 = $7,238

Team split: 15% of gross commission
$7,238 * .85 = $6,152.30

Desk fee: $450
$6,152.30 - $450 = $5,702.30

Other expenses:
-- Taxes (all figures are pre-tax)
-- Healthcare (your broker will not pay for your healthcare
-- Errors & Omissions Insurance
-- BPOL tax (Business, Professional and Occupant License)

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Matt Leighton - Arlington VA Real Estate Agent
Matt [at] Orange Line Condo dot com
Licensed in VA and D.C.
Century 21 Redwood Realty
1934 Wilson Blvd
Arlington, VA 22201
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