What Real Estate Agents Actually Make on a $300,000 House

You're buying or selling a $300,000 house. You know commissions are part of the deal, but where does that money actually go? And more importantly, what does this tell you about building wealth through real estate?

On a $300,000 sale, total commissions run $15,000 to $18,000. That's 5-6% of the sale price. But that money gets split four ways before anyone sees a dime.

How the Commission Split Actually Works

Most transactions follow the same pattern. Total commission gets divided between the listing side and buyer side. Then each brokerage takes a cut before the agent gets paid.

Here's the breakdown:

• Listing brokerage: Gets half the total ($7,500-$9,000)
• Buyer's brokerage: Gets the other half ($7,500-$9,000)
• Individual agents: Keep 50-80% of their brokerage's share

Run the numbers on a 6% commission. That's $18,000 total. Split evenly, each side gets $9,000. If an agent has a 70/30 split with their broker (pretty standard), they take home $6,300. The broker keeps $2,700.

Your agent probably made $4,500 to $7,200 on that deal. Not bad for a few weeks of work.

What You're Actually Paying For

Paying $15,000-$18,000 in commissions stings. But let's be honest about what you get.

A decent listing agent will price your home correctly, stage it, photograph it, list it everywhere that matters, host showings, negotiate offers, coordinate inspections, handle paperwork, and troubleshoot problems before closing.

Most agents put in 60-80 hours per transaction. At $6,000 take-home, that's $75-$100 per hour. Respectable, but not crazy considering the liability and expertise involved.

Buyer's agents do similar work from the other side - finding properties, arranging tours, writing offers, protecting your interests through due diligence.

Commission Rates Aren't Fixed

The 5-6% standard is just that - standard, not mandatory. I've seen 3% in hot markets where homes sell in days. I've seen 7% in rural areas where properties sit for months.

Discount Models

Companies like Redfin offer reduced rates, sometimes 1-1.5% for listing agents. On a $300,000 house, that saves $3,000-$6,000. But you usually trade service level or marketing reach.

Flat-fee brokerages charge a set amount regardless of price. You might pay $2,500-$5,000 total instead of a percentage. For a $300,000 house, that's real savings, but you're handling more yourself.

Luxury Properties

Commission percentages often drop on higher-priced homes. A $1 million property might carry 4-5% instead of 6%. The dollar amount is still substantial, but percentages become negotiable when numbers get large.

Why Owning Beats Selling

Agents make decent money. But owning investment property? That's different.

Buy that $300,000 house as a rental with 20% down ($60,000). Rent it for $2,200 monthly. After mortgage, taxes, insurance, and maintenance, you clear $300 monthly. That's $3,600 yearly, or 6% cash-on-cash return.

But that's not the whole story. Real estate gives you four profit centers:

• Cash flow: $3,600 yearly
• Appreciation: 3% annual growth = $9,000 in year one
• Mortgage paydown: Tenants pay roughly $4,800 toward principal
• Tax benefits: Depreciation and deductions save thousands

Add it up. You're looking at over $17,000 in total benefit from year one. That's nearly what the agents made, except you keep earning year after year.

If comps are messy, I pass.

The Wealth-Building Formula

Most real estate millionaires didn't get rich selling houses. They got rich buying and holding them.

The formula is simple: Buy a cash-flowing property with a mortgage. Hold 5-10 years while tenants pay down your loan. Refinance or sell to access equity. Repeat.

Buy one $300,000 rental every two years for a decade. That's five properties. By year ten, with modest 3% appreciation, your portfolio is worth over $1.7 million. Your total invested capital? Around $300,000 in down payments.

That's your money working for you.

Tax Advantages You Can't Ignore

When you pay $18,000 in commission on a $300,000 sale, you can't deduct it from income taxes if it's your primary residence. But you can subtract it from capital gains, reducing your tax burden.

For investment properties, the advantages are better. You can deduct mortgage interest (often $10,000-$15,000 annually), property taxes, insurance, maintenance, repairs, management fees, and depreciation (roughly $10,000 yearly on a $300,000 property).

Depreciation is a paper loss that shields real income from taxes. You're making money and legally avoiding taxes on much of it.

Trust the numbers, not your gut.

Common Commission Mistakes

Choosing Based on Rate Alone

The cheapest agent isn't always the best deal. An experienced agent charging 6% who sells your home for $310,000 instead of $300,000 just made you $4,000 extra. A discount agent who gets $295,000 actually cost you money.

Not Negotiating in Buyer's Markets

When inventory is high and homes sit for months, commissions become negotiable. Sellers are motivated. Agents know they might not get another shot soon. Don't be afraid to ask for 5% instead of 6%.

Forgetting Everything's Negotiable

The 6% standard isn't mandatory. I've seen commissions negotiated down to 4% on straightforward sales in competitive markets. Everything in real estate is negotiable, including agent fees.

I'd rather miss a deal than burn a buyer.

How Wholesalers Fit In

Wholesalers operate differently. Instead of percentage-based fees, they make money through assignment fees - typically $5,000-$15,000 per deal, sometimes more.

A wholesaler finds a distressed $300,000 property they can get under contract for $240,000. They assign that contract to an investor for $250,000, pocketing $10,000 without ever taking ownership.

No license required. Minimal capital needed. Close deals in 30-45 days instead of waiting years for appreciation. It's an active strategy that generates immediate income.

Other Investment Strategies

You don't need $60,000 for a down payment to get started.

House Hacking

Buy a duplex or triplex. Live in one unit. Rent out the others. Your tenants cover most or all of your mortgage. On a $300,000 triplex, you might live in one unit and collect $2,400 monthly from the other two, covering your $2,200 mortgage.

BRRRR Method

Buy, Rehab, Rent, Refinance, Repeat. Purchase a distressed property for $240,000, invest $30,000 in renovations, refinance at the new $300,000 value, pull your capital back out, repeat. You can build a portfolio rapidly with the same initial capital recycled multiple times.

Don't fall in love with a property.

REITs and Crowdfunding

If you can't or don't want to manage properties, Real Estate Investment Trusts let you invest with as little as $500. You won't see the same tax benefits, but you get exposure to appreciation and income without landlord headaches.

What's Changing in 2026

The industry is shifting. Recent legal challenges to commission structures mean we might see significant changes in how agents get paid.

Predictions for the next few years:

• More buyers paying their own agent directly instead of relying on seller-paid commissions
• Increased transparency in fee structures and services
• Growth in flat-fee and discount models
• Technology reducing transaction costs and potentially lowering commissions

For investors, these changes could mean lower transaction costs and higher net returns.

Running Your Own Numbers

You have $60,000 to invest. Instead of using it as a down payment on a primary residence, you buy a $300,000 rental.

Year 1 Returns:

• Cash flow: $3,600
• Appreciation: $9,000 (3% on $300,000)
• Mortgage paydown: $4,800
• Tax savings from depreciation: $2,500
• Total benefit: $19,900

That's a 33% return on your $60,000 in year one. And it compounds every year you hold the property.

After ten years, assuming the same conservative 3% appreciation, your property is worth $403,000. Your tenants have paid down roughly $65,000 of principal. You've collected $36,000 in cash flow. Total return? Over $200,000 on a $60,000 investment, not counting tax benefits.

Run your numbers twice before you call anyone.

Getting Started

Understanding agent commissions is interesting. Using that knowledge to inform your own investment decisions? That's powerful.

Start small if you need to. House hack a duplex. Wholesale your first deal. Partner with an experienced investor on a flip. But start.

The agents selling that $300,000 house will make their $6,000-$7,000 and move on. The investor who buys it strategically? They'll be building wealth for decades.

Every successful real estate investor I know took action instead of just studying from the sidelines. The best time to invest was ten years ago. The second best time is right now, in 2026.

If the seller won't budge, I move on.

FAQ

Can you negotiate real estate commissions?

Yes. Everything in real estate is negotiable, including agent fees. The 5-6% standard is common but not mandatory. I've seen commissions as low as 3% in hot markets and negotiated down to 4% on straightforward sales.

Do buyers pay real estate agent commissions?

Traditionally, sellers pay both agents' commissions out of the sale proceeds. However, this is changing in 2026. More buyers are paying their own agents directly instead of relying on seller-paid commissions.

What's the difference between a listing agent and a buyer's agent commission?

The total commission gets split evenly between both sides. On a $300,000 house at 6%, that's $9,000 each. But each agent only keeps 50-80% after their brokerage takes a cut, so individual agents typically make $4,500-$7,200 per transaction.

Are real estate commissions tax deductible?

For primary residences, you can't deduct commissions from income taxes, but you can subtract them from capital gains calculations. For investment properties, you can deduct them along with mortgage interest, property taxes, insurance, maintenance, repairs, and depreciation.

Stop wondering how much others make off transactions. Start building your own portfolio. FlipMantis combines deal analysis, comp research, rehab estimating, and pipeline tracking in one platform - built for investors who want to move fast and make smart decisions.