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How do agent costs impact real estate agent take-home pay?
Real Estate AgentsReal Estate MarketingMortgageBuyersSellers
Answer
Agent costs such as brokerage splits, referral fees, marketing expenses, transaction coordination, and taxes can consume thirty to fifty percent of gross commissions, significantly reducing take-home pay. For example, on a $350,000 home with a three percent commission, these costs can eliminate thousands from net earnings. Agents must track and control these expenses rigorously to increase profitability. Efficient budgets and lean operations make one home sale monthly financially viable.