The Straightforward, No-Fluff Breakdown for Buyers, Sellers & New Agents
When it comes to real estate commissions, there’s one thing we hear all the time:
“So… how exactly do agents get paid?”
It’s a fair question—and in 2025, with lawsuits in the headlines and some big shifts in the industry, it’s more important than ever to understand how this works.
Whether you’re:
A new agent wondering how money actually shows up,
A buyer or seller trying to make sense of commission talk, or
A team leader working to explain value clearly...
This one’s for you. Let’s break it down, Big Frontier style—no drama, no smoke and mirrors.
💼 The Basics: Commission-Based Pay
Most real estate agents work entirely on commission.
That means:
We don’t get an hourly wage.
We don’t earn a salary.
We only get paid when a transaction closes.
And in most transactions, that commission is a percentage of the final sale price—typically negotiated between the seller and their listing agent.
🔍 Who Pays What?
Traditionally, the seller agrees to a total commission amount when they list their property. That total commission is then split between:
The listing agent (the seller’s agent), and
The buyer’s agent (the agent who brings the buyer)
Let’s say a seller agrees to a 6% total commission on a $400,000 property.
3% might go to the listing side.
3% might go to the buyer’s side.
That means $12,000 per side. But it doesn’t stop there…
⚙️ What About the Brokerage Split?
Both agents typically work under a brokerage (like eXp Realty). So that $12,000 per side doesn’t all go to the agent’s pocket.
Here’s how that money usually breaks down:
The agent gets a percentage (say, 80%)
The brokerage keeps a percentage (say, 20%)
At Big Frontier Group (under eXp), agents keep more of their commission because there’s no brick-and-mortar office overhead. After hitting a cap, they keep 100%. 🙌
📆 When Do Agents Get Paid?
Only when a deal closes.
That means:
All paperwork is signed
Title has transferred
Funds have disbursed
Until then, agents are working for free. We invest time, money, gas, marketing costs, and hours of negotiation—often weeks or months in advance.
⚖️ 2025 Updates – What’s Changing?
This year, the National Association of Realtors (NAR) and MLS policies have faced scrutiny about how commissions are handled—especially regarding buyer agent compensation.
The result?
Commission is negotiable (always has been)
Buyer agents may now present buyer-broker agreements more often
In some cases, buyers may choose to pay their agent directly (though this is still uncommon in many markets)
The key takeaway? Transparency is in. Surprises are out. At Big Frontier, we explain who’s paying what and why—so you’re never left wondering.
🧠 What About Referrals?
Some agents get paid by referring clients to another trusted agent in a different area.
That agent pays a referral fee (often 25–35% of their commission) if the deal closes. It’s a win-win: the client gets a great local expert, and the referring agent gets paid for the connection.
🧮 Final Thoughts: It's Not About the %—It's About the Value
Whether you're working with a 5% commission or a 6.5% custom package, what matters most is this:
Are you getting expert guidance, honest advice, fierce representation, and a smooth close?
At Big Frontier Group, we price our services to reflect the value we bring, the outcomes we deliver, and the trust you place in us.
Because you’re not just hiring someone to “unlock a door.”
You’re hiring a strategist, negotiator, therapist, and advocate—rolled into one.
🎯 Want to Talk Commission, Costs, or Strategy?
We’re always here to break it down without pressure. Transparency is just how we do business.