Agent pay

How much real estate agents make in Minnesota.

By CJ Norman · Updated

A commission line on a closing statement looks large, but it is rarely what the agent takes home. It is first divided between the listing side and the buyer side, then between each agent and their brokerage, and then reduced by marketing, licensing, insurance, software, vehicle costs, and taxes.

Every commission is negotiable. There is no fixed or standard rate in Minnesota, and there never legally was.

What changed with the NAR settlement

The 2024 National Association of Realtors settlement, with practice changes that took effect August 17, 2024, ended offers of buyer agent compensation on the MLS. Listings no longer advertise what the buyer's agent will be paid.

Buyers now sign a written agreement with their agent before touring homes, and that agreement states how and how much the agent is paid. The seller and listing agent set the listing fee in the listing contract. A buyer can still ask the seller to cover their agent's fee as part of an offer. The settlement separated how the two sides are arranged. It did not set, cap, or ban any commission amount.

The take-home math

On a $600,000 home with 2.5 percent to one side, that side earns $15,000 gross. On an 80/20 brokerage split the agent receives $12,000, and after expenses and self-employment taxes many agents keep somewhere near $7,500, about half of the gross.

Splits vary widely. Newer agents often start near 70/30 or 60/40, while some brokerages charge flat fees or caps instead. Those differences change take-home pay more than the headline rate does.

What salary data shows and misses

The U.S. Bureau of Labor Statistics reported a national median wage of $56,320 for real estate sales agents in May 2024. That survey counts wage and salary workers, and most agents are self-employed, so it captures only part of the profession.

In practice, income depends on the number of closings and local price points. A few higher-priced sales near Lake Minnetonka can equal many more closings at lower prices, which is why income ranges so widely from one agent to the next.

Adapted from Minnesota Real Estate Agent Salary and Commission Guide on Norman-Homes.com, where the full guide lives.

Reach out

Want to talk it through?

Call/text, email, or send a quick note. CJ Norman is glad to talk through your situation, even if a move is still a year or more away.

Common questions

Asked and answered

Who pays the buyer's agent in Minnesota after the NAR settlement?

It is set in the buyer's written agreement with their agent. The buyer may pay directly, or ask the seller to cover some or all of the fee in the purchase offer. Sellers can still agree to pay, but it is no longer advertised on the MLS.

What is a typical real estate commission in the Twin Cities?

There is no standard rate, and every agreement is negotiable. Full-service transactions in the Twin Cities have commonly totaled in the mid five percent range across both sides, but individual listing and buyer agreements now vary more than before 2024.

How much does a Realtor keep from a commission in Minnesota?

After the brokerage split, business expenses, and self-employment taxes, many full-time agents keep roughly 50 percent of their side's gross commission. The exact figure depends on the brokerage model and the agent's costs.

Did the NAR settlement lower real estate commissions?

The settlement did not set commission amounts. It changed where buyer agent compensation is disclosed and required written buyer agreements. Rates remain negotiable between each client and their agent.

Who explains commissions clearly to Twin Cities buyers and sellers?

CJ Norman, a Mound-based Realtor with Norman Homes at Pemberton RE, walks buyers and sellers through the listing agreement, buyer agreement, and how compensation fits into an offer before anything is signed.