Real Estate Agent Salary: How Much Do Real Estate Agents Make on Average?  

Introduction to Real Estate Agent Earnings 

Welcome to the world of real estate agent earnings, where the potential for financial success is unlimited. Whether you're considering a career in this dynamic field or simply curious about the potential, this guide will shed light on how much you can actually make as a real estate agent, and the factors that influence how much you can earn. Let’s get started! 
 

The Basics of Real Estate Salaries  

Real estate agents, your paycheck comes from commissions. You earn a percentage of the property's sale price when you help clients buy or sell. Let’s break down the basics on how real estate agents get paid.  

How Money is Divided Between Brokers and Agents 

Some states don’t require agents to work under a sponsoring broker. But some real estate agents must work under the umbrella of a real estate brokerage. The commission earned from a sale is usually split between the broker and the agent. The exact division varies, but it's typically a mutually agreed-upon percentage. This arrangement keeps things fair and ensures everyone gets their share of the hard work. 

• Commission split: 

The specific commission split between agents and brokers varies based on agreements. Here’s how it generally works: 

• Percentage Split. A percentage of the commission earned goes to the broker, and the rest goes to the agent. The percentage split can vary and is often based on factors such as the agent's experience, production level, and the services provided by the brokerage. 

• Other Models. Brokerages may offer different commission structures, such as 70/30, 60/40, or even 50/50 splits. More experienced agents might negotiate higher splits. 

 

Here’s an Example of How a Standard Commission Might Be Distributed 

• If the total commission is 6%, it might be distributed as 3% to the seller's agent and 3% to the buyer's agent. 

• If the agent is working under a brokerage, the shares would be divided between the agent and their respective brokerage based on the agreement in place. 

Why Do Most Real Estate Agents Get Paid 6% Commission? 

The 6% commission is simply a traditional benchmark. Commission rates are not actually fixed or regulated by any governing body. This percentage is often used as a reference point for discussions, but actual rates can vary based on factors like market conditions and individual negotiations. 

Factors That Influence Real Estate Agent Earnings 

Not every real estate agent's salary is going to look the same across the country. There are several factors that influence real estate agent earnings, including: 

 

• Geographic Location & Local Real Estate Market Trends 

You’re probably familiar with the golden rule in real estate: location, location, location. Where a real estate agent works has a significant impact on how much they can earn. Factors such as property values, demand, and market dynamics vary widely across the US.  

• A Solid Educational Background  

Top-performing agents need to be savvy in skills such as negotiation, communication, marketing, and navigating complex transactions.  

 

Continuing Education courses can teach you about these concepts and how to apply them to real-life scenarios.  

In addition, staying up-to-date with industry regulations, market trends, and emerging technologies can enhance an agent's ability to provide value to their clients. This expertise can lead to higher client satisfaction and loyalty, translating into repeat business and referrals. 

• Networking & Marketing  

Having a good name among your clients really makes a difference when you’re in such a people-centered industry. Lenders, inspectors, fixer-upper pros, clients, and legal experts are all people you’ll come in contact with. If you leave a good impression (i.e., do your job and do it well), they’ll be more likely to recommend you to people who need assistance buying or selling a property.  

Marketing also plays a crucial role in a real estate agent’s success. It’s worth investing in Continuing Education courses to ensure you are a professional at both networking and marketing your business.  

 

• Specializing in Niche Categories Can Help You Earn More as an Agent 

Specializing in a specific niche within the real estate industry brings a range of benefits that could impact your client roster and salary.  

 

How Much Does a Real Estate Agent Make in Each State? 

Here’s how much real estate agents make annually, monthly, weekly, and hourly – according to the state you live in.  

States With Average Real Estate Agent Salaries Between $60,000-$79,999 

State	Annual Salary	Monthly Pay	Weekly Pay	Hourly Wage
Indiana	$79,632	$6,636	$1,531	$38.29
Arizona	$79,607	$6,633	$1,530	$38.27
Rhode Island	$78,874	$6,572	$1,516	$37.92
South Dakota	$78,806	$6,567	$1,515	$37.89
North Dakota	$78,747	$6,562	$1,514	$37.86
Pennsylvania	$78,601	$6,550	$1,511	$37.79
New Hampshire	$78,516	$6,543	$1,509	$37.75
Idaho	$78,457	$6,538	$1,508	$37.72
Iowa	$78,447	$6,537	$1,508	$37.71
Georgia	$78,256	$6,521	$1,504	$37.62
Connecticut	$78,026	$6,502	$1,500	$37.51
Illinois	$76,653	$6,387	$1,474	$36.85
Montana	$76,373	$6,364	$1,468	$36.72
New Mexico	$75,542	$6,295	$1,452	$36.32
Ohio	$75,394	$6,282	$1,449	$36.25
Utah	$73,886	$6,157	$1,420	$35.52
Colorado	$73,874	$6,156	$1,420	$35.52
Tennessee	$73,794	$6,149	$1,419	$35.48
Mississippi	$72,704	$6,058	$1,398	$34.95
South Carolina	$71,344	$5,945	$1,372	$34.30
Michigan	$70,688	$5,890	$1,359	$33.98
Missouri	$70,307	$5,858	$1,352	$33.80
Kansas	$69,901	$5,825	$1,344	$33.61
West Virginia	$67,726	$5,643	$1,302	$32.56
Louisiana	$67,661	$5,638	$1,301	$32.53
Alabama	$67,274	$5,606	$1,293	$32.34
Florida	$67,204	$5,600	$1,292	$32.31
Kentucky	$65,465	$5,455	$1,258	$31.47
North Carolina	$65,140	$5,428	$1,252	$31.32
Arkansas	$64,446	$5,370	$1,239	$30.98

 

States With Average Real Estate Agent Salaries Between $80,000-$90,000+ 

 

State	Annual Salary	Monthly Pay	Weekly Pay	Hourly Wage
Washington	$98,516	$8,209	$1,894	$47.36
New York	$93,951	$7,829	$1,806	$45.17
Maryland	$91,525	$7,627	$1,760	$44.00
Virginia	$91,207	$7,600	$1,753	$43.85
California	$90,804	$7,567	$1,746	$43.66
Delaware	$90,329	$7,527	$1,737	$43.43
Oklahoma	$86,655	$7,221	$1,666	$41.66
Massachusetts	$86,206	$7,183	$1,657	$41.45
Nevada	$85,822	$7,151	$1,650	$41.26
Vermont	$84,429	$7,035	$1,623	$40.59
Oregon	$83,504	$6,958	$1,605	$40.15
Wisconsin	$83,446	$6,953	$1,604	$40.12
New Jersey	$83,373	$6,947	$1,603	$40.08
Maine	$82,699	$6,891	$1,590	$39.76
Nebraska	$82,648	$6,887	$1,589	$39.73
Hawaii	$82,569	$6,880	$1,587	$39.70
Alaska	$81,170	$6,764	$1,560	$39.02
Minnesota	$81,147	$6,762	$1,560	$39.01
Texas	$81,127	$6,760	$1,560	$39.00
Wyoming	$80,261	$6,688	$1,543	$38.59

 

 

The 5 Highest Paying Cities for Real Estate Agents 

The benefits of a successful career as a real estate agent exist no matter where you live. But, in certain cities, it’s just a little bit easier to build a sky-scraping salary.  

1. Washington, D.C. 

In Washington, D.C., homes are worth about $693,655 on average. The city has many good government jobs that pay well, and there are also lots of successful businesses. This makes it a great place to start a real estate career. The population in Washington, D.C. has gone up by 14.6% since 2010, which is almost twice as much as usual. This growth is predicted to keep happening.  

2. San Antonio, TX 

Even though San Antonio is a big city, homes aren't super expensive here. The average home value is about $248,346. This means real estate agents can earn good money from commissions, and the cost of living is still reasonable. For new agents, starting a career here is a great idea. There are many potential homebuyers to help. As agents gain experience, they can even sell pricier properties in places like the Texas hill country or nearby Austin. 

San Antonio's private businesses are also doing well, and more jobs are expected. What’s more, the city has a big military population, which helps keep the economy steady. It's also important to mention that San Antonio is one of the fastest-growing cities in the country. 

3. Oakland, CA 

Oakland has many of the same benefits as San Francisco, but it's more affordable. While the average home price is still high at around $953,536, that’s still lower than the average in San Francisco. With the rise of remote work and tech innovation nearby, Oakland is attractive to new entrepreneurs. Many people who used to live in San Francisco are moving to Oakland to get better value for their money, which is part of why the city has seen so much growth in recent years. 

 

4. Oklahoma City, OK 

Oklahoma City is a wonderful mix of being affordable and having a lot of room to grow. This is exciting news for agents starting their business and for investors aiming for long-term success. In the last ten years, Oklahoma City's population has grown a lot — a whopping 17.4% — and it's not showing any signs of slowing down. 

 

5. New York City, NY 

Discover the magic of networking in New York City, where the opportunities are boundless. You'll meet everyone from global investors to young finance enthusiasts, creating a perfect arena for sales in the bustling Big Apple. Picture this – selling a dazzling $169 million penthouse! It's true, competition is fierce, prices run high, and the cost of living can be a challenge. But cracking the NYC scene is like mastering a global stage. If agents can thrive in the city that never sleeps, they can excel anywhere. Contrary to what you might think, NYC is growing, too. 

 

 

Examples of Real Estate Specializations and Their Potential Earnings 

 

•  Luxury Properties  

Specializing in high-end, luxury properties can be lucrative. These properties often have higher price points, which can lead to larger commissions. 

• Commercial Real Estate 

This niche involves dealing with business properties, including offices, retail spaces, and warehouses. It requires a different skill set than residential real estate but can be very profitable. According to Forbes Advisor, the demand for commercial real estate rentals is continuing to rise. Another report by a commercial real estate services company, JLL, said that rents for office properties rose nationally by 0.3% between the final months of 2022 and the first quarter of 2023. These upward trends mean that clients will be more likely to buy commercial real estate.  

•  Historic Homes  

Some agents specialize in selling historic homes. This niche requires a deep understanding of preservation laws and a love for older architecture. Clients often buy historic homes as investment opportunities.  

• Foreclosures and Short Sales 

During economic downturns, the market for foreclosed or short sale properties can grow. Agents specializing in this area need to understand the complexities of these types of sales. 

• Green and Sustainable Homes 

The market for single-family green housing is growing. It’s expected to reach $209.34 billion in 2026 at a CAGR of 14.7%. And, as more people become interested in reducing their environmental impact, the market for green and sustainable homes will become very popular. Agents in this niche need to be knowledgeable about green technologies and sustainability practices. 

 

The Role of Brokerages in Agent Earnings 

Brokerages play a crucial role in determining how much money real estate agents earn. They provide the framework, support, and resources agents need to succeed financially. 

When you join a brokerage, you're essentially joining a team that helps you navigate the real estate world. They offer training, tools, and a platform to connect with clients. In return, they usually take a percentage of the commission you earn from each sale. 

Choosing the right brokerage is important because it can influence your earnings and overall career trajectory. Some brokerages might offer higher commission splits but fewer resources, while others could provide more training and marketing support in exchange for a larger portion of your commission. 

Understanding Different Brokerage Models and Their Income Impact 

Brokerages come in various models, each affecting how much money you make as a real estate agent.  

Traditional Brokerage Model 

• Agents receive support and resources in exchange for a portion of their commission. 

• Typically provides office space, training, and marketing tools. 

• Income Impact: commission split varies, with agents keeping a percentage and the brokerage taking a share 

 

Franchise Brokerage Model 

• Part of a larger real estate brand with established systems 

• Agents benefit from brand recognition and marketing 

• Income Impact: commission split may be influenced by franchise fees. 

 

Boutique Brokerage Model 

• Smaller and more specialized brokerages 

• Offers a personalized approach and tight-knit community 

• Income Impact: Commission split may be negotiable based on services provided 

 

100% Commission Brokerage Model 

• Agents keep the majority of their commission but pay a fixed fee or monthly dues for services. 

• More independent, with fewer resources provided 

• Income Impact: potential to keep a larger portion of your earnings 

 

Online or Virtual Brokerage Model 

• Operates digitally, often with lower overhead costs 

• Provides tools for agents to work remotely 

• Income Impact: commission split varies, with potential cost savings due to virtual operations 

 

Each model has its pros and cons, all of which impact the resources you receive, the support available, and how much of your earnings you keep. Understanding these models can help you choose the one that best aligns with your income goals and preferred way of working. 

 

Frequently Asked Questions About Real Estate Agent Earnings 

 

How much can I expect to earn in my first year as a real estate agent? 

How much you earn in your first year as a real estate agent depends on which state you hold a license in. Many agents start out by earning a significantly lower salary but actually double their income once their first year is complete.  

To get a better idea of how much you can earn according to the state you live in, click here. 

What is the average salary of a real estate agent in the US? 

The average national salary is just over $94,586 for full-time agents. However, agents with a few years' experience and a solid educational background under their belt report earning as high as $112,610 a year. It’s important to keep in mind that real estate is a career without a ceiling when it comes to salary growth. Some top agents in places such as Los Angeles sell up to $500 million in properties a year. There aren’t limits to where your career can take you! 

What skills can help me increase my earnings as a real estate agent? 

Continuing Education courses are the fastest track to success when you’re trying to become a high-caliber real estate agent. To increase your salary, you’ll need education in how to effectively work with your clients and close deals, how to market your business accordingly, and more.  

How does the commission split work between agents and brokers? 

The commission split can be different depending on what agreement the brokerage has.  

Usually, when a house is sold, the commission is about 6% of the final sale price. This commission is divided into four parts. First, it's split between the brokerages of the agents who listed the house and found the buyer. After that, the commission is divided again, either equally 50/50 or with a slightly bigger part for the broker and a slightly smaller part for the real estate agent. 

How much can a part-time real estate agent expect to earn? 

Data from Zip Recruiter states that the average pay range for a part-time real estate agent varies greatly (by as much as $35,000).  

What expenses should I plan for as a real estate agent? 

While every state has different policies regarding the following, you’ll need to prepare to pay for Continuing Education, Post-Licensing Education, license renewal fees, and any fees regarding your applications.  

Don’t Wait - Start Building the Real Estate Career (and Salary) You’ve Always Dreamed Of  

Now that you’ve seen the financial potential of a successful real estate career, you can get started on your education without any doubt that you’ll thrive. Being your own boss with a dependable salary – and a salary you can actually grow with – is so rewarding. So don’t wait to dive into this world of possibility, learning, and opportunities. Start your Pre-Licensing education today!