How Much Does Real Estate Agent Make?

How Much Does Real Estate Agent Make

Lovely future real estate tycoon! Do you have dreams of selling glamorous estates and charming cottages? Wait a minute before you count your chickens, or you may be counting your dollars before they hatch! Curious? How much does Real Estate Agent make?

Prepare yourself because we are about to plunge into the secret world of pay scales, states, and skills for success.

According to Indeed, as of the 8th of April 2024,  the average annual wage for a real Estate Agent in the United States is $ 98,516 a year.

How Much Does Real Estate Agent Make?

Real Estate Agent Make Money

Let’s explore the earning details of real estate agents per hour, week, and monthly!

Periodical Earning of Real Estate Agent 

Period Earnings
Weekly $1,859.33
Hourly (standard 40-hour work week) $46.48
Hourly (considering more than 40 hours) $46.48
Monthly $6,975

How Do Real Estate Agents Make Money?

How Do Real Estate Agents Make Money

There are three main paths for real estate agents to earn income: 

  1. Job
  2. Self-employed
  3. Start own company

Let’s delve into each option in detail


Many real estate agents opt to work for established real estate brokerages. They start as associates and often receive a modest salary or hourly wage while they learn the business. Their earnings will increase over time as they gain experience and stay performance-motivated. 

As an employee, s/he has a network of resources, guaranteed income, and steady housing provision in the form of agency encouragement. 

Nevertheless, real estate agents get tied down by restrictions on their independence outside the broker’s offices, split commissions in different brokerage systems, and a capped potential for earnings as relatively low-level workers without capital to experiment with.


Real estate agents opting for self-employment create their environment and set goals. As independent contractors or part-time staff, they earn money in commissions from selling property. 

This road makes it possible to set commission rates, pick clients, or lay out marketing strategies. Managing the business overhead – such as marketing, office space, and insurance – becomes the job of the self-employed agent. 

But the potential reward lies in potentially higher income, your unique approach to doing business, and the freedom to break into niche markets or specialize in different types of real estate.

Start Your Own Company

For real estate agents with an entrepreneurial spirit, starting their own real estate company is an ambitious undertaking.

Starting a business offers the opportunity to build a brand, create a unique corporate identity, and potentially expand the scale of operations.

Entrepreneurs in this field often invest in a strong online presence using the following strategies

Invest in Website Development

Real estate professionals invest heavily in professionally designed websites, crafting digital storefronts showcasing portfolio properties, agent expertise, and testimonials from satisfied clients.

These virtual platforms are meticulously optimized to engage potential buyers and sellers, drawing them into the agent’s orbit.

Don’t lag and have your website!

Build your own online business now!

SMM (Social Media Marketing)

Real estate agents use SMM (Social Media Marketing) to have Internet exposure. With platforms such as Instagram and Facebook, the real estate agent posts information about homes for sale and what a good sales incentive is. 

SMM promotes not only their visibility but also helps the agent to build authority in real estate. It’s a type of marketing for clients seeking professional advice on real estate transactions. In short, you can increase awareness of your business through social media marketing. 

SEO ( Search Engine Optimization)

By implementing proven local SEO tactics, such as keyword-rich content tailored for geo-targeted searches, real estate agents ensure visibility for those specifically browsing listings in a desired community. 

This strategic approach consistently generates qualified leads from individuals actively hunting for houses in the target area. Be Visible to Your Prospects!

Get SEO services for Real Estate Now!

Factors Influencing Real Estate Agent Earnings

Factors Influencing Real Estate Agent Earnings

Real estate agents’ income is affected by many factors, so just as the industry changes, do they. What are the key factors that drive housing brokerages?

  • Geographic Location

Real estate agent salaries can differ substantially from state to state and city to city in the U.S.A.Agents working in a metropolitan area or a coastal complex might receive salaries considerably higher than those of their rural areas.

  • Experience

The salaries of seasoned real estate agents are often higher than the salaries of their inexperienced agents. Experienced professionals with many connections and a good reputation might be in a position to work out even better contracts with their clients.

  • Commission Structure

In general, commissions are the main source of revenue for the majority of real estate agents. Commission rates are subject to change and more expensive properties usually result in higher commission payouts. Most agents receive 5% to 6% commission.

  • Specialization and Niche Markets

Agents specializing in luxury homes, commercial real estate, and other niche markets could earn more money because of the type of properties they manage.

  • Brokerage Firm

The brokerage firm with which an agent is affiliated can also impact their earning potential. Some firms may offer higher commission splits or additional bonuses based on performance. Common commission splits are 50/50 or 60/40 between the agent and broker.

Top 10 Highest Paying Cities for Real Estate Agent Positions

City Annual Salary Monthly Pay Weekly Pay Hourly Wage
San Mateo County, CA $120,038 $10,003 $2,308 $57.71
Danville, CA $109,778 $9,148 $2,111 $52.78
Issaquah, WA $108,837 $9,069 $2,093 $52.33
Richmond, CA $107,475 $8,956 $2,066 $51.67
Kirkland, WA $106,472 $8,872 $2,047 $51.19
Bellevue, WA $105,904 $8,825 $2,036 $50.92
Bolinas, CA $105,673 $8,806 $2,032 $50.80
Westwood, MA $104,722 $8,726 $2,013 $50.35
Lynnwood, WA $103,629 $8,635 $1,992 $49.82
Cool Valley, MO $103,302 $8,608 $1,986 $49.66


The average wage in 10 cities for a Real Estate Agent position is higher than the average for all of America. The top spot on the list is San Mateo County, CA, and Danville, CA. Danville, CA, and Issaquah, WA close behind in second and third places. 

Issaquah, WA beats the national average by $23,044 (26.9 percent) and San Mateo County, CA continues to follow that trend, with an additional $34,245 (39.9 percent) over the average of $85,793.

Top 5 Highest-Paying Jobs in the U.S. Related to Real Estate Industry

We have identified at least five jobs that are related to the Real Estate Agent, which pay more than the normal salary.

 Examples of these positions include Real Estate Director, Commercial Real Estate Manager, and Real Estate Partner.

Let’s discuss their responsibilities:

Role Responsibilities
Real Estate Director
    • Strategic planning and execution for real estate operations
    • Leadership and team guidance
    • Decision-making on acquisitions, investments, and portfolio management
    • Stakeholder collaboration and risk management.
  • Financial oversight and performance metrics.
Commercial Real Estate Manager
  • Property management, leasing, and tenant relations.
  • Lease negotiation and market analysis.
  • Investment evaluation and budget management.
  • Reporting on property performance and financial metrics.
Real Estate Partner
  • Business development and client acquisition.
  • Client relations and personalized real estate services.
  • Deal structuring, negotiations, and transaction closures.
  • Investment strategy development and portfolio management.
  • Networking for industry presence.

It is important to note that each of these jobs pays between $23,531 (27.4 percent) and $33,032 (38.5 percent).

Role Requirements
Real Estate Director
  • Bachelor’s or Master’s degree in Real Estate, Business, or a related field
  • Extensive experience in real estate leadership roles
  • Strong strategic and analytical skills
  • Excellent communication and negotiation abilities.
  • In-depth knowledge of real estate market trends and regulations.
Commercial Real Estate Manager
  • Bachelor’s degree in Real Estate, Finance, or a related field.
  •  Proven experience in commercial real estate management.
  • Negotiation and lease agreement expertise.
  • Analytical skills for market research and financial analysis.
  • Effective communication and relationship-building skills.
Real Estate Partner
  • Extensive experience in real estate with a successful track record
  • Proven business development and client acquisition skills.
  • Strong negotiation and deal-closing abilities
  • In-depth knowledge of investment strategies and portfolio management.
  •  Well-established network in the real estate industry.

If you fulfill the requirements, then securing one of these Real Estate Agent positions could provide you with more money than the typical job.

Job Title Annual Salary Monthly Pay Weekly Pay Hourly Wage
Real Estate Director $118,825 $9,902 $2,285 $57.13
Commercial Real Estate Manager $114,487 $9,540 $2,201 $55.04
Real Estate Partner $113,105 $9,425 $2,175 $54.38
Real Estate Principal $109,393 $9,116 $2,103 $52.59
Real Estate Engineer $109,324 $9,110 $2,102 $52.56

Data Source: Indeed

How Can Real Estate Professionals Make Money?

Real Estate Professionals Make Money

The success of a real estate agent is largely dependent on their efforts but, as small-business owners, they must also consider certain aspects when forecasting their revenue for the year. Let’s see how real estate makes money.

  • The Number of Homes Sold

The more properties agents sell, the higher the amount of money they earn. Commission-based income is contingent on the successful conclusion of a sale and closing the deal, a crucial step in earning money as a real estate agent. 

The majority of agents can sell anywhere from four, and six houses per year.

  • Years of Experience as a Real Estate Agent

 Agents who have been in business for decades have gained valuable insights into the market for real estate and have gained years of experience that has led to successful practices.

 Each time you sell you’ll be able to identify which strategies are the most effective and how to deal with different situations.

  •  Professional Network Connections

Real estate agents who have an extensive circle of contacts and former clients can continue to benefit from these connections. Word of mouth is one of the most efficient ways to gain business, and it isn’t expensive for the agent.

Agents who make positive and meaningful connections with their network in the real estate market will help keep their businesses moving forward. 

Agents who are new or less engaged in networking will make fewer connections and thus have less potential to develop new business.

  • Business Costs

Apart from organically promoting via word of mouth Real estate agents frequently have to invest money to promote their services or to continue education. 

Examples of these expenses are billboards, digital advertisements, park bench advertisements, as well as business expenses such as phone and internet bills, office equipment, food, and fuel with clients. Let’s estimate the cost!

Estimated Cost of Marketing 

Expense Category Average Yearly Cost Range
Marketing & Advertising
-Billboards $5,000 – $20,000 Highly dependent on location and size
-Digital Ads (Social Media, Online Listings) $2,000 – $10,000 Depends on platform, campaign goals, and targeting
Print Ads (Newspapers, Magazines) $1,000 – $5,000 Varies based on publication circulation and ad size
Park Bench Ads $500 – $2,000 Local and regional cost differences apply
Business Expenses
          Phone & Internet $600 – $1,200 Depends on the service provider and plan
Office Equipment (Software, Computers, etc.) $1,000 – $5,000 Variable based on specific equipment needs
Food & Fuel with Clients $500 – $2,000 Dependent on the frequency of client meetings and dining out


  • Fees for Brokerage

Real estate agents can’t operate on their own and must be part of a brokerage firm which means that all commissions and transactions are directly to the broker, who shares the commission among all agents who are involved with the sale. 

A typical commission split will give an agent 60%, while the broker will receive 40 percent. However, different contracts could have ratios like 50/50 or 70/30 and others. Some brokerage firms could charge a marketing fee in addition.

  • Opportunity Zone

Agents who work in metropolitan areas such as New York City and Los Angeles have the potential to earn more than those who work in more rural or smaller areas. 

For instance, when an agent in real estate sells homes in a pricey neighborhood in which the average price is $500,000 versus $200,000, the realtor could anticipate earning a larger commission from the sale. 

Of course that more expensive cost of living typically is associated with living in busy areas.

How Much Do Real Estate Agents Make in Commission?

When a property is introduced to the market, the seller and the listing broker enter into a listing agreement. This agreement details the terms of the listing, including the broker’s compensation, usually presented as a commission.

 It is important to know that the commission is subject to negotiation. It’s illegal under the antitrust laws of the United States for those in the real estate industry to attempt, even if subliminally to impose a uniform commission rate.

Commissions usually vary between 5% and 6 percent of the final price of the sale, but they can be lower or higher based on market conditions. 

 Unless the seller and buyer agree to an agreement on a split, it’s the seller who is accountable for the payment of the commission.

The majority of sellers incorporate commissions into the asking price, therefore it could be said that the buyer pays at least a portion of the commission, whether directly or indirectly (through an increase in the price of the purchase).

The agreements between the agent of the seller as well as the buyer’s agent are controlled by their respective agreements with their broker sponsor.

These agreements define the agent’s share of the commission. It could be split 50/50 between the agent and the broker or any other arrangement they decide to use.

How do Commissions are Shared?

Commissions from real estate transactions are typically divided between several individuals. In the typical real estate transaction the commission is divided in the following four ways:

  • Agent who took the listing from the seller.
  • Listing broker – the broker who works as the listing agent for the seller.
  • The buyer’s agent is the person who represents the buyer.
  • The person who represents the buyer’s agent.

How Much Does a Real Estate Agent Make on a Home Sale?

How To Become A Real Estate Agent

Real estate agents earn their income primarily through commissions, usually calculated as a percentage of the home’s sale price. The national average commission rate is 6%, typically divided equally (50/50) between the listing and buyer’s agents.

For instance, on a home valued at $500,000, the total commission would be $30,000. Each agent receives $15,000, and after factoring in broker splits, a moderately experienced agent might take home around $7,500 from the sale.

How To Become A Real Estate Agent?

To become a real estate agent, follow these steps:

  • Obtain a High School Diploma: Complete high school or pass the General Educational Development (GED) test.
  • Take a Real Estate Course: Enroll in a pre-license course to gain a foundational understanding of real estate principles.
  • Pass the Real Estate Exam: Upon completion of the pre-licensing course, take your state’s exam in real estate.
  • Get a License in Real Estate: If you pass the exam, proceed to apply for a real estate license in your state. Expect to pay the licensing fee, which usually costs between $100 and $350.
  • Update Your Resume: List your education, real estate license, and any relevant experience.
  • Work for a Broker in Real Estate: See a licensed broker who takes care of real estate transactions. 
  • Build Your Network: Create your network by networking in your community and cultivating a list of potential clients. There are several ways to become visible to your neighbors. Make sure to list your services online and use local media to help spread the word about your property.

10 Benefits for Real Estate Agents

  1. Real estate agents often enjoy health insurance coverage as part of their benefits package.
  2. Employee Assistance Programs provide valuable support to agents, enhancing their well-being.
  3. Employee discounts may be available, offering cost-saving perks to real estate professionals.
  4. Flexibility in scheduling is a common benefit, allowing agents to manage their work-life balance effectively.
  5. Health insurance coverage is typically provided to safeguard their health and well-being.
  6. Agents also enjoy life insurance that provides them with more financial benefits.
  7. Mileage reimbursements assist agents in covering travel expenses incurred during work-related activities.
  8. Opportunities for promotions benefit them in their career advancement.
  9. Paid personal time off is a valuable benefit, allowing agents to take a break and recharge when needed.
  10. Various additional benefits, such as continuing education credits, may enhance the overall compensation package for real estate professionals.

6 Ways to Make Extra Income as a Real Estate Agent?

6 Ways to Make Extra Income as a Real Estate Agent

Since being a real-estate agent is similar to running an enterprise of a small size It is crucial to make the right decisions that will result in a lucrative income. Following are the ways to earn more money as an agent:

  • Short Sales

Homeowners often face challenges when selling their homes as they may not receive offers that cover their outstanding home loans. In such cases, a listing real estate agent engages in negotiations with the bank to persuade them to accept a reduced amount

If the bank agrees, the agent can list the seller’s home in the usual manner, a process commonly referred to as a short sale.

  • Broker Price Opinion (BPO) Maker

A different avenue for earning money in real estate is through Broker Price Opinion (BPO). This report, exclusively prepared by licensed appraisers, assesses the value of homes. If you have a real estate license, you can be a BPO report maker.

The task involves comparing multiple homes for pricing, providing relevant statistics, and offering commentary to benefit home sellers.

As a real estate agent engaged in BPO preparation, you have the potential to earn between $30 to $100 per report. The job is straightforward, involving tasks like inspecting homes or simply analyzing pictures of exteriors and interiors.

  • Be a Property Manager

Most landlords are not on top of the administrative tasks that are associated with owning a home and choose to hire property managers.

 Real estate agents earn an additional income by taking care of the properties they manage for them. It includes maintaining the buildings and collecting rent.

  • Sell Commercial Real Estate

The profession of a commercial real estate agent can be more profitable financially because of the steady monthly income that is earned from leasing. 

Leasing is renting, which means that you’ll continue to receive payments regularly, instead of only on a commission. 

Conduct thorough research about the business industry before contacting potential clients. Then update your professional business card and website to highlight your expertise.

  • Become a Realtor

Realtors are licensed professionals. They are the agents licensed by the state who adhere to strict ethical standards and can increase your credibility and network within your industry which can aid in gaining more sales. 

Connect with fellow agents to explore the benefits of joining local chapters of the National Association of Realtors for valuable insights and networking opportunities.

  • Be An Agent

Brokers have a lot of advantages over independent real estate agents. They oversee the agents that are part of their company and earn an amount of commissions paid to agents in addition to other administrative costs.

The median earnings for brokers is $70,215 annually plus $42,000 in commission. For the most current salary information, click the hyperlink provided.

How Much Does Real Estate Agent Make: FAQs

What are the Cons of Being a Real Estate Agent?

The Advantages and Disadvantages of a Career in Real Estate

  • Pros #1: Attaining Independence.
  • Pros #2: Experiencing a Sense of Responsibility.
  • Pros #3: Gaining Respect.
  • Pros #4: Engaging in Exciting Work.
  • Cons #1: Facing Downtime.
  • Cons #2: Engaging in Inappropriate Tasks.
  • Cons #3: Dealing with Unusual Working Hours.
  • Cons #4: Managing Irregular Income.

How Long Before You Start Making Money in Real Estate?

New real estate agents generally begin earning income within three to six months of starting their careers.

Is it hard to Make Money as a Real Estate Agent?

Whether it’s easy or hard to make money as a real estate agent depends largely on individual factors like work ethic, market conditions, and skillset. 

Wrapping Up

We hope that now you’re aware: How much does Real Estate Agent make?  The secret to success is making strategically correct choices and adapting to market nuances.

As with other options, it is possible to earn money by doing short sales or renting out your property.

Based on the traditional commission model, real estate professionals can forge a lucrative, successful career by working hard and making careful decisions.

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