Do you know how much do real estate agents make? Most individuals will need the services of a real estate agent either while buying or selling a house. Due to how complicated it is to buy and sell real estate, licensed agents are in high demand.
In this post, we’ll go through the salary ranges and income streams of real estate brokers, as well as provide some advice for those interested in breaking into the industry. You’ll likely hire a real estate agent if you’re in the market to purchase or sell a house.
For their efforts, real estate agents often get commissions equal to a fixed percentage of the property’s final selling price.
- Real Estate Agents Earn Commissions.
- A Single Commission Is Normally Shared in Four Ways: Agent, Broker, Seller, And Buyer.
- The Commission Split Depends On Agent-Broker Agreements.
Agents’ annual earnings are determined by many criteria, such as the volume of business closed, the number of commissions earned, and the commission split with the broker that sponsors them.
What follows is a breakdown of the many ways in which real estate agents are compensated, as well as the average annual salary earned by such professionals.
How Much Do Real Estate Agents Make Per Sale?
An average commission for a listing agent is 5% to 6% of the selling price. But in most cases, the buyer’s agent will also get a portion of that fee.
- The Typical Commission For A Listing Agent Is 2.8 Percent.
- The average Commission For Buyer’s Agents Is 2.7%.
However, agents don’t get to keep the whole commission they get from a transaction; they must also pay a part to the broker they report to.
Here is how a typical commission is divided up between brokers and agents.
Most agents receive roughly 1.5% commission on every deal. That’s $3,000 out of a purchase price of $200,000 for a house. Real estate brokers, however, may make a substantial profit off of houses in the upper price ranges.
How Much Do Real Estate Agents Make on a Home Sale?
A 6% commission is typical. Your agent and the buyer’s agent divide this amount by 50-50.
Not always: According to the Consumer Federation of America, in Charlotte, North Carolina, the selling agent gets.05 to 1% more than the buyer’s agent. In Savannah, Georgia, the selling agent receives 3.6% and the buyer’s agent 2.4%.
Your agent must also divide half with their broker. Ycharts predicts a national average house value of $354,300 by 2021. A 6% commission equals $21,258. Half would go to your agency and the other half to the buyer’s agent, leaving your agent with $10,629.
That’s not your agent’s take-home compensation. Your agent owes a portion to his broker. Depending on the agent’s expertise, they owe the broker between less than half and two-thirds. Assuming intermediate experience, the agent’s take-home compensation is $5,314.50.
The 2020 average real estate agent income is $62,990, according to the government.
Many variables affect an agent’s yearly earnings. These include market strength, geography, and agent experience. Some realtors sell many properties annually, but not most. Derek Whitner, a top-selling Atlanta realtor, says the typical Realtor® sells 4-8 homes a year.
How Much Do Real Estate Agents Make in Commissions?
When supply exceeds demand, prices are low, and competition between buyers is low, sellers are more likely to bargain. In this instance, a seller’s broker may offer a bigger compensation to the buyer’s broker, particularly if the buyer is dealing with a low-commission agency.
“Seller’s market” is the reverse. The seller’s broker may get more if demand exceeds supply. This is when bidding wars, higher prices, and fewer houses in hot locations might occur.
As the sector fluctuates, there’s no fixed method for setting commission splits. Most real estate agent commission calculators use a 50/50 formula. With such a hefty average real estate agent commission, many sellers and buyers worry whether they’re worth it. Cost-effective?
How Much Do Real Estate Agents Make An Hour?
While it is not typical for agents to get paid on an hourly basis, knowing the going rate in the industry may be instructive. It will give you a solid notion of what you may be made in the real estate market and help you plan it out. To what extent, on average, does a real estate agent’s compensation depend on the length of time a transaction takes?
As of the year 2020, the median hourly wage for a Realtor is $30.28, as reported by the Bureau of Labor Statistics. This equates to a $12.07 hourly wage for those in the lowest 10% and a $54.05 hourly wage for those in the highest 90%. The median hourly wage for agents is $23.58.
Commission vs Hourly Pay: Which One Is Better?
While real estate brokers aren’t paid by the hour, a commission-based payment structure might have several advantages over an hourly one. For starters, it has the potential to foster a spirit of competition and desire, both of which are positive attributes that may serve to propel you toward your goals.
Technically speaking, as a real estate agent, you are your own boss since you are considered an independent contractor. This provides you with the flexibility to work as much or as little as you choose.
Those who are paid on an hourly basis are expected to work a certain number of hours each week. However, if you work on commission in real estate, you have far more leeway and more opportunities to earn as much as you can.
In the end, if you want to be sure of a steady income, you should probably go elsewhere than the real estate sector. Otherwise, you can guarantee your financial security by developing a thorough real estate business strategy.
How Much Do Real Estate Agents Make a Week?
Income for real estate brokers varies greatly from year to year, with the annual salary being the primary determinant of the weekly salary. Because real estate salespeople do not get a regular paycheck every week or month, this is particularly true.
As an alternative, they are compensated only via commissions. This implies that we will need to divide yearly profits by the number of weeks in a year to estimate real estate agents’ weekly compensation. As can be seen in the table below for the year 2022, the division’s output varies.
- Top 10% One May Make $2,096 Per Week If They Earned $110,000 Or More.
- Those With The Median American Income Of $52,000 Per Year May Expect To Take Home $1,000 Each And Every Week.
- The 75th Percentile Earner (Those Earning $100,000 Per Year) Would Take Home $1,923 Per Week.
How Much Do Real Estate Agents Make a Month?
Anyone thinking about a job as an agent should keep in mind that they will not be compensated every month. Instead, they are compensated via commissions, so if they have a slow month in sales they will also have a slow month in income.
Nonetheless, we can estimate the median earnings of real estate agents by taking their yearly revenue and dividing it by 12. This gives us the median earnings of these professionals each month.
- The Median Real Estate Agent Pay In 2019 Was $62,060, Which Equates To A Monthly Income Of $5172.
- There Is No Set Salary For Real Estate Brokers.
- It Is Common Practice For Real Estate Brokers To Get A Commission Of Between 2.5% And 3% Of The Selling Price Of The Property They Sell.
Do Realtors Make Good Money?
You may earn a lot of money as a real estate agent, particularly if you operate in a location where lots of properties change hands or where the homes often sell for high prices. Because real estate brokers are often compensated by a percentage of the home’s final selling price, a high asking price may have a significant impact on their earnings.
- Real Estate Agents Often Make Between 2.5% And 3% In Commission.
- On Average, Real Estate Brokers Earn $46,000 A Year.
- Fewer Than 10% Of Sales Associates In Any Industry Earn More Than $110,000 Yearly.
How Much Do Real Estate Agents Make a Year?
The typical real estate agent makes $45,990 per year, according to the BLS. Incomes vary widely. 10% of real estate agents made less than $23,000, while 10% made over $110,000.
A qualified and skilled real estate agent represents buyers and sellers. They advertise, sell, negotiate, and conclude deals.
A real estate agent is crucial to homebuying. They assist you to understand the market, bargain, and guide you through purchasing or selling a house. Real estate agents may show you listings and answer local queries.
Agents operate on commission, so they only get paid when they sell your house. Commissions average 6%. The typical pay varies by location, property sold, and experience. $30k to $100k each year.
Commissions and incentives may add up if you work hard. Real estate agents don’t require any schooling or training, so it’s simple to understand why many individuals want to be one.
People usually prefer a local realtor who knows property values and house prices in various places. People employ those who are responsive when needed.
What Percentage Do Real Estate Agents Make?
Real estate agents work hard for their clients and are compensated with a commission based on the sale price of the house.
Even though their final compensation is calculated as a percentage of the selling price, the precise number differs by location. The typical commission for selling a house is between 4.53% and 6.48% of the transaction price. A 5% average is typical throughout the country.
Typically, the listing agent receives the whole commission up front (the agent who worked with the seller). The selling agent will retain a percentage of the sale price (usually between 2% and 3%), and the buying agent will get the remaining 50%.
Let’s pretend you just sold your property for $300,000 with the help of a listing agent who asked for a 6% commission. Your listing agent would get $18,000 in commissions after the sale of the house. That gain would be shared with the buyer’s agent, yielding $9,000 in earnings for both parties.
However, although 5%-6% is where the national average lies, not all agents will get that kind of fee. There might be price differences between sellers. For example, Some agencies only charge a one percent listing cost to their clients. Find an agent whose commission is reasonable by doing some homework and looking around.
How to Become a Real Estate Agent?
It takes around four to six months to complete the necessary training to become a licensed real estate agent. Getting your real estate license often entails completing a prelicensing course, passing the licensing test, and finally, signing up with a brokerage.
Only licensed real estate professionals who are also members of the National Association of Realtors (NAR) and who abide by the NAR’s rigorous Code of Ethics may call themselves Realtors.
The time and money needed to earn your real estate license can vary based on where you live. Here is a rough overview of what it takes to become a real estate agent. However, the specifics may vary by state.
- Step 01: Investigate The Prerequisites Of Your State
- Step 02: Consider Enrolling In A Prelicensing Course
- Step 03: Participate In The Licensing Examination
- Step 04: Activate Your Real Estate Agent License
- Step 05: Think About Starting A Career In Real Estate
- Step 06: Join A Brokerage Firm That Deals In Real Estate
How Much Does a Real Estate Agent Make in California?
How much does a California real estate agent earn in 2022? Indeed.com reports that in California, real estate agents earn a median yearly base pay of $90,097.
And if you’ve been working in the field for more than ten years, your salary might rise to an average of $106,676 every year.
This is only an estimate, since actual compensation may differ based on a variety of elements, including but not limited to years in the industry, level of education and certification, area of specialty, number of hours worked per week, percentage of commission, and so on.
Salary levels can change from one business to the next. In retrospect, it seems that the most lucrative businesses in California are.
- There Is A Fair-Trade Real Estate Market Where One May Make A Yearly Salary Of $153,762.
- There Is An Annual Income Potential Of Up To $138,538 With Ready Real Estate.
- At REALI, Annual Compensation Is $126,233.
- At Douglas Elliman, The Annual Salary For A Top Agent Is About $125,922.
It’s important to remember that earnings vary somewhat from city to city in California. Agents in the real estate industry might thus anticipate a profit.
- The Average Long Beach Resident Can Expect To Earn $102,320 Annually.
- In Corona, One May Expect To Pay About $102,262 Annually.
- The Average Salary In Los Angeles Is $102,028.
- The Average Salary In Sacramento Is $101,900 Per Year.
- Earning $99,962 A Year In Irvine.
Salary increases of 61.67 percent are possible for real estate agents in the state of California who are also skilled in market research, have substantial sales experience, are familiar with basic online tools like WordPress, and can manage Google Ads.
How Much Does a Real Estate Agent Make in Texas?
As of the 30th of October 2022, a Texas real estate license will get you an average yearly salary of $67,484. If you need a quick salary calculator, it comes out to around $32.44 per hour. That’s the same as $1,297 every week, or $5,623 per month.
Licensed Real Estate Agent salaries in Texas vary from $45,813 (25th percentile) to $86,439 (75th percentile) with high earners (90th percentile) earning $129,659 yearly, according to data.
There may be numerous prospects for development and greater income depending on skill level, location, and years of experience for Licensed Real Estate Agents, given the wide salary range that this profession offers (up to $40,626).
Recent activities indicate that demand for Licensed Real Estate Agents in the state of Texas is low. When comparing the median annual wage of real estate agents across all 50 states, Texas comes in at number 48.
How Much Does a Real Estate Agent Make in New York City?
As of the 30th of October 2022, a Real Estate Agent in New York can expect to make an average yearly salary of $98,634. For the sake of convenience, it comes out to around $47.42 per hour using a basic wage calculator. The weekly amount comes out to $1,896 and the monthly total is $8,219 at this rate.
While we have seen incomes as high as $218,630 and as low as $20,223, the median annual salary for a Real Estate Agent in New York is present at $161,239, with the 25th percentile earning $65,589.
Since Real Estate Agent salaries may go as high as $43,726 on average, there’s room for negotiation depending on factors like education, experience, and market demand.
Recent job posting activity indicates that there is not a lot of demand for Real Estate Agents in New York.
When comparing Real Estate Agent wages across all 50 states, New York comes in at #4.
We constantly examine our database of millions of open jobs advertised locally around the United States to get the most accurate yearly pay range for Real Estate Agent positions.
How Much Does a Real Estate Agent Make in Utah?
As of the 30th of October 2022, Real Estate Agents in Utah may expect to earn a median salary of $76,878 each year. To help you with a quick salary calculation, it comes out to around $36.96 an hour. You’d be spending around $1,478 every week or $6,406 per month at this rate.
Real estate agents in Utah may make anything from $16,400 to $177,301 per year. The median salary is $53,190, the 25th percentile salary is $88,650, and the 90th percentile salary is $130,759.
Since Real Estate Agent salaries may go as high as $35,460 on average, there’s room for negotiation depending on factors like education, experience, and market demand.
Recent job posting activity indicates that demand for Real Estate Agents in Utah is low, with very few employers actively seeking new candidates.
Regarding Real Estate Agent compensation, Utah ranks 37th out of all 50 states.
Constantly monitoring its database of millions of live jobs posted locally around the USA allows us to determine the most accurate yearly pay range for Real Estate Agent positions.
How Much Does a Real Estate Agent Make in New Mexico?
As of the 30th of October 2022, Real Estate Agents in Utah may expect to earn a median salary of $76,878 each year. To help you with a quick salary calculation, it comes out to around $36.96 an hour. You’d be spending around $1,478 every week or $6,406 per month at this rate.
Real estate agents in Utah may make anything from $16,400 to $177,301 per year. The median salary is $53,190, the 25th percentile salary is $88,650, and the 90th percentile salary is $130,759.
Since Real Estate Agent salaries may go as high as $35,460 on average, there’s room for negotiation depending on factors like education, experience, and market demand.
Recent job posting activity indicates that demand for Real Estate Agents in Utah is low, with very few employers actively seeking new candidates.
Regarding Real Estate Agent compensation, Utah ranks 37th out of all 50 states.
Constantly monitoring its database of millions of live jobs posted locally around the USA allows us to determine the most accurate yearly pay range for Real Estate Agent positions.
How Much Does a Real Estate Agent Make in Tennessee?
The median yearly salary for a real estate agent in Tennessee is $63,765 as of the 30th of October, 2022. In case you need a quick wage calculation, it comes out to around $30.66 per hour. That works out to $1,226 a week or $5,313 per month.
Part-time real estate agents in Tennessee may make anywhere from $18,032 to $139,248, with the majority making between $32,056 (25th percentile) and $90,160 (75th percentile) every year, and the highest-earning 10 percent getting $112,700 (90th percentile).
There may be numerous prospects for development and better compensation for a Part-Time Real Estate Agent depending on skill level, location, and years of experience since the typical salary range is rather large (up to $58,104).
Recent job posting data suggests that demand for Part-Time Real Estate Agents in Tennessee is low, with just a small handful of firms actively recruiting.
Regarding earnings for part-time real estate agents, Tennessee ranks tenth among the 50 states.
We routinely search our database of over a million open jobs posted locally around the United States to get the most accurate yearly pay range for Part Time Real Estate Agent positions.
How Much Does a Real Estate Agent Make in Florida?
As of the 30th of October 2022, a Real Estate Agent in Florida may expect to make an average of $74,089 each year. In case you’re in the market for a quick salary calculator, it comes out to around $35.62 per hour. One may say that this amounts to $1,424 per week or $6,174 per month.
In Florida, Real Estate Agent salaries vary widely from the low end (at $15,323) to the high end (at $122,170), with the median salary falling somewhere between $49,696 (25th percentile) and $82,827 (75th percentile).
Since Real Estate Agent salaries may go as high as $33,131 on average, it’s safe to assume that there are plenty of prospects for promotion and raises depending on one’s degree of expertise, geographic region, and length of service in the field.
Recent job posting activity indicates that demand for Real Estate Agents in Florida is low, with very few employers actively seeking new candidates.
When compared to the median income of Real Estate Agents across all 50 states, Florida comes in at number 42.
We constantly examine our database of millions of open jobs advertised locally around the United States to get the most accurate yearly pay range for Real Estate Agent positions.
How Much Does a Real Estate Agent Make in Illinois?
As of the 30th of October 2022, the median salary for a real estate agent in Illinois was $71,947 a year. If you need an easy way to figure out money, that’s around $34.59 per hour. This is equal to $5,995 every month, or $1,383 per week.
In Illinois, Real Estate Agent salaries vary widely from the low end (at $15,810) to the high end (at $170,922), with the median salary falling somewhere between $51,276 (25th percentile) and $85,461 (75th percentile) and the 90th percentile (highest earners) getting $126,055 each year.
Since Real Estate Agent salaries may go as high as $34,185 on average, there’s room for negotiation depending on factors like experience, education level, and market demand.
Recent job posting activity indicates that demand for Real Estate Agents in Illinois is low, with very few employers actively seeking new candidates.
Among the 50 states, Illinois Real Estate Agent wages are 47th highest.
We constantly examine our database of millions of open jobs advertised locally around the United States to get the most accurate yearly pay range for Real Estate Agent positions.
How Much Does a Real Estate Agent Make in Michigan?
As of the 30th of October 2022, the typical salary for a Real Estate Agent in Michigan was $73,956. In case you’re trying to figure out how much money you’ll be making, it comes out to around $35.56 per hour. Money-wise, that’s $1,422 each week or $6,163 per month.
Real Estate Agent salaries in the state of Michigan vary from $16,271 (the lowest paid) to $175,904 (the highest paid), with the middle 50% earning between $52,771 and $87,952 and the top 10% earning $129,729 each year.
There may be numerous prospects for growth and greater compensation depending on skill level, location, and years of experience since the typical salary range for a Real Estate Agent is rather wide (up to $35,181).
Recent job posting activity indicates that demand for Real Estate Agents in Michigan is low and that few businesses are actively recruiting.
Regarding Real Estate Agent pay, Michigan is ranked 45th out of the 50 states.
We constantly examine our database of millions of open jobs advertised locally around the United States to get the most accurate yearly pay range for Real Estate Agent positions.
How Much Does a Real Estate Agent Make in Nebraska?
As of the 30th of October 2022, a Real Estate Sales Agent in Nebraska may expect a median yearly salary of $90,996. In case you need a quick wage calculation, it comes out to around $43.75 an hour. That works out to $1,749 a week or $7583 per month.
Real estate sales agents in Nebraska may make anything from $38,578 to $190,509 each year. The middle fifty percent earn between $76,203 and $108,590, while the top ten percent earn $142,881.
Since Real Estate Sales Agent salaries may go as high as $32,387 on average, there is room for negotiation depending on factors such as education, experience, and market demand.
There does not seem to be a lot of demand for Real Estate Sales Agents in Nebraska at the moment, as seen by the low number of job postings presently available.
Regarding Real Estate Sales Agent compensation, Nebraska is ranked number 30 out of all 50 states.
We constantly analyze our database of millions of live jobs advertised locally around America to generate the most accurate yearly pay range for Real Estate Sales Agent positions.
How Much Does a Real Estate Agent Make in North Carolina?
As of the 30th of October 2022 in North Carolina, the average salary for a Real Estate Agent is $65,091 a year. If you need a quick salary calculator, it comes out to around $31.29 per hour. This is equal to $5,424 every month or $1,251 per week.
Real Estate Agent wages in North Carolina vary widely, from a high of $154,941 to a low of $14,332, with the median salary falling somewhere between $46,482 (25th percentile) and $77,470 (75th percentile) with the top 10 percent earning $114,268 yearly.
There may be numerous prospects for development and better income depending on skill level, region, and years of experience since the typical Real Estate Agent salary range is rather large (up to $30,988).
Recent job posting activity indicates that demand for Real Estate Agents in North Carolina is low, with very few employers actively recruiting.
The salary for Real Estate Agents in North Carolina is the 50th highest in the United States.
We constantly examine our database of millions of open jobs advertised locally around the United States to get the most accurate yearly pay range for Real Estate Agent positions.
How Much Does a Real Estate Agent Make in Washington?
As of the 30th of October 2022, a Washington state licensed real estate agent may expect to earn an average salary of $84,115 each year. In case you’re in the market for a quick salary calculator, it comes out to around $40.44 per hour. You’d be spending around $1,617 every week or $7,009 per month at this rate.
While we have seen incomes as high as $192,019 and as low as $20,438, the median annual salary for a licensed real estate agent in Washington is present at $161,360, with the 25th percentile earning $57,014.
There may be numerous prospects for development and improved income depending on skill level, location, and years of experience for Licensed Real Estate Agents since the typical salary range is so wide (up to $50,559).
The employment market for Licensed Real Estate Agents in Washington seems to be stagnant, with few organizations actively recruiting.
As far as compensation for licensed real estate agents is concerned, Washington ranks eleventh among the 50 states.
We constantly examine our database of millions of open jobs advertised locally around the United States to get the most accurate yearly pay range for Licensed Real Estate Agent positions.
How Much Does a Real Estate Agent Make in Arizona?
As of the 30th of October 2022 in Arizona, the average salary for a Real Estate Agent is $86,399. If you need a quick salary calculator, it comes out to around $41.54 an hour. This is equal to $7,199 every month, or $1,661 per week.
Top earners in Arizona make $142,465 a year, while the lowest paid get just $17,869 (the 90th percentile). Real estate agents in Arizona see incomes ranging from $57,952 (the 25th percentile) to $96,587 (the 75th percentile).
Since Real Estate Agent salaries may go as high as $38,635 on average, there is likely a wide range of potential earnings, depending on factors like an individual’s specific set of skills, geographic area, and amount of relevant work experience.
Recent job posting activity indicates that hiring activity for Real Estate Agents in Arizona is low.
When comparing Real Estate Agent wages across all 50 states, Arizona came in at number 17.
We constantly examine our database of millions of open jobs advertised locally around the United States to get the most accurate yearly pay range for Real Estate Agent positions.
Frequently Asked Questions: How Much Do Real Estate Agents Make?
When Are Real Estate Fees Paid?
Commissions for real estate transactions are typically shared between the broker and the agent after closing.
Do Real Estate Agents Get a Base Salary?
For the most part, real estate brokers only get compensation for their work. However, some agents, such as those working for Redfin, get a salary in addition to commissions.
Are You Supposed to Pay Your Real Estate Agent?
Customers don’t often hand over cash to real estate brokers. A percentage of the final selling price is given to the broker as a commission. Both the broker and the agent will get a portion of this sum.
Do Real Estate Agents Get Paid Weekly?
In most cases, real estate agents are paid every month. They put in time for free in the hopes of making a commission on sales. When the transaction closes, the brokers and the agents each get their share of the commission.
What Percentage Do Most Real Estate Agents Charge?
Commissions paid to real estate agents are usually between 4% and 6% of the transaction price. The brokerage and selling agent each get a portion of this sum.
Conclusion
Most real estate agents are compensated when a deal is closed in the form of a commission given to the broker. It is common practice for a single commission to be shared among numerous parties, including the listed agent, the listing broker, the buyer’s agent, and the buyer’s agent’s broker. Each agent’s commission is structured differently according to the terms of their sponsorship broker’s agreement with them.
