How Much do Real Estate Agents Make? A Definitive Guide

How Much do Real Estate Agents Make? A Definitive Guide


If you’re thinking about setting up an agency that will generate additional passive income, you might be wondering, “How much do real estate agents make?”

Getting the right information on the expected income of a new career will help you have better financial planning. We researched real estate agents across the globe to find out how much money they make each year and what factors influence their earnings.

What is the average income of a real estate agent?

On average, real estate agents make $62,990 per year. Although most agents do not get a basic income, you may determine their yearly earnings by adding up all of their take-home commissions over the course of a year.

On a $255,739 home (the national median home value), an agent’s take-home earnings is $4,350.

A total number of yearly sales/Avg. Per sale earnings = Annual earnings/Avg. Per sale earnings

$14.5 sales = $62,990 per year / $4,350 per sale

According to in their January 2019 report. The average yearly wage for real estate agents was $41,289.

Sellers/Contracts: Real estate agents typically earn 7.5% of the selling price of a property and 6.2% of the selling price of a contract, with a 10% commission available for homes that sell for over $1 million in a given year. In order to boost earnings, agents might be able to add buyers to their deals.

We also examined the types of properties agents typically buy and found that agents in certain markets do better than others.

How much do real estate agents make in the US?

On average, you’d have to earn roughly $105,000 per year to make it as a real estate agent, according to American Brokerage Services. This includes everything you do in the business, from interacting with customers to selling homes.

Agents who live in the San Francisco Bay Area or Southern California will earn the highest, earning an average of $124,000 per year. Many others are in the mid-to-high $90,000 range.

Breaking it down by region, agents in the northern Midwest or North Dakota will typically make about $75,000 a year, while agents in San Diego earn the least with $54,000.

You could be paid much more. Here’s how.

Assuming you have a clean record and a clear work ethic, you could earn as much as $190,000 annually. Here’s what will influence how much you make.

How much do real estate agents make in Canada and Australia?

Aside from U.S. real estate agents, there are at least two other countries where the real estate agent business is profitable and very lucrative.

In Australia, real estate agents earn about AUD $180,000 (about $157,000), including commissions, and in Canada, real estate agents earn about CAD $155,000 (about $130,000). These are the highest-earning real estate professions worldwide, according to our research.

These numbers are in Canadian dollars and are paid in a single year.

What factors influence real estate agents’ earnings?

On average, real estate agent’s income is influenced by many factors. Most top real estate agents earn over $200,000 annually, while a few rake in more than $300,000. The way you set up your company and negotiate a high fee with your client is crucial for earning higher commissions. The following 4 factors can determine the earnings of an agent.

  • Demography or Location
  • Your Local Economy
  • Your Network
  • Your Company or Project Expenses
  • Number of sales
  • Years of experience
  • Hours worked
  • Local real estate prices
invest in real estate

Related: How To Invest In Real Estate And Earn Big

Generally, you will be receiving 1.5 to 2 percent of the sale price of the home or condo. However, be aware that this is a fixed percentage and does not rise or fall with the prices of the homes in which the agent works.

If an agent works in one area and sells one home a year, you will be receiving less commission as the price of the home rises. However, if you work in a hot real estate market, you could be able to earn more.

How to become a Real estate agent

When you first start looking into becoming a real estate agent, it might be hard to see how much you can make. However, doing research is a great place to start.

Do a study on what agents are actually charging. Not all agents charge the same. Consult with other agents in your area or in different cities. One agent’s hourly rate could be very different from another’s.

Compare different sales commissions with your agent network to make sure you’re getting the best deal.

Find out if you have the required experience and education to become an agent. Check what state licenses and licenses you have to look out for, along with the total number of classes or hours you need to take.

Be sure you’re ready to sign up for an MLS or agreement.


When entering the industry, it’s vital to understand how real estate agents are paid. In order to be considered an expert, you may have to do more than just real estate. A stern marketing strategy needed to be devised.

Climb up the ranks and start your real estate career now.

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