How Much Do Real Estate Agents Make Yearly In Average
Current Date:July 28, 2021
how much do real estate agents make.jpg

How Much Do Real Estate Agents Make Yearly In Average

The profession of a real estate agent is challenging and arduous a bit. Many well-educated people enter the career from various walks of life. Some are attracted by money, and some are attracted by glamour. But the inside image is different from what it looks from outside.

Not all agents can earn huge amounts of money. Even a new agent earns a little amount at the start of their career. It takes years to understand the business, influence the clients under the umbrella of brokerage. This is also true that patience and contribution to this career can bring success. In recent years the price of a house has risen so high that it has influenced the young generation.

In the USA, young to middle age people are throwing applications for an agent license. So, we will discuss how much do real estate agents make indeed. And also how their commission split among other salespeople.

How Much Do Real Estate Agents Make

87% of people purchase property with the help of a real estate agent. In America, 90% of people are dependent on real estate agents for buying a suitable home. So, how does an agent assist a client in buying their house? Everyone knows that an agent has a list of sellers. Who wants to sell their property and look for a buyer.

Agents list down the property and advertising. Then show the property to clients according to their choice. They do not participate only in buying and selling. They help a client by advising, pricing, providing legal help etc. Now the question is how they earn from this work. The simple answer would be they get a commission from the seller. They are paid by the commission for settle down transactions. It means if the property is sold to the buyer, the broker gets his commission.

But this commission depends on a few factors. And also, a broker cannot claim the full commission that he earns from a seller. Partial amount or percentage has to deliver to the agent or other seller. Apart from this, according to last year’s report, an average amount of earnings of agents is around $42000. Top class agent basically earns more than a new agent.

Even their earnings fluctuate every month. A report of the Bureau of Labor Statistics, a real estate agent income is $45,990 each year on average. One-tenth of agents earned a maximum of $23,000. But the 10% agent made up to $110,000.

How Real Estate Agents Get Paid

As it is discussed earlier real estate agents get paid by commission. But in some cases, they get paid by salary. The broker earned by the commission has a contract with a seller. To understand their payment procedure, we have to understand some factors first. So, have a glance at the below factors first:

Listing Agreement

A listing agreement is a deed or contract between a broker and the seller where both parties agreed upon a particular condition. Indeed, sellers hire a broker to act on behalf of him. Buyer also can hire to help him find a property. The party buyer or seller hires a broker and the listing agreement is formed with them. The agreement contains the conditions and rights of both parties.

What a broker can do or cannot do. In this contract, the payment of the broker also clearly stated. Commission of a broker is a percentage of the selling price of a property. It can be 5% or 10% whatever they demand. But there is always room for negotiation. While signing the agreement, the buyer or seller can negotiate with the broker.

Moreover, this kind of contract is also made with a salesperson or agent. The amount a broker gets from the client, a percentage also has to be given to the agent from that amount. We have discussed it in the following factors in detail. However, this payment is usually paid by the seller or buyer the person hires the broker.

Even it can be paid by both the seller and buyer mutually consent by the clients. Basically, a broker commission is added to the property price by the seller.

Sharing Commissions

The commissions are split among the middle agents. The commission can not be claimed by only one agent. There is also an agreement between the agent and the broker. What actually happens, an agent cannot work independently. They must work under any brokerage. The agreement and transaction everything occurred with a broker, not with an agent.

So, brokers share a percentage with their agent who helps to buy or sell the property of a client. When a brokerage appoints an agent, they also have an agreement with the broker. This agreement can be written or mutual. Depending on the agreement, an agent gets pied by the broker, not by the clients.For example, if a broker gets 10% of the commission, the agent may get 4%-5%. See the below list the commission is divided among the agents:

  • Clients Agent: The agent represents the client buyer or seller.
  • Clients Agent’s Broker: The agent’s broker for whom the agent works.
  • Listing agent: The agent who picked the listing from a client.
  • Listing broker: The agent works for the broker.


Brokers sometimes employ agents for salary. The agents start their career as fresh, mostly are employed for salary. In some cases, an agent gets a salary and commission both. Though this payment pattern depends on how many properties he sold and customer satisfaction.The online-based brokerage employs this type of salary paying agent. On the other hand, sellers hire or employ personal brokers or agents for salary. They pay an amount to the broker or agent for helping to close a transaction.

No Settlement No Payment

Usually, brokers earn a commission when a deal is closed means the deal is final for selling. If no deal or transaction is settled, the broker cannot ask for his commission.

However, in some cases, a broker can demand his commission. Seller is bound to pay his broker though the transaction is not settled. The different situation when a seller is bound to pay commission to his broker is given below:

  • If the seller changes his mind at the last time means isn’t willing to sell his property.
  • If the seller refused to sell his property.
  • If the spouse or other partner refused to execute the deed. (if the partner had signed in the agreement)
  • If the property has an uncorrected defect.
  • If the seller commits fraud regarding financial matters.
  • If the seller fails to deliver possession within a particular time to the buyer.
  • If the seller acts out of the condition of listing agreement or breach the agreement.
  • Cancel the transaction with the buyer with mutual consent.

How Many Homes Do Agents Sell Monthly?

Home can not be sold like oranges daily! Even it is hard enough for a new agent to sell one home within one month. If an agent cannot sell property, the brokerage also cannot make a profit. It is challenging for a new brokerage or agent to make money. Whereas the top class agents are selling 5+ homes monthly!

Most clients visit brokerage or talk to agents for information. They talk with multiple agents or brokers at the same time. They try to know the available property, prices etc. Then finally they choose any well-reputed brokerage for purchasing. So, new firms or agents hardly get the chance to sell.

Therefore, on average, a new agent sells only one house monthly. Furthermore, property selling is not as easy as dress selling! Many legal issues are related to the property. Many formalities also are done before and after selling the property.

So obviously it takes time to convince a client for purchasing and completing the deal. Even a deal close through many procedures.So, no one can not ensure how many houses can be sold by an agent monthly. They don’t have any fixed salary or commission as well. If a property is sold, they get their commission. If not, no commission for that month. So, it is easy to assume how sacrifices and hard work the top-class agent does in their entire career.

How Quickly One Can Generate First Commission

The more one can get a client and close a transaction, the faster he will get the commission. If you are a new license holder, barely you will find clients. So, you have to follow a few strategies to be well known. See the below points to get a quick commission:


This advertising for yourself only. Yes, it’s true! You have to make yourself common to people. So that they come to know that you are a license holder of a real estate agent. Advertise yourself to social media. Inform your friends, family and neighbors that you have started this career.The more people know yourself, the more clients you will get. Besides, for newly established brokerage, they need to advertise their firm as well on social media. Create an official website and share it on famous social media so people can know it.


First, get the license of a real estate agent. Only then you will be able to work as a professional agent. You can apply to brokerage or firms as well. No individual agent is allowed to work alone. They must work under authorized brokerage. People only trust and transact through a brokerage.Moreover, this license also gives you trusted clients. If you are under any reputed firm, people will be more willing to deal with you. Remember, an agent license and broker license is different.


It has no alternative! You must gain experience of communicating with clients, closing transactions, listing properties etc. Work as a team in the real estate business. You cannot work and complete a deal without other agent help.So, keep a good relationship with both of your boss, colleagues and clients. Then you can apply tricks to attract clients. Moreover, experienced agents are assent for any brokerage. So, be careful when appointing an agent.


Some do the job as full time or some part-time. Agents are paid by commission. But if you need money in urgency, you can be appointed as a salary paid agent. Some brokerages employ agents’ salary basis.

How Long It Take To Become A Real Estate Agent

Becoming a real estate agent, you need only to pass an exam to get a license. The license gives you permission to practice as an advisor. So, it depends on you how quickly you pass the exam. The exam is tough to pass.On the contrary, a broker license needs two years of experience as an agent. Then a candidate needs to pass an exam to get a broker license. So, it is almost three years to become a broker. Whatever the license you want to get, you must fulfill the requirement:

  • Age- 18 years.
  • Education- real estate related education.
  • Background and fingerprint.
  • Pre-licensing course.

Sitting on the exam, taking the pre-licensing course and applying for a license requires a good amount of money. Before that, you must have an educational background of real estate-related subjects. And after getting the license you need to find suitable brokerage to be employed(for agent only). So, you need to spend lots of money before earning a huge amount of commission.

Final Word

The career as a real estate agent deserves for those who love challenges, can do hard work and have patience. It is far better than any other little paying job. This career has luxury and reputation. However, to be successful as a brokerage or an agent, one must have efficiency.

Besides, knowledge and dedication needed for the affection of this profession. Then one can enjoy the work and earn more than expected. Apart from this, visit the websites of brokerage to see their payment method. How much do real estate agents make in their firm!

Leave a Reply

Your email address will not be published. Required fields are marked *