Average Earnings of a Real Estate Agent (+How to Earn More)
Investors, finance experts, and businesspeople all agree on one thing. Real estate is the best way to grow your wealth. That’s why becoming a real estate agent is a fantastic career choice—not only are you joining a massive industry that will never disappear, but you’re also putting yourself in a position to secure you (and your family’s) financial future. So what are the expected earnings of a real estate agent? It’s impossible to nail down an exact figure. Every situation is unique. But in this blogpost, we’ve broken down everything you need to know: the low end, the high end, the factors at play, and actionable tips to help you earn more no matter where you’re starting from. Let’s get into it!
What Earnings Can You Expect as a Real Estate Agent?
It’s difficult to predict exactly how much you’ll earn as a real estate agent. Your income depends on a range of factors, including:
- Brokerage commission splits
- The strength of your local housing market
- The level of competition in your area
- Your chosen niche and expertise
- Your experience and education level
- And, most importantly, the time and effort you invest
It’s worth noting that these figures represent averages and are before taxes. With enough effort and time, there’s no cap on your take-home pay. The U.S. Bureau of Labor Statistics (BLS) reports that the median annual salary for real estate agents is $54,300, while brokers earn a higher median of $63,060. However, other sources suggest that agents have the potential to earn much more. The Close, using data from platforms like Indeed, Glassdoor, and NAR, estimates the nationwide average real estate salary at $90,506. But even these averages mask the wide range of potential earnings. According to the National Association of Realtors (NAR) Member Profile Report, 21% of realtors earn less than $10,000 annually, while at least 20% earn over $150,000. 
The Low End of Real Estate Earnings
The two main factors influencing lower real estate agents earnings are:
- Location
- Experience
According to The Close, Illinois agents reported the lowest average income in the US at $30,270 annually. The National Association of Realtors (NAR) Member Profile Report further highlights the disparity in terms of experience. Realtors with two years or less experience had a median gross income of just $8,100 in 2023, down from $9,600 in 2022. These less experienced agents accounted for 62% of those earning under $10,000 annually.
The High End of Real Estate Earnings
At the opposite end of the spectrum, real estate agents in certain states and with more experience can earn impressive incomes. According to The Close, six states boast the highest average realtor salaries:
- Maine ($102,225)
- Maryland ($102,167)
- Virginia ($101,340)
- Kansas ($108,620)
- Arizona ($102,699)
- California ($106,957)
The NAR Member Profile Report also shows that Realtors with 16 or more years of experience had a median gross income of $92,500 in 2023, up from $80,700 the previous year. These experienced professionals also represent the largest group of agents earning over $150,000 annually. 
Salaries Vs Commissions
Unlike in other industries, the best-paid real estate agents typically earn their income through commissions. Most real estate agents work under brokers, and commissions from property sales are paid directly to the broker. The broker then splits the commission with the agent based on their agreement. However, there are a few variations in how agents are compensated:
- Fixed Salary: In some cases, agents may work on a fixed salary, particularly if they are employed by larger organizations.
- Salary Plus Bonuses: Some agents, such as those at Redfin, earn a salary along with bonuses based on the price of each home sale they close.
- Commission-Based: Many agents, especially independent contractors, their own brokers, or real estate investors, earn purely through commissions on property sales.
In 2023, the National Association of Realtors (NAR) reported that real estate agents were compensated in various ways:
- 35% worked under a fixed commission split (less than 100%).
- 20% earned through a graduated commission split (increasing with productivity).
- 20% had a capped commission split (rising to 100% after a predetermined threshold).
How Real Estate Commissions Work
Before getting into ways to increase your real estate commissions, let’s go over how they work. A real estate commission is usually split four ways:
- Listing agent: the agent who got the seller lead.
- Listing broker: the broker who employs the listing agent (could be the same person as the listing agent).
- Buyer's agent: the agent representing the buyer.
- Buyer's agent's broker: the broker who employs the buyer's agent (could be the same person as the buyer’s agent).
How Brokerage Splits Work
Real estate commissions are not split equally. How much each party receives depends on the deal structure and the agreements in place. Every brokerage has its own policies on commission splits, and these can significantly impact how much agents take home. For example, some listing brokerages may retain a larger portion of the commission, while others may offer more favorable splits to attract agents. The rise of online brokerages has further skewed these numbers. Digital-first models often offer agents lower overhead costs and better splits compared to traditional brick-and-mortar brokerages, enabling agents to earn more from the same number of transactions. Ultimately, not all deals are created equal. The way commissions are structured can mean that agents in one brokerage earn significantly more—or less—than agents in another, even if they close the same number of sales. As an agent, understanding how these splits work can help you make more informed decisions about where to work, how to structure your deals, and how to earn more.
Example of a Real Estate Commission Payout
Here’s an example of how real estate agents might be paid commissions. Imagine an agent lists a property for $300,000 with a commission rate of 5%. This results in a total commission of $15,000. The house sells for the asking price, and the commission is split evenly between the listing broker and the buyer’s agent’s broker, with each receiving $7,500 ($300,000 sales price × 0.05 commission ÷ 2). The brokers divide their share with their respective agents based on their agreed-upon split. A common split might give 70% to the agent and 30% to the broker, but this can vary depending on experience, productivity, or brokerage policies. For this example, let’s imagine a 70/30 split:
- The listing agent and buyer’s agent each receive $5,250 ($7,500 × 0.7)
- Each broker keeps $2,250 ($7,500 × 0.3)
The final commission breakdown would look like this:
- Listing agent: $5,250
- Listing broker: $2,250
- Buyer’s agent: $5,250
- Buyer’s agent’s broker: $2,250
NOTE: We’re not saying this is typical or ideal. It’s just a way of demonstrating how commissions and brokerage splits work.
Average Real Estate Agent Earnings Per State in the USA
Below, we’ve gathered data on real estate earnings by state. The data (from The Close) offers insights into how average salaries vary across the United States. These figures highlight the significant variation in earnings across states, with some offering higher potential for real estate agents due to factors like market conditions and competition (or lack of). Here it si:
- Alabama: $98,150.25
- Alaska: $76,242.50
- Arizona: $102,698.75
- Arkansas: $89,801.25
- California: $106,957.00
- Colorado: $94,182.25
- Connecticut: $96,033.25
- Delaware: $80,745.50
- Florida: $91,246.50
- Georgia: $93,606.25
- Hawaii: $85,583.00
- Idaho: $93,483.50
- Illinois: $95,723.75
- Indiana: $91,126.50
- Iowa: $95,278.25
- Kansas: $108,620.25
- Kentucky: $83,031.00
- Louisiana: $87,993.25
- Maine: $102,254.75
- Maryland: $102,167.00
- Massachusetts: $94,691.00
- Michigan: $86,831.50
- Minnesota: $95,679.50
- Mississippi: $80,879.50
- Missouri: $95,388.50
- Montana: $71,901.00
- Nebraska: $88,701.25
- Nevada: $99,894.75
- New Hampshire: $79,094.75
- New Jersey: $100,636.25
- New Mexico: $86,782.50
- New York: $99,324.00
- North Carolina: $94,772.25
- North Dakota: $76,281.00
- Ohio: $86,996.25
- Oklahoma: $95,972.00
- Oregon: $92,119.25
- Pennsylvania: $92,305.25
- Rhode Island: $78,612.50
- South Carolina: $93,062.75
- South Dakota: $75,619.00
- Tennessee: $91,706.50
- Texas: $92,151.00
- Utah: $88,176.00
- Vermont: $81,044.00
- Virginia: $101,339.75
- Washington: $100,118.50
- West Virginia: $71,983.00
- Wisconsin: $84,161.75
- Wyoming: $74,134.75
3 Ways to Increase Your Earnings as a Real Estate Agent?
Let’s imagine you’re a real estate agent working in one of these areas. At this moment, changing states or negotiating a better commission structure isn’t an option. So what can you do to increase your earnings without making a major career shift? Here are three strategies to help you grow your income right where you are:
1. Get Referrals Through Positive Client Experiences
A strong relationship with your clients can lead to more referrals and repeat business. Go the extra mile to ensure your clients have a great experience—be responsive, provide valuable insights, and guide them through every step of the process. Happy clients are more likely to recommend you to friends and family, turning your existing deals into a steady pipeline of future opportunities. This works both whether you’re acting as a buyer’s agent or listing agent.
2. Hone Your Skills (aka Close More Deals)
Your skills are your most powerful assets as a real estate agent. Sharpening your negotiation and communication strategies improves your ability to close deals and boost your commissions. Strong negotiation skills can help you secure better terms for your clients—and by extension, larger payouts for yourself. Additionally, improving your marketing, time management, and networking skills can create more opportunities to grow your client base and reputation.
3. Get More Seller Leads
The more seller leads you generate the more opportunities you have to close deals and increase your income. Your broker or boss will appreciate you for it. Simple, but not easy. Focus on proven methods like direct mail campaigns, networking, and social media advertising to reach potential sellers. By positioning yourself as a trusted and proactive agent, you’ll attract more listings, giving you a greater chance to succeed in competitive markets. 
Secret Tip: Use Direct Mail to Get More Seller Leads
In a world filled with spam emails and impersonal advertising, direct mail is a “cheat code” for real estate agents to generate quality seller leads. At BallPoint Marketing, we’ve perfected the art of direct mail. Our handwritten mailers, crafted using cutting-edge robotics and AI technology, mimic the look and feel of a real handwritten letter. These cards are designed to resonate with sellers, making it more likely they’ll read and respond. On average, BallPoint Marketing clients report a cost per deal that’s 2.3x cheaper than other methods. If you’re looking to increase your seller leads and earn more commissions, see below.
Why the Greeting Letter Is Our #1 Choice for Agents
If your mail gets trashed before it’s opened, you’ve already lost the game. That’s why BallPoint Marketing created the Greeting Letter, a 5x7” card designed to ensure your message lands in the “Open” pile instead of the trash. Here’s why it works:
- Premium Design: Our Greeting Letters are made with high-quality #67 cardstock, giving them the look and feel of a birthday invitation. People are less likely to throw away something that feels personal and special.
- Handwritten Appeal: Written with real blue pens (not printed fonts), the handwriting even includes slight smudges to mimic the authenticity of a human touch.
- Persuasive Copy: The body of the card includes blue-pen handwriting with a compelling message crafted by expert real estate copywriters, along with your URL for easy follow-up.
- Local Touch: Using local postmarks boosts open rates and reinforces the idea that you’re a nearby, trustworthy agent who understands the market.
Click here to check out our current range of Greeting Letters.
