Point2 Agent Blog: Online Marketing Tips for Real Estate

How Much Do Real Estate Agents Make?

It’s common question for consumers, students and real estate professionals: How much do real estate agents make?

The answer can vary wildly depending on where you’re working, how many hours a week and with whom. We’ve created an infographic to explain some of the variables below. Whether you’re an agent, a potential buyer or just someone thinking about getting into the real estate business, we think you’ll find it useful.

And if you’re working with clients who are asking you questions about your commission, don’t hesitate to share this with them! They might be shocked at the percentage of the total commission you actually take home.

How Much Do Agents Make How Much Do Real Estate Agents Make?

Please include attribution to Point2.com if you share this graphic.

Real estate agents often have a much wider range of expenses than a home buyer or seller imagines. One way to make sure you’re getting the most exposure for your business and your listings without spending a fortune is to use the online marketing tools provided by Point2 Agent. You get listing syndication, social media tools, email campaigns, property sites and a killer real estate agent website all in one place!

If you’re not already a member, you can start a 30-day free trial right now. That helps cut down your out-of-pocket costs for the month, right?

Is this estimate of a real estate agent’s pay more or less than you thought it would be?

Check out our other infographics:
5 Bad Ideas for Real Estate Websites
Summer Home Staging Tips
How to Become a Real Estate Agent

33 Responses to “How Much Do Real Estate Agents Make?”

  1. Lance Mohr says:

    Very nice and informative post – for consumers.

  2. Thanks for the support in giving the real facts about real estate commission.

  3. Would also add Errors and Omission insurance, which is also a significant expense–and something typically not offered by FSBO’s.

  4. Don’t forget web advertising as an expense…I would appreciate knowing where you pulled the salary information from – as an agent, I would like to see the breakout on salary ranges. Not necessarily for the public but as an agent, I’d like to know how I stack up on a national and regional scale.

  5. Also by the time the transaction closes it could be 2-3 months from the time the offer is signed by both parties to receive your commission.

  6. Using the word ‘salary’ implies that agents are employees when in fact they are independent contractors. Agents do not receive a salary or benefits, they are strictly on commission.

    • Geneva Ives says:

      Great point! We completely agree. Thanks for reading.

      • Kari Walker says:

        An explanation of what commission only means would be a good addition. I actually had someone come into my office and comment on all the overtime that was being made because there were so many people that after 5pm.
        The public does not relate to having to have the money to live on between paychecks. Most agents do not close 2-3 transactions a month either.
        Great article, thank you .

  7. Lisa Webber says:

    I love the infographic! I saw where you said to share with our clients and I just posted the graphic to my blog. Is that ok or should I take it down? I re-read the paragraph and it doesn’t say we can use it in our blog so I wanted to double check as I would never want to use something without permission. Good stuff!

    • Geneva Ives says:

      Hi Lisa, thank you for your kind words. You are absolutely fine sharing the infographic on your blog – knowledge is meant to be shared! We do appreciate if you link back to the original post, though. Have a great day :)

  8. This is an informative info graphic but you should have shown the experienced agent as the listing agent which is more usually the case. Would like an update on the average agent units per year. In the scenario above you would be doing 6-8 deals a year. I strive for 30 units each year and am well above the 50th percentile in my market, which by the way is less than the average agent in the info graphic. The 80/20 rule which is more like 90/10 in this business makes average calcs less useable for understanding. These metrics are part of my marketing strategy and useful in educating consumers just as I feel your chart has done.

    Thanks

  9. Steve says:

    Another significant expense all agents experience is “lost time”. By this, I mean the time we spend with a buyer who ends up never buying. Of course, if we’re experienced agents, we can mitigate this somewhat by asking the right questions in the beginning. But, it does happen to all of us. That’s time we’ve invested that may bring a return in the future, but many times does not.

  10. Karen Rice says:

    I would also add a Franchise Fee in there – if you work for a franchise (REMAX excepted, I think) you probably pay a 6-8% Franchise fee that’s taken off the top before your broker split. For Weichert it’s 8%.

    • Lisa Webber says:

      The difference with RE/MAX is we have to pay every month whether we sell anything or not. There is a “desk” fee, some goes to RE/MAX International for advertising. It’s pretty hefty, usually around $1200-$1500 per month depending upon the office. We lost a lot of agents to other companies during the downturn because of this. Most others you just split when you sell.

  11. Dan Desmond says:

    The point is that the seller paid $18000 which is $5000 to $6000 more than a $200,000 seller. For what? How about a $400,000 seller? Where is the pre-listing disclosure. The simple problem is too many agents — you broker is the problem. I wrote a letter on Jan 29th to the NJ Legislature and Real Estate Commission outlining the disclosure needed. See it at http://www.dandesmond.blogspot.com.

  12. You might also add in the expense of lost listings, local vs national MLS fees, lost and damage signage, and updating annual specialty designations.

  13. I think this is a very interesting stuff for us to know — the RE Agents.

    I appreciate you for sharing this important information here.

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  15. Sandy says:

    The infographic looked great until you start reading the words – and after reading all the comments, you should really redo it. The biggie is ‘salary’ which real estate agents DO NOT receive. As a professional, sending out bad/incorrect info to the public is why the industry gets a bad name.

  16. […] For a look at the financial side of this conversation, see How Much Do Real Estate Agents Make? […]

  17. Toni says:

    In Puerto Rico sellers asked for a discount and agents went down to 4% some independant agents were selling for a 2%. Might as well look for another job, right? The article was great, I posted it.

  18. […] income for “full-time, full-year” real estate agents was just under $50,000. In the US, a more recent figure was $38,067 median salary for real estate agents. That means, of course, that half of all agents […]

  19. JC Holder says:

    Maybe a better article would what does an agent actually do. Also, if you did some research, you’d likely find the average commission is less than 6% nationwide (commissions are not fixed as they are negotiable). In addition, not every listing sells, not every buyer buys, and not every deal closes!

  20. Nina says:

    5/6%? Who gets that much? Not here! Why does everyone think that?

  21. Libby Wampole says:

    What about income taxes ?

  22. Gail Spinn says:

    Thank you for this informative article. We Realtors also purchase closing gifts for our clients and from time to time have to give up a little of our commission for a sale to go through (this is not a regular practice). It is good to know though and a valuable tool because most people think all of the percentage goes to the agent. Keep up the great data!

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