The Not-So-Average Salary of a Real Estate Agent
How much does it take to make it as a real estate agent? What are the average salaries in your area, and what are the salaries of the top agents? You can learn more about that here, with this helpful guide to the not-so-average salary of a real estate agent.
What is an Average Annual Salary?
The average annual salary for a real estate agent is approximately $41,600 per year, as of July 2017. That means that half of all real estate agents earn less than $41,600 annually and half earn more. This is pretty much in line with Bureau of Labor Statistics (BLS) data from May 2016, which showed that the median annual salary for sales agents and brokers was $43,590 annually.
How Much Does a Realtor Earn Per Year?
A real estate agent can earn anywhere from $20,000 to more than $100,000 a year. The average annual salary for a Realtor is just under $52,000 per year, with some earning up to $67,000 annually.
Realtors earn anywhere from $27,000 to $90,000 per year. This variance is based on factors such as location and level of experience. Experienced agents in larger metropolitan areas tend to make more money than their colleagues in smaller towns or rural areas. For instance, according to Forbes , Realtors who sell homes in San Jose, California will earn over $90,000 per year on average.
How Much Do Realtors Make Each Month?
We all know that if you’re selling your home, having an agent is critical. But what are they actually getting paid to do? It turns out that real estate agents generally charge around 5% of your home’s sales price as commission. So, for example, if you sell your $400k home for $400k, you should expect to pay about $20k in commission to your realtor.
Minimum Realtor Salaries by State
As you can see, when it comes to real estate agents, much depends on where you live. This makes sense when you consider that real estate commission varies by state and is largely dependent on what’s happening in an area’s housing market. In places like California and New York, high salaries for realtors may be offset by higher living costs; in states like Montana and Alabama, realtors typically earn less but enjoy low housing prices and low cost of living.