Average Real Estate Agent Income

Understanding Real Estate Agent Income

Real estate agents earn money by representing sellers or buyers of real estate properties. They facilitate the negotiation of contracts, coordinate inspections, and handle any paperwork involved in the selling or buying process. Real estate agents earn their income not only through commissions paid by either the seller or buyer of a property, but also through referral fees, advertising, and sales bonuses.

Factors Affecting Real Estate Agent Income

Real estate agents typically make an average of $47,810 per year, although this can be greatly impacted by a variety of factors including but not limited to:

  • Experience: Generally the more knowledgeable a real estate agent is in the industry, the more competitive their commission rate can be.
  • Location: Real estate agents living in expensive housing markets are more likely to ack up higher commissions due to higher price tags on the property.
  • Health of the Economy: When the economy is in a state of recession, real estate agents may struggle to find buyers, thus impacting their overall income.
  • Negotiations: Agents who excel in negotiations tend to receive higher commissions.
  • Work Style: Agents who are more organized and disciplined in their work are more likely to make more money.

Tips For Improving Real Estate Agent Income

Real Estate agents can take several steps to ensure they’re maximizing their income potential such as:

  • Broaden your network of potential buyers or sellers by using social media.
  • Promote yourself by creating informational videos and web content highlighting your services.
  • Personalize the agent-client relationship by offering assistance even after the sale or purchase is complete.
  • Prioritize customer service, as agents with higher ratings tend to make more money.
  • Collaborate with other agents to benefit from each other’s contacts and potential leads.


Real estate agent income can be greatly influenced by a wide set of factors. Knowing these factors and implementing proactive strategies can greatly improve a real estate agent’s financial success.