How Much Do Realtors Make?

Key takeaways

Realtors® help people navigate the process of buying, selling, or renting residential and commercial properties.

• Demand for real estate professionals is steady and will likely grow at 3 percent through 2034 [1].

• Location, experience, specialization, and work hours influence a Realtor's income.

• You can increase your earning potential by choosing a strong market, specializing in higher-value property types, and taking on more clients.

Learn more about how much you can earn as a Realtor. If you're ready to start preparing for a career in real estate, enroll in the Keller Williams Real Estate Agent Professional Certificate. You'll have the opportunity to learn fundamental sales strategies, analyze and interpret market data, and explore the role of a real estate agent in a transaction.

What is a Realtor?

A Realtor is a real estate agent or broker who is also a member of the National Association of Realtors (NAR). As real estate professionals, they help people or organizations buy, sell, and rent properties by sharing information about market conditions, researching and showing available properties, marketing properties, and more. In this role, you may provide the following services:

• Research available properties

• Research the market to help buyers and sellers set prices and budgets

• Help stage a home for photographs or an open house

• Create marketing materials to promote properties

• Present purchase offers and negotiate the terms of the sale

• Prepare documents

• Follow up to ensure all contract terms are met

Realtors typically focus on a broad area, such as residential or commercial real estate. Within those categories, you can specialize in sales, leasing, or property management. For example, you may work with first-time home buyers, luxury home sellers, corporate relocations, or shopping center investors. You can find Realtors in many industries, including residential housing, construction, land development, industrial properties, and more.

How much commission does a Realtor make on a $500,000 house?

A typical commission for a Realtor after the sale of a $500,000 house is around $6,250, assuming a total commission rate of 5 percent and a 50/50 commission split arrangement with the broker. The agent could receive $7,500 if they have a 60/40 split and $8,750 if they have a 70/30 split.

How much do Realtors make a year?

According to the US Bureau of Labor Statistics, the average salary for a real estate agent is $56,320 per year [1]. Zippia reports an average salary of $91,788, with average salaries ranging from $53,112 in Hawaii to $111,641 in New York [2].

What is the average real estate agent salary? 

According to various job listing sites, the average salary for real estate agents ranges from $56,320 to $103,000 per year. The chart below shows the variation in reported salaries.

*The Glassdoor figure includes base salary and additional pay, which may represent profit-sharing, commissions, bonuses, or other compensation.

Since most real estate agents work on commission, these numbers tell only part of the story. First, they include salaries of real estate agents who may not be members of the NAR. Second, real estate agents who work in markets with high sale prices typically earn more money than those in slower markets. Your take-home pay will likely fluctuate depending on local market conditions.

Real estate agent salaries by location: Top 5 highest-paying cities 

According to BLS, the metropolitan area with the highest paying real estate agents is Long Beach, New York, followed by cities in California, Washington, and the northeastern United States. The following chart highlights the average wage in these regions [2].

How much commission do Realtors make?

As a Realtor, you earn money through commissions from the properties your clients buy and sell. Your commission is calculated as a percentage of the property's sale price, which typically ranges between 5 and 6 percent [7]. The buyer's agent and seller's agent split this commission, and your brokerage will also keep a portion of your share. Your brokerage may offer a graduated commission split, which lets you keep a larger percentage of the commission if you meet performance goals.

Realtor expenses

You incur various expenses as part of your job, including licensing, transportation, and website development. Since you are technically a sole proprietor or independent contractor, even when working with a brokerage, many business expenses are your responsibility. The good news, though, is that you can deduct many of these expenses when it's time to do taxes.

Common Realtor expenses include: 

• Licensing fees

• Membership fees to NAR and other professional organizations

• Multiple listing service (MLS) dues

• Continuing education courses 

• Marketing and advertising efforts

• Transportation 

• Office equipment and supplies 

How much do Realtors make per sale? Factors that affect salary

Several factors can affect your salary as a Realtor, including location, experience, and education. Your motivation and the types of properties you work with also influence how much money you make. Understanding these factors can help you prepare for your career. 

Motivation 

Your motivation as a real estate agent can be a significant factor in your earnings since you set your hours and decide how many clients to take on. The real estate business allows for a flexible work schedule, enabling you to work as many or as few hours per week as you want. This flexibility means you can increase your potential income by working with more clients, showing more properties, and putting in more hours. For example, according to a McKissock Learning survey, an agent who works more than 50 hours per week earns three times as much as one who works fewer than 40 hours [8].

Education

While you only need a high school diploma or GED to enroll in real estate courses and pass a state licensing exam, further education can impact your earnings. Licensure requirements vary by state; in some states, a bachelor's degree can substitute for pre-licensing courses. More than half of all Realtors have a college degree, and advanced degrees may be necessary for specializations such as real estate development [9]. Specializing in areas like commercial properties or luxury real estate can increase your earning potential.

Experience

Experience and reputation significantly affect your salary. The longer you work as an agent, the more money you typically earn. According to NAR's 2025 Member Profile, agents with more experience report higher earnings [10]:

Industry

Specializing in certain areas of real estate can lead to higher earnings. Agents working in commercial real estate or focusing on high-paying specializations like luxury real estate or investments tend to earn more. According to the Bureau of Labor Statistics, the highest-paying industries for real estate agents include [11]: 

• Natural gas distribution: $138,470

• Oil and gas extraction: $127,750

• Electric power generation, transmission and distribution: $99,840

• Other amusement and recreation industries: $96,690

• Federal executive branch: $93,540

Location

Your location directly impacts your potential earnings due to varying housing markets. Realtors in cities with higher property values and living costs, such as New York or San Francisco, generally earn more than those in lower-cost areas. The top five highest-paying states for real estate agents are [11]:

• New York: $97,440

• Alaska: $85,800

• Massachusetts: $85,170

• Vermont: $82,630

• New Mexico: $79,790

Job outlook

According to BLS, the professions of real estate agents and sales brokers can expect a 3 percent growth rate from 2024 to 2034 [12]. BLS projects the industry to add an additional 46,300 job openings each year during this 10-year span [12]. A major factor fueling this moderate growth is growth in the housing market.

Read more: Real Estate Broker vs. Agent: Job Roles, Differences, and Salaries

Explore our free career resources for sales professionals

Exploring a career in real estate? Subscribe to our LinkedIn newsletter, Career Chat, to keep up with trends and insights. Then check out the following resources to continue learning:

• Watch on YouTube: How to Become a Real Estate Agent

• Read more: Setting your professional and development goals

• Bookmark this page: Marketing Terms: A to Z Glossary | Coursera

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