How Much Can You Make Selling Real Estate?
Have you ever asked yourself, how much can you make selling real estate? Whether you’re considering a career shift or are just curious about the earnings potential in this dynamic field, real estate can offer both financial rewards and lifestyle freedom. However, how much you earn as a real estate agent depends on several factors—location, commission rates, brokerage fees, experience, and how much effort you’re willing to put in.
This guide will help you understand exactly what to expect when it comes to earning potential in real estate. From rookie agents to top producers, we’ll break down the numbers, demystify commission structures, and explore income variables to give you a complete picture.
Real Estate Agent Earnings: The National Average
What Is the Typical Real Estate Salary?
The average real estate agent salary in the U.S. varies widely. According to national statistics:
- Entry-level agents (1–2 years): $45,000–$60,000/year
- Mid-level agents (3–5 years): $70,000–$100,000/year
- Top producers: $150,000–$500,000+ annually
Your location can significantly influence your earnings. Agents in large metropolitan areas or luxury markets tend to earn more than those in rural or slower markets.
How Do Real Estate Commissions Work?
Understanding Commission Structure
Real estate agents typically don’t earn a fixed salary. Instead, they work on commission, which is a percentage of the final sale price of a property.
Here’s how it usually breaks down:
- Standard commission: 5%–6% of the home’s sale price
- Split between buyer’s and seller’s agents: 50/50
- Brokerage split: Usually 30%–50% of your cut
Example:
- Sale price: $300,000
- 6% commission = $18,000
- Your share (as buyer’s or seller’s agent): $9,000
- After broker split (50%): You earn $4,500
Factors That Affect How Much You Can Make Selling Real Estate
1. Location
High-demand cities like Los Angeles, New York, or Miami offer bigger commissions, but also come with more competition and higher marketing costs.
2. Experience Level
Veteran agents close more deals, work with repeat clients, and command higher price points.
3. Number of Transactions
An agent earning small commissions on many homes can out-earn one selling a few expensive homes.
4. Brokerage Commission Split
Some brokerages take more than 50% of your commission, especially when they provide leads, office space, and marketing support.
5. Type of Real Estate
- Residential (most common)
- Commercial (higher payouts, fewer deals)
- Luxury (higher value, but more complex sales)
- Rental (smaller commissions but quicker deals)
How Much Do Top Real Estate Agents Make?
Real-World Earnings of High Performers
Top-producing real estate agents and brokers can earn $500,000+ per year, especially in hot markets or with luxury listings. They often scale by:
- Building a team
- Running marketing campaigns
- Handling multiple listings at once
- Networking with high-net-worth clients
Fun fact: Some real estate influencers and agents also earn side income through YouTube, coaching, and speaking gigs.
Part-Time vs Full-Time Agents
Is Real Estate Worth It as a Side Hustle?
Part-time agents may close 2–4 deals a year and make $10,000–$25,000 annually, depending on property values. This can be a great side hustle, especially if:
- You’re already connected to buyers/sellers
- You want a flexible income stream
- You enjoy working weekends or evenings
However, being a full-time agent offers more growth potential and professional reputation.
Common Expenses That Reduce Earnings
Your Take-Home Pay Isn’t 100%
Real estate agents are independent contractors, which means you’ll have business-related costs. These may include:
- MLS access fees
- Licensing and renewal
- Brokerage fees
- Marketing and advertising
- Website/CRM software
- Gas and vehicle maintenance
- Home staging and photography
Tip: Plan to invest $5,000–$10,000 per year in business operations, especially when starting out.
How Long Does It Take to Start Earning?
From Licensing to First Paycheck
Most new agents take 3–6 months to close their first deal. This depends on:
- Your personal network
- Time invested in prospecting
- The health of the housing market
Real estate is a long game—the more you build relationships and market yourself, the more deals you’ll close over time.
Real Estate Agent Income vs Other Careers
| Career | Average Annual Salary |
|---|---|
| Real Estate Agent (avg) | $80,000 |
| Nurse | $85,000 |
| High School Teacher | $65,000 |
| Accountant | $75,000 |
| Software Developer | $120,000 |
Real estate offers uncapped earning potential, but it also comes with fewer guarantees and more variability.
Tips to Maximize Real Estate Earnings
Proven Ways to Grow Your Income
- Specialize in luxury, commercial, or niche markets
- Use digital marketing to reach buyers and sellers
- Join a top-producing team to learn and grow
- Track your metrics – listings, calls, follow-ups
- Reinvest in yourself through education and coaching
The most successful agents treat real estate as a business, not just a job.
Frequently Asked Questions
How much can you make selling real estate in your first year?
New agents often make between $20,000 and $50,000, depending on how many homes they sell and their commission rate.
Can you make a living selling real estate part-time?
Yes, but it depends on your network and time commitment. Most part-timers supplement another job.
Do real estate agents get paid hourly?
No. Agents earn commissions only when a sale closes.
Conclusion
So, how much can you make selling real estate? The answer lies in your effort, location, strategy, and ability to close deals. While the average income is around $80,000 per year, your earnings could be significantly higher—or lower—depending on your approach.
If you’re ready to turn your passion for property into a lucrative business, real estate can be the perfect path. Ready to learn more? Subscribe to our newsletter or explore our step-by-step guide on becoming a real estate agent.
