The past three years brought severe changes to the real estate industry. The disruption in the job market made many people seek self-reliant ways of earning a living, making a contract, project, or commission-based work more appealing than ever. A career as a real estate agent gives you everything from flexibility to adequate income, making it attractive for professionals tired of their 9 to 5 jobs. On the other hand, the situation in the market makes many real estate agents seriously rethink their career paths. In April 2022, the industry observed a significant drop in interest caused by astronomical prices of houses and mortgages rising in rates and getting more challenging to take out. But will these factors refrain people from seeking new properties? Not. Despite the situation in the housing market, people move houses more often compared to past years. Reasons vary: some people search for tax-friendly locations and better job opportunities. Others must downgrade due to worse economic conditions or want to live closer to their families. The 2020 pandemic had its influence, too – remote workers’ addresses no longer depend on the employer’s office location.
How much do real estate agents earn?
Real estate agents’ salary is usually commission-based. It means working under a brokerage firm, one does not earn an average base wage but gets a percentage (typically 1-5% of the property listing price) of the closed deals. The commission is split between the agent and the broker.
We took a closer look at real estate agents’ salaries in 2023. Given the profession’s non-uniform character, it is hard to give an exact number – the earnings differ depending on the state, experience, network, and whether it’s a buyer’s or seller’s market. However, the national average real estate agent salary in 2023 has reached $95,873.
Real estate agent salary without commission
Typically, most real estate agents earn a low base salary. They live off commissions which call for thoughtfulness when planning professional and family expenses.
Real estate agent salary with commission
Agents earn a percentage of the sold listing, usually between 1 and 5% of the listing price. The commission is then divided between the agent and the broker they work for by a monthly flat fee or the agreed-upon percentage of a purchase. The salaries differ from state to state: recently, real estate agents from New York City enjoy the highest income ($120,668 per year), while the professionals from states like Louisiana, Kentucky, and Maine make less than the national average.
Real estate agent salary with a college degree
A college degree may help you earn more in many career paths, but the real estate business is not one of them. Your experience and top network-building skills enable you to increase your sales. The more people you know and the more transactions you close, the more clients you will get. Education is essential; the knowledge gained at your college, university, or license course will help you. Still, relationships and practical knowledge will put bread on the table. So how to build a network? Marketing knowledge and practical selling skills will help you reach more people and make good money. Check out Placester Marketing Academy, where you will find interviews, podcasts, articles, and ebooks to help you focus on the right matters and make more money by using your full potential!
How much can you earn being a part-time real estate agent?
Many people decide to get their real estate license and pursue a career in the industry part-time before they get into the business with both feet. According to the survey conveyed by The Close, part-time real estate professionals make $24,556 annually.
Highest-paid real estate agent salary
In 2023, top earners in the business will make around $137,181.
The average salary of a real estate agent
As in every other career, real estate agents’ salaries differ depending on the agreed commission split, the state they operate in, and the city. Below is the average income in the country’s 30 most-searched-for towns and conditions.
Real estate agent salary: Florida
The average salary in Florida in 2023 has been $93,942. Pembroke Pines, Kissimmee, and Delray Beach have been the highest-paying cities.
Real estate agent salary: Texas
Real estate agents in Texas can make the same as the national average, i.e. $89,923. In 2023, McKinney, Austin, and Dallas have been the best cities for lucrative operations.
Real estate agent salary: California
In 2023 agents in California made 9% more than the national average, i.e., $104,130. The highest earnings were reported in Rosemead, Santa Ana, and Long Beach.
Real estate agent salary: New York State
Agents in New York made $89,869 on average – 8% below the national average.
Real estate agent salary: Ohio
An average agent in Ohio makes $78,454 in 2023—cities like Dayton, Solon, and Toledo.
Real estate agent salary: Georgia
Agents in Georgia earn, on average, $98,823.
Real estate agent salary: Los Angeles
California’s most populated city Los Angeles is an excellent location for agents – they earn 10% more than the national average, i.e., $104,789 annually.
Real estate agent salary: Houston
Agents who worked in the Texan metropolis, Houston, saw an average income of $91,951 annually.
Real estate agent salary: Michigan
Agents operating in Michigan made, on average, $84,685.
Real estate agent salary: Illinois
The average annual salary in Chicago is $84,636. The highest-paying cities in 2023 have been Des Plaines and Springfield.
Real estate agent salary: New Jersey
New Jersey agents earn roughly $94,594. Those who closed their deals in Fort Lee and Morristown can make as much as $112,726.
Real estate agent salary: Chicago
Agents working in Illinois, Chicago can earn 8% more than the national average. As for 2023, the annual average is $87,761.
Real estate agent salary: Arizona
Arizona’s most lucrative cities were Gilbert, Goodyear, and Peoria. On average, agents working in this location earn $115,448.
Real estate agent salary: Maryland
The average salary in Maryland is $96,186. Agents who work in Rockville can expect to earn almost $102,272 per year.
Real estate agent salary: Alabama
Real estate agents in Alabama are paid $89,518 annually on average.
Real estate agent salary: Colorado
Agents in Colorado make around $99,383 on average. Those who operate in Arvada, Aurora, and Littleton will enjoy the highest salaries in the state.
Real estate agent salary: Pennsylvania
For Pennsylvania agents, average earnings align with the national average – around $84,420.
Real estate agent salary: Miami
The coastal metropolis of Miami allows agents to earn $107,768 on average.
Real estate agent salary: North Carolina
Agents who work in North Carolina make roughly $94,326 annually. The highest income is observed in cities: Huntersville, Raleigh, and Cary.
Real estate agent salary: Tennessee
In Tennessee, agents’ salaries revolve around $106,725 per year.
Real estate agent salary: Wisconsin
In Wisconsin, agents earn $71,373 per year on average. Milwaukee, Shawano, and Appleton are the cities with the highest income in the Wisconsin real estate industry.
Real estate agent salary: Kentucky
In 2023, Kentucky will be among the lowest-paying states for real estate agents. The average annual income is $79,554, which makes 17% below the national average.
Real estate agent salary: Louisiana
Similarly, agents in Louisiana report salaries below the national average: $85,385 annually.
Real estate agent salary: San Francisco
San Francisco allows agents to reach the national average. Annually, real estate agents are paid $91,223.
Real estate agent salary: San Antonio
San Antonio is the 5th best-paid city in Texas. Annual remuneration for agents operating there is $90,809 on average.
Real estate agent salary: Minnesota
The average annual salary in Minnesota amounts to $87,111 as of 2023.
Real estate agent salary: Oklahoma
Agents in Oklahoma make, on average, $91,598. The highest-paying cities are Edmond, Enid, and Woodward.
Real estate agent salary: Nebraska
Real estate agents in Nebraska’s earnings revolve around the national average, i.e. $73,578. Agents from Ceresco, Valparaiso, and Malcolm reported the highest salaries in the state.
Real estate agent salary: Mississippi
Mississippi is among the lowest-paying states in the real estate industry. The average in 2023 has been $91,398 on average.
Real estate agent salary: Boston
Agents who work in the capital of Massachusetts, Boston, can expect to make as much as $91,490 per year.
Take your income to the next level
It takes time, hard work, and consistency to be among the top sellers in a city or a state. There are, however, some steps you can take right now to increase your earnings and client portfolio.
First of all, build your brand. Social media such as Facebook, Instagram, and TikTok are your best buddies for reaching Millenials and Gen Z. Getting an education in using those platforms will help you be seen and present your listings to a broader audience and build your network.
Your online presence might be a game changer in your career, so it is worth having a professional, user-friendly website that will make it easier to reach you on the internet.
Estimating your earnings, remember to check your spending and taxes and set aside a cash buffer in case of unexpected expenses. Keeping track of the expenditure will help you eliminate unnecessary ones and direct your budget to activities that bring results.
