Has it ever crossed your mind, “How much do real estate agents make per sale?” The answer is not one-size-fits-all, as it depends on several factors, including the home’s price, the local market, and the commission rate. But there is one thing you can control: how many good clients you bring in.
The more serious buyers and motivated sellers you work with, the more chances you have of closing profitable deals. Strong real estate lead generation ideas help keep your pipeline full. When you use smart ways to find new clients, you can close deals more often and grow your income over time. In this article, we discuss how much real estate agents make and how they can increase their salaries. Read on to find out how to turn your next ordinary closing into something special.
How Much Commission Do Real Estate Agents Earn?
Real estate agent commission usually comes from a percentage of the home’s sale price. In many markets, the total commission is around 5-6%. That amount is first split between the listing agent’s brokerage and the buyer’s agent’s brokerage, typically 50/50.
That said, you do not keep that full half. Your share is then split again between you and your brokerage. As a new agent, your split might be close to 50/50 or 60/40. If your side of the deal is $9,000, you might keep $4,500 to $5,400 after expenses and taxes.
How much you actually earn depends on how many homes you sell in a year, your local market, and your brokerage model. Some brokerages offer higher commission splits but charge monthly or transaction fees. Others pay a lower percentage to the agent but cover more office costs and training, which can be helpful when you are just starting.
How Much Do Real Estate Agents Make Per Hour, Day, Month, and Year?
Real estate agents do not make money by the hour; they profit from commission from the houses they sell. However, there’s a direct relationship between how many hours you work and how much money you make. Real estate agents in the U.S. usually earn between $23 and $51 per hour. The top agents can make about $51 an hour, which is around $105,000 a year. New agents often start at a lower rate, typically between $23 and $30 per hour. As they gain experience and acquire more clients, their hourly rate can increase significantly.
How Do Real Estate Agents Earn Money?
In this section, you will see the main forces that can increase your income as a real estate agent. You can use them as a checklist to find your next income boost.
1. Number of Closed Deals
A real estate agent’s pay depends on how many homes they sell. Because your income is commission-based, you only get paid when a sale is completed, so every closing directly affects your yearly pay. That means every closing helps youmake more money that year. Many agents sell about 4 to 6 homes a year. Each sale adds to their total pay. Newer agents may start slowly as they learn to sell real estate effectively, build their network, and convert more leads into signed contracts.
2. Income Growth Over Time & Experience
As a real estate agent gains experience, they typically earn more. This increase in income results from improved performance and trust. It can take time to build a client list, secure referrals, and determine what truly helps a home sell. Experienced agents may also get a better commission split and work with richer clients. Over time, this can make the average real estate agent’s salary much higher than that of new agents at the start.
- Beginner agents typically sell 1–3 homes per year, so their salaries tend to remain modest initially.
- With a few years of experience, agents move into the 5–10 deals range and see clear income growth.
- Experienced agents closing 11–14 homes earn much more.
- Advanced agents selling 15+ homes can reach strong six-figure earnings.
3. Building a Network that Brings You More Deals
Another major factor behind how much money real estate agents make is the strength of their relationships. Agents who stay in touch with past clients, local business owners, and other professionals create a steady pipeline of warm leads. When you build an email list of people who already know and trust you, every newsletter or market update becomes a chance to win your next deal. Happy clients send referrals, which cost nothing to acquire but can generate thousands of dollars in commission. Over time, a strong network can outperform almost any paid marketing strategy.
4. Increase Earnings Potential by Location
Where an agent works also plays a significant role in how much money they earn each year. Those in major cities or high-end suburbs often earn more than agents in smaller towns because home prices are higher. For example, a 3% commission on a $500,000 home brings in far more than the same rate on a $200,000 property.
How to Earn More Money As a Real Estate Agent?
Here are some additional strategies to earn more money as a real estate agent:
1. Do Short Sales
Specialising in short sales can be a smart way to increase real estate agents’ earnings over time. Many homeowners get stuck when buyers’ offers are insufficient to pay off their home loan, so the deal falls apart, and the listing expires.
A real estate agent who knows how to work with banks can step in and save the situation. The agent talks to the lender, asks them to accept a lower offer, and then relists the home as a short sale. This approach gives the property a second chance to sell rather than be forgotten.
Bank approval can take several weeks or even months, so short sales require patience and effective communication. But each time a short sale closes, the agent turns a “dead” listing into a real paycheck. He gains new referrals and builds a strong reputation as the go-to problem solver for tough deals.
2. Use brandID
brandID helps real estate agents turn scattered social media clicks into real leads by acting as one of the best link-in-bio tools for property marketing. With brandID, every tap on your Instagram or TikTok bio directs to a single, clean landing page that showcases your newest listings, a contact form, lead magnets, and key resources in one place.
On your brandID page, buyers and sellers can quickly browse property photos, pricing, and details. Then, they can choose how to connect with you, whether that is a call, a message, or an online meeting. Because your brandID landing page is easy to update, mobile-friendly, and built to convert, it guides visitors from curiosity to action. It also helps you capture more email subscribers and warm leads from the online traffic you already get.
Key brandID Features for Real Estate Agents
- Realtor-focused link in bio designing templates
- Easy and quick drag and drop landing page builder at zero cost
- Showcase your listings with photos, carousels, and videos, along with adding links to them
- Multiple contact options and lead capture forms
- Built-in analytics with GA4 and Facebook Pixel support
- Central hub for links to key listings, pages, website, and social profiles
3. Make Broker Price Opinions (BPOs)
Broker Price Opinion (BPO) makers can earn extra income as agents. Banks and lenders pay licensed agents a flat fee to research recent sales, market trends, and property details, and deliver a quick value report. In addition to commissions, BPOs can generate cash flow.
4. Sell Commercial Real Estate
Another way to increase your income is to move into commercial real estate. Instead of getting paid only when a property sells, you can earn ongoing income from leases, since many commercial deals include recurring commission or fee structures. To succeed, study the local commercial market, learn the basics, and update your website, social profiles, and business cards to clearly promote your commercial expertise.
5. Become a Realtor
A realtor is a real estate agent who is a member of the National Association of Realtors (NAR) and follows its strict code of ethics. That extra layer of trust can influence how much realtors earn, as clients often perceive them as being more professional and reliable. By becoming a realtor, you can boost your credibility, expand your referral network, and turn more leads into closed deals over time.
6. Boost Educational Background & Certifications
Another way real estate agents can increase their income is by learning more and earning specialized certifications. These are additional classes and training focused on specific types of homes or clients.
For example, an agent can specialize in luxury homes, helping seniors, or working with commercial properties like stores and offices. This shows that the agent has more profound knowledge in that area.
When buyers and sellers see you as a true expert, they are more likely to hire you, listen to your advice, and send their friends and family to you. This can lead to bigger deals, more sales, and a higher income over time.
Real Estate Agent Salary by Location In the US
If you have ever wondered how much real estate agents make a year in different parts of the country, this section gives you a clear snapshot. Below you will see average earnings by state, so you can quickly compare markets, spot high-income areas, and decide where to focus your efforts.
| State | Average Real Estate Agent Salary |
| Alabama | $67,274 |
| Alaska | $81,170 |
| Arizona | $79,607 |
| Arkansas | $64,446 |
| California | $90,804 |
| Colorado | $73,874 |
| Connecticut | $78,026 |
| Delaware | $90,329 |
| Florida | $67,204 |
| Georgia | $78,256 |
| Hawaii | $82,569 |
| Idaho | $78,457 |
| Illinois | $76,653 |
| Indiana | $79,632 |
| Iowa | $78,447 |
| Kansas | $69,901 |
| Kentucky | $65,465 |
| Louisiana | $67,661 |
| Maine | $82,699 |
| Maryland | $91,525 |
| Massachusetts | $86,206 |
| Michigan | $70,688 |
| Minnesota | $81,147 |
| Mississippi | $72,704 |
| Missouri | $70,307 |
| Montana | $76,373 |
| Nebraska | $82,648 |
| Nevada | $85,822 |
| New Hampshire | $78,516 |
| New Jersey | $83,373 |
| New Mexico | $75,542 |
| New York | $93,951 |
| North Carolina | $65,140 |
| North Dakota | $78,747 |
| Ohio | $75,394 |
| Oklahoma | $86,655 |
| Oregon | $83,504 |
| Pennsylvania | $78,601 |
| Rhode Island | $78,874 |
| South Carolina | $71,344 |
| South Dakota | $78,806 |
| Tennessee | $73,794 |
| Texas | $81,127 |
| Utah | $73,886 |
| Vermont | $84,429 |
| Virginia | $91,207 |
| Washington | $98,516 |
| West Virginia | $67,726 |
| Wisconsin | $83,446 |
| Wyoming | $80,261 |
Conclusion
In the end, there is no single answer to how much money real estate agents make per sale. Their income depends on factors such as commission rates, home prices, experience, where they work, and how many homes they help buy or sell each year.
As you move from a new agent to an experienced one, your earnings can grow. You can take more classes, earn special certifications, and focus on certain types of clients or properties. You can also build a strong network of past clients and local contacts who send you referrals. Extra strategies can help you earn even more. For example, you can learn short sales, do BPO work, handle commercial properties, or become a Realtor. Each of these can open new ways to earn more money.
To turn more online visitors into real clients, you also need a clear and simple online presence. With brandID, you can create a responsive, professionally designed landing page and display all your listings in one organized, eye-catching hub. Create your free brandID page now to make it easier for buyers and sellers to see your listings and easily reach out to you.
FAQs
In California, real estate agents often earn more than in other states. Many full-time real estateagents earn about $85,000 to $200,000 a year. Many surveys report salaries ranging from $110,000 to $120,000. In expensive markets such as Los Angeles and San Francisco, top agents can earn $300,000 to $500,000. Some of the very best teams can even make more than $1 million.
In the U.S., commercial real estate agents typically earn $85,000 to $200,000 per year. Many make around $100,000 to $110,000. New agents may start at $40,000-$60,000. Agents who do really well, especially in big cities or selling expensive properties, can make more than $250,000 a year. A few top agents can even earn over $1 million.
On average, top real estate agents make around $85K to $130K per year, but some top agents can reach even seven figures. Their income often grows as they master negotiation and attract steady, high-value clients.
Real estate agents earn the most in real estate markets with high home prices. Top earning states often include:
– New York
– California
– Massachusetts
– Texas
– Florida
– Colorado
– Washington
Areas like Los Angeles, San Francisco, New York City, and Napa or Orange County also offer very high income potential, but with higher living costs and intense competition.
