Looking for a career that brings you huge income with an easy schedule? Then being a realtor is the career to go with. A realtor in his beginner phase, which is 1–5 years can make as much as other professionals make their whole life.

Yes… you heard it right!

It’s THAT fruitful!

The median salary of a realtor in 2016 was estimated to be around $44,000.00, which is quite mind boggling.

But this is just an estimate.

An estimate — that is based on the combination of salaries of both; beginners as well as experienced realtors.

Moreover, these figures are inclined towards the income of residential realtors — the most dominant category of real estate. The other category is commercial realtors. In this article, you will learn about:

  • How Much a Typical Realtor Make?
  • How Much Do Residential Realtors Make Per Year?
  • How Much Commercial Realtors Make?
  • How Much Do Commercial Realtors Make Per Year?
  • How Much Experienced Commercial Realtors Make?
  • What Are The Best Cities To Become A Realtor?
  • How Do Realtors Get Paid?
  • How Much Does a Listing Agent Make?
  • How Much Does a Realtor Make In First Year?
  • How To Make $100,000 Being a Realtor In Your First Year:

So let’s get started.

How Much a Typical Realtor Make?

A typical realtor makes around $44,000.00 per year. However, this does not represent the true potential of the industry at all. There are different factors that determine how much do a typical realtor make. Such as the number of closed deals and number of hours they work each year.

A realtor who works around 60 hours a week can earn as much as $90k a year.

However, this does not apply on each realtor.

Some realtors work nowhere close to 60 hours and still manage to make over $100k, and it all comes down to their experience and an incredible skill set.

How Much Do Residential Realtors Make Per Year?

As mentioned above, the more experience you have, the more money you are likely to make. The following breakdown will help you understand how much do residential realtors earn per year.

  • A realtor during his first five years is supposed to be in his initial phase. His annual income is relatively lower than the experienced realtors. He earns around $25,000-$44,000.
  • The next phase — which is 5–10 years is the mid career phases. And a typical realtor in this phase can earn as much as $60,000.00.
  • An agent with the experience of 10–20 years is the most experience agent and he tops the list of highest earners in the residential industry. His annual income can go as much as $100,000.00.

These are just the stats of residential realtors, which are quite incredible. But the stats of commercial realtors are even more incredible.

Their amount of money they earn makes their residential counterparts’ income look like just a small number.

Here is the income breakdown of commercial realtors.

How Much Commercial Realtors Make?

The scale of commercial realtors’ salaries goes from $36,000-$176,000, with a median income of $63,000.

All the bonuses and commissions are included.

Why commercial realtors earn that much?

Because the properties involved in this category are worth much more than residential ones. These agents get to transfer property rights of shopping malls, commercial plazas, and retail stores from one party to another.

As the transactions involve huge money, the trust issues grow bigger. And the clients only prefer to work with the realtors that have the experience of transacting commercial properties.

However, just like salaries of residential realtors, the salaries of commercial realtors depend on the experience too.

Here is the breakdown of how much do commercial realtors make per year based on their experience.

How Much Experienced Commercial Realtors Make?

  • Average commercial realtor salary in his first 5 years is around $60,000.00.
  • In the next phase, which is 5–10 years, a commercial realtor can make as much as $105k.
  • A commercial agent who has the experience of 10–20 years earns around $120 or more.

What Are The Best Cities To Become A Realtor?

Following are the top 5 paying cities for realtors:

  • Being realtor in NY is a lucky career as it tops the list of highest earners in real estate with $100,000 annual wages.
  • Hawaii comes 2nd in the list as realtors in Hawaii earn $83,000 per year.
  • The 3rd city in this list is Massachusetts. The realtors there make around $78,000 per year.
  • 4th one is Illinois $76,800 yearly wage for its Realtors.
  • The last of the top 5 cities is Colorado. The average income of being a realtor in Colorado is $76,590.

How Do Realtors Get Paid?

A typical realtor get paid in terms of commission.

Are you wondering what is a commission?

“Commission is the amount of fee that a realtor charges for providing his services

In selling/buying a house.”

Realtors only get paid when they help someone buy a house, or sell one. The commission is evenly split between a seller’s agent and buyer’s agent.

The average commission rate in the USA is between 4%-6%. However, most agents work for just 3% commission per sale.

When a sale is closed, it is the seller’s responsibility to pay commission to both buyer’s agent and the seller’s agent.

There are several factors that determine how much realtors make per sale.

  • A realtor working for a firm must pay 40–60% to that firm on every closed deal.
  • Even if a realtor does not work for a firm, he is most likely to be working for a broker how gets a certain share from each sale.
  • If a realtor is self-employed, he can keep all the commission.

How Much A Buyer’s Agent Make?

There is not an exact figure as to much a buyer’s agent makes. As I mentioned earlier, the only way to make money in real estate is the commission per sale.

The more sales you close, the more money you are going to make.

The basic job of a buyer’s agent is to sell houses to buyers and earn commissions on the sold houses.

The example I am going to give will make it clearer as to how much a buyer’s agent make.

Let’s say, a buyer’s agent earns 3% commission per year. If he sells 20 houses a year, with average house price of $175,000.00, the amount he is going to make per year will be:

$175,000 x 20 (number of houses) = $3,500,000

$3,500,000 x 0.3 (commission rate) = 1,050,000

$1,050,000 is the total amount of commission he makes per year.

If the agent works for a broker for 30%-70% split, then ($1,050,000 x .7 = $73,500).

Hence $73,500 is the total amount that a buyer’s agent makes per year. However, there some other expenses such as office expenses, monthly bills, insurance and MLS fee, etc. combining all these expenses, the expenditure can go up to $5,000.00 at max. Leaving the agent with $68,000.00 per year.

Not bad at all!!!

Now that you know everything about how much buyer’s agent makes, let’s talk about how much listing agents make.

How Much Does Listing Agent Make?

A listing agent’s income can be calculated using the same formula as a buyer’s agent. However, their way of earning is different.

A typical listing agent’s main job is to list the houses for sale.

As listing a house is takes less time than showing homes to buyers, these agents sell more houses per year, hence more income than a buyer’s agent.

The listing agents can also sell houses to buyers if the buyers are dealing without an agent, giving them an opportunity to earn double the amount.

How Much Does Realtor Make In the First Year?

Real estate is a lucrative business and the professionals in this industry are earning huge sums of money. However, the grass is not green for everyone.

The starting few months of this career can be extremely difficult. There is huge a chance that a beginner realtor would go a few months without even closing a deal. And this is the reason why average realtor in his first year makes only around $20,000.00.

However, this number does not represent the entire category of beginners. There are some realtors who make over $100,000 in their very first year.

How do they do it?

Read it below.

How To Make $100,000 Being a Realtor In Your First Year:

Making a lot of money in your first year is not a rocket science.

But how?

Well… it’s simple. The larger the client base you have, the larger chances of earning big, that too, in your very first year.

Starting to wonder how to build a client base to grow your career in real estate?

It’s simple!

Tell everyone you know about your plans. Tell them that you are going to become a real estate. Tell them that you have gotten the license and possess all the skills required to provide your assistance in a property transaction.

These people can be your friends, family members or anyone that you are meeting for the first time.

Remember: the more people know about your business, the more it’s beneficial.

Buying/selling a house is not something that happens every day in one’s life. It’s not like buying a cosmetic product — that finishes every other day which keeps on bringing the same client to you again and again.

It’s more like once in a lifetime event in the majority of people.

So what are you going to do once you have closed a deal?

Sit in your office wait for the same client for next 10 years, hoping for him to come back and acquire your services?

No! This is not how things work.

You must make sure that you have an unending string of clients.

So, grow your client base by advertising your business. Go to public events and seminars taking place in different areas. Meet new people there and introduce yourself as a realtor. Ask them if they need any help regarding their properties — whether it’s immediate or in possibly in future. If they do, give them your contact details and you will be their top priority when they need any assistance in real estate.

However, the key to being a successful realtor and making $100,000 or above is the services you provide.

When a client comes seeking your help, he is going to give you all his personal information and puts his trust in you.

He is seeking for a service that will make the process comfortable and put him at ease.

The trick here is to treat your clients like gold give them the best service possible. A satisfied client of today will bring numerous potential clients tomorrow. He is the biggest advertisement for your business. If your service was good, the advertisement will be in a good way, if it was not up to the mark, then you are likely to lose a client for life.

Follow these tips and earning a lot of money in your first year will never be an issue for you.


Real estate is an incredible career. It has all the potential to change our lives take us to new heights. However, how much do realtor make depends on his experience and work ethic. Having right attitude and persistent nature plays its part too. so work with patience and success will be yours.

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