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How Much Do Real Estate Agents Make Annually?
Quick Summary
Real estate agents in the United States earn a median annual wage of $52,830 according to the Bureau of Labor Statistics for May 2025, while National Association of REALTORS members average $58,100 a year. Because most agents work on commission, actual income varies widely with transaction volume, location, and experience.
- Medians show the midpoint; averages run higher because a few high-volume agents raise them.
- Check whether a figure is a median or average, which group it covers, and its year.
- Experienced NAR members with 16 or more years averaged $78,900 annually.
- Model net income after brokerage splits and expenses, not gross commissions.
- Some first-year agents earn under $25,000 while they build their pipelines.
Table of Contents
- How Much Do Real Estate Agents Make Annually?
- What Real Estate Agents Earn on Average
- Real Estate Agent Salary by State and Metro Area
- How Real Estate Agents Get Paid
- Gross Commission Versus Take-Home Pay After Expenses
- Income by Experience, Including Part-Time and First-Year Agents
- Commercial Real Estate Agent Salary Compared
- Planning Your First-Year Budget Before You Start Selling
- Frequently Asked Questions
How Much Do Real Estate Agents Make Annually?
Last Updated: October 28, 2026
Real estate agents in the United States earn many incomes, and the figure you see depends heavily on where it comes from. The U.S. Bureau of Labor Statistics reports a median annual wage of $52,830 for real estate sales agents in May 2025, while the National Association of REALTORS® reports average annual income of $58,100 for its members. U.S. Bureau of Labor Statistics median wage data for real estate sales agents
At OneRoof Real Estate, we work with sellers every day, so we see how agent earnings shape the decisions homeowners make about pricing and commissions. This guide explains what agents typically earn, why the numbers differ, and how commissions and expenses reduce what an agent actually keeps.
A real estate agent is a licensed professional who represents buyers or sellers in property transactions and is typically paid through a commission on the sale price. Because most agents work on commission, income depends on how many transactions they close, not on a fixed salary.
What Real Estate Agents Earn on Average
The most-cited government figure is the median wage. The BLS reports a median annual wage of $52,830 for real estate sales agents and $73,220 for real estate brokers in May 2025. Median means half of agents earned more and half earned less, so it is a useful midpoint rather than a ceiling. These figures reflect the reality that many professionals must balance existing financial obligations while they become a real estate agent to build a more lucrative career.
Averages run higher than medians because a small number of high-volume agents pull the average up. NAR's member profile reports average annual income of $58,100, and members with 16 or more years of experience averaged $78,900. National Association of REALTORS® agent income profile
Why the Figures Differ by Source
Reported earnings vary because each source measures something different. Government data reports median wages across all sales agents. NAR reports average income for its REALTOR® members. Third-party aggregators often publish broader estimates based on job postings or self-reported salaries.
Before comparing numbers, check three things: whether the figure is a median or an average, whether it covers only REALTOR® members, and what year the data reflects. Mixing these up is the most common reason agent income estimates seem contradictory.
Real Estate Agent Salary by State and Metro Area
Location shifts earnings considerably. Housing prices, transaction volume, and commission norms differ across states and metro areas.
When comparing your market to a national figure, use a state or metro source from the same year and use the same measure (median versus average) on both sides.
How Real Estate Agents Get Paid
Most agents earn a percentage of the sale price when a transaction closes. The total commission is typically split between the listing side and the buyer's side, and each agent then shares a portion of their share with their brokerage. To see what a typical listing agent commission looks like, read What Is a Typical Listing Agent Commission?.
Gross Commission Versus Take-Home Pay After Expenses
Historical commission data helps explain why this matters. A Stanford Institute for Economic Policy Research case study notes that residential broker commissions have historically averaged nearly 6 percent of a home's closing price. Stanford SIEPR case study on real estate broker value
Our advice is to model net income, not gross, when deciding whether a career in sales makes financial sense. Sellers who want to reduce these costs can explore realistic strategies for avoiding real estate agent commissions.
Income by Experience, Including Part-Time and First-Year Agents
Some agents in their first year earn under $25,000 while they build pipelines, according to a 2026 industry salary guide cited by McKissock.
Commercial Real Estate Agent Salary Compared
The BLS data for real estate agents combines residential and commercial roles, so it does not isolate commercial earnings. Commercial agents often face longer sales cycles and may wait months between closings, which makes cash-flow planning especially important.
Planning Your First-Year Budget Before You Start Selling
- Estimate 12 months of fixed living costs
- Add licensing, education, and association fees
- Budget for marketing and lead generation
- Set aside funds for errors and omissions insurance
- Plan a conservative income target based on net, not gross, commissions
Frequently Asked Questions
How much does a really good real estate agent make a year?
NAR's Member Profile reports average annual REALTOR® income of $58,100, and members with 16 or more years of experience average $78,900. The BLS reports a May 2025 median annual wage of $52,830 for real estate sales agents and $73,220 for brokers.
How are real estate agents paid?
Most real estate agents are paid on commission, earning a share of the sale price when a transaction closes. Historically, residential brokerage commissions averaged nearly 6% of a home's closing price, according to a Stanford Institute for Economic Policy Research case study. That commission is typically split between the listing and buyer sides and then shared with the brokerage under a commission split agreement. Because payment depends on closed deals, income can be uneven from month to month.
What expenses reduce a real estate agent's take-home pay?
Gross commission is rarely what an agent keeps. Common deductions include the brokerage split or desk fee, multiple listing service and association dues, licensing and continuing education costs, marketing and advertising, lead generation, errors and omissions insurance, vehicle and mileage costs, and technology subscriptions. Agents are often independent contractors, so they also pay their own self-employment taxes and may need to set aside money for health coverage and retirement savings.
If you are selling a property and want to avoid the timeline and commission costs of a traditional listing, OneRoof Real Estate buys homes in any condition, with fair, all-cash offers and no commissions or closing costs to the seller. Visit our site to see how a direct sale works.
