If you’re considering switching careers to real estate, you might wonder, “how much does the average real estate agent make?” This information will help you understand how much to save and how to adjust your budget during your career transition period.
We surveyed real estate agents across the country to learn their annual earnings and factors impacting how much money they make. Here’s what we discovered.
Key Takeaways
- A real estate agent’s income varies significantly based on experience, hours worked, and chosen niche, with more time and specialization often leading to higher earnings.
- Agents with several years of experience generally see substantial income growth, tripling their earnings by the third year in the field.
- Choosing a lucrative niche, such as commercial properties or catering to specific client groups like seniors or investors, can boost income beyond standard residential real estate earnings.
Average Real Estate Income Depends on Many Factors
A real estate agent’s income highly depends on many elements, such as years of experience, hours worked per week, and niche.
1. Income increases with longer hours
How much does the average real estate agent make? In real estate, longer hours usually mean higher earnings. According to our survey, agents who work over 50 hours per week earn triple what agents working 20 to 39 hours earn.
2. Experienced agents earn top dollar
In real estate, having more experience typically means a real estate agent will earn more. Our study shows that agents typically triple their first-year income by their third year in business.
3. Niche can play a huge role in determining income
What an average real estate agent makes varies by niche. While residential real estate can be highly lucrative, so can condos, investment properties, and commercial properties. Some specialize in first-time homebuyers, while others make an excellent income catering to seniors.
How Can a Real Estate Agent Rise Above the Average Income?
Your earnings don’t have to be defined by what’s “average” for your niche, experience level, or the amount of time you put into your job. There are always ways to beat the odds and rise above the median level of earnings.
We’ve found that agents earning more typically excel at managing their marketing dollars, finding quality leads, winning real estate listings, and staying updated on best practices. Stay updated in your real estate niche by enrolling in continuing education courses with McKissock Learning.
