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How Much Does A Real Estate Agent Make Per Year – Stats And Facts

Posted by Sellect Realty on February 1, 2017
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When talking about income, there is no exact figure which helps to determine how much does a real estate agent make per year. Several factors combine and form the numbers of income of a real estate agent. The experience, the category they belong to (commercial or residential) and the commission rate are few to name.

All these factors have a different impact on the income of various agents, hence the different revenue for each agent.

Here is a brief idea as to how these three factors play their part in determining the income of an agent.

How Much Does A Real Estate Agent Make Per Year – Commission Plan

The Commission is a fee that an agent charges for providing his services in making a property transaction between two parties.

The sum of commission earned from annual sales is the biggest factor that determines how much does a real estate agent make per year.

Although the commission rate varies from agent to agent, the average rate in the US ranges between 2.5%-6%.

That means an agent would charge at least 2.5% to 6% of the actual price of property.

Let’s say an agent sells a property worth $200,000 with a commission rate of 3%. The amount he gets at the closing is going to be $6,000.

However, not the entire sum goes to the agent. The fact that most agents are working for brokers these days means a fair share of commission – anywhere between 20% -50% – goes to the broker. Then there are office expenses which leave the agent with just 10-15% of the actual amount he received. Pretty cheap!

Commercial Real Estate Agent Vs Residential Real Estate Agent:

Commercial real estate involves properties such as restaurants, office buildings, industrial buildings, shopping malls, etc.

The commercial properties play an important part when it comes to understanding how much does a real estate agent makes per year. These properties are worth more than residential properties and generate huge profits for the agents.

Commercial Real Estate Agent Vs Residential Real Estate Agent

Image Source: weetes

The median income of a commercial agent is around $63,054.00 with the lowest income being $33k and the highest income being $160k.

On the other hand, the median income of residential real estate agents is just around $46,129.00. With $25k being the lowest income and $100k being the highest number on the scale.

The Experience:

The annual income of a real estate agent also depends on the experience. An agent with greater experience makes more sums than the one who is just in a beginner phase. Here is an income breakdown of real estate agents on their experience.

  • An agent with the experience of 0-5 years earns as much as $43,000.00
  • 5-10 years’ experience in real estate can make you around $59,000.00 on average
  • The most experienced agents are those with the experience of 10-20 years. Their median income goes around $75,000.00 or above.

Experience realtor commission

 

These are some of the facts and stats to help you understand how much does a real estate agent makes per year. Although the start can be a little tricky.  Once you are up and running, the career can be extremely fruitful.

 

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