What Is the Average Real Estate Wage?

With the recent craziness in the United States real estate market, no one could blame you for considering a career as a real estate agent. If you’re aware of the commission structure used by agents to make money, you wouldn’t be wrong if you thought 2020 and 2021 were probably pretty good years to be a real estate agent.

However, you can’t base your career decision on a bit of volatility due to a global crisis. It’s important to make sure that you are signing on to something that you want to do for the long haul. If you are a real estate agent for several decades, there is a good chance you will see rough times for the market, too.

Are you wondering what kind of real estate wage you can expect if you pursue this profession?

Let’s take a look at everything you need to know.

Working in Real Estate: How Do Real Estate Agents Get Paid?

If you’re thinking about becoming a real estate agent, you might be wondering what kind of real estate salary you can expect. However, most agents earn their keep through commissions rather than through a salary.

This means that the amount of money individual agents make can vary widely depending on how many homes they sell and the sales price of those properties.

The amount of money real estate agents makes also depends on how much commission they bring in as well as what percentage they receive of the commission.

Typical real estate commissions range between 4% and 6% of the sales price of a home. However, this is usually split with the other agent working on the real estate deal. On top of that, each agent will have an agreement with their broker regarding further splitting the commission.

What Is the Average Real Estate Wage for an Agent?

According to some estimates, the average amount of money a real estate agent earns each year is about $41,289. However, the range of how much money can be made by a real estate agent is much larger than for other professions because of the commission-based framework.

One of the factors that influence how much a real estate agent makes is their local market. The price of real estate is very dependent on its location, and you can expect that agents make more money where the property is more expensive.

Being a real estate agent is a profession that requires a go-getter attitude and a lot of self-discipline and organization. Since agents aren’t typically paid a salary, it means that the more successful you are as an agent the more money you will end up making each year.

States Where Real Estate Income Is the Highest

In general, real estate agents make the most in states that are located in the northeast, west, and south of the country. Let’s look at some of the states where real estate agents earn the most money.

New York

In New York, the mean annual wage for real estate agents in 2017 was $102,310. As of 2021, the cost of a typical single-family home in the state was $324,464.

Texas

In Texas, the mean annual wage for real estate agents in 2017 was $72,480. As of 2021, the cost of a typical single-family home in the state was $247,210.

Hawaii

In Hawaii, the mean annual wage for real estate agents in 2017 was $72,470. As of 2021, the cost of a typical single-family home in the state was $730,511.

Alaska

In Alaska, the mean annual wage for real estate agents in 2017 was $71,030. As of 2021, the cost of a typical single-family home in the state was $300,592.

Rhode Island

In Rhode Island, the mean annual wage for real estate agents in 2017 was $70,450. As of 2021, the cost of a typical single-family home in the state was $372.809.

The next five top states for real estate agent earnings are California, Pennsylvania, Wyoming, Virginia, and Colorado.

States Where Real Estate Income Is the Lowest

Many of the states where real estate income is the lowest are more in the middle of the country rather than being coastal. Dominated by states in the midwest and south, real estate agents in these states typically make between $41,000 and $47,000.

Ohio

In Ohio, the mean annual wage for real estate agents in 2017 was $41,650. As of 2021, the cost of a typical single-family home in the state was $181,756.

Arkansas

In Arkansas, the mean annual wage for real estate agents in 2017 was $41,660. As of 2021, the cost of a typical single-family home in the state was $149,120.

Montana

In Montana, the mean annual wage for real estate agents in 2017 was $42,010. As of 2021, the cost of a typical single-family home in the state was $359,678.

Indiana

In Indiana, the mean annual wage for real estate agents in 2017 was $43,230. As of 2021, the cost of a typical single-family home in the state was $185,805.

West Virginia

In West Virginia, the mean annual wage for real estate agents in 2017 was $45,220. As of 2021, the cost of a typical single-family home in the state was $117,768.

The next five states in terms of the lowest earnings for real estate agents are Connecticut, Tennessee, Georgia, Nebraska, and Kansas.

Is Becoming a Real Estate Agent Right for You?

There are a lot of different factors that influence how much a real estate agent makes. Being a real estate agent is a lot like being self-employed except for the fact that you have a contract with a broker. This means that how much money you make has a lot to do with how much time and energy you put into helping clients buy and sell houses.

Did you find this article about how much real estate wage you can expect as an agent interesting? If so, be sure to check out the rest of our blog for more informative and useful articles!