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Real Estate Agent Salary: How Much Do Agents Really Make?

Capturing hard numbers on what the average agent earns is like trying to nail Jell-O to a wall. But here at The Close, we developed a salary database tool that gives unique insight into real estate agent salaries in each state—and we bet the results will surprise you.

Written By

Kate Evans

Reviewed By:

Gina Baker

Jan 11, 2024

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Trying to capture hard numbers on an average real estate agent’s salary is like nailing Jell-O to a wall: messy and imprecise. Salaries depend on local markets, brokerage splits, individual effort, and experience. But here at The Close, we developed a salary database tool that gives a unique insight into real estate agent salaries in each state—and we bet the results will surprise you.

Real Estate Agent Salary Defined
How Much Do Real Estate Agents Make in My State?
Why Real Estate Salaries Vary
How to Increase Your Real Estate Agent Salary
Real Estate Agent Salary FAQs
Bringing It All Together

Real Estate Agent Salary Defined

While we do use the term salaries, agents are typically independent contractors. So, a real estate salary is really your gross commission income (GCI), or how much you take home through your real estate transaction commissions. Remember, these are averages (and before taxes because, with effort and time, there is no limit to your take-home pay).

According to our proprietary salary database tool, the nationwide average for a real estate salary is:

$90,506

And the top six states might just surprise you! Check it out while we pack our bags and move to Kansas.

A map of the US with the top six highest average real estate salaries including California, Arizona, Kansas, Virginia, Maryland, and Maine

How Much Do Real Estate Agents Make in My State?

A note on the methodology behind The Close’s proprietary real estate agent salary information: Our salary database is supported by data from numerous sources, including Indeed, ZipRecruiter, Salary.com, Glassdoor, and the National Association of Realtors (NAR).

Keep in mind that these are general averages that regularly change and depend on local markets, individual effort, broker splits, and agent experience. Despite their dynamism, these numbers offer a good idea of an average real estate agent’s salary, state by state.

State	Average Salary	State	Average Salary
Alabama	$98,150.25	Montana	$71,901.00
Alaska	$76,242.50	Nebraska	$88,701.25
Arizona	$102,698.75	Nevada	$99,894.75
Arkansas	$89,801.25	New Hampshire	$79,094.75
California	$106,957.00	New Jersey	$100,636.25
Colorado	$94,182.25	New Mexico	$86,782.50
Connecticut	$96,033.25	New York	$99,324.00
Delaware	$80,745.50	North Carolina	$94,772.25
Florida	$91,246.50	North Dakota	$76,281.00
Georgia	$93,606.25	Ohio	$86,996.25
Hawaii	$85,583.00	Oklahoma	$95,972.00
Idaho	$93,483.50	Oregon	$92,119.25
Illinois	$95,723.75	Pennsylvania	$92,305.25
Indiana	$91,126.50	Rhode Island	$78,612.50
Iowa	$95,278.25	South Carolina	$93,062.75
Kansas	$108,620.25	South Dakota	$75,619.00
Kentucky	$83,031.00	Tennessee	$91,706.50
Louisiana	$87,993.25	Texas	$92,151.00
Maine	$102,254.75	Utah	$88,176.00
Maryland	$102,167.00	Vermont	$81,044.00
Massachusetts	$94,691.00	Virginia	$101,339.75
Michigan	$86,831.50	Washington	$100,118.50
Minnesota	$95,679.50	West Virginia	$71,983.00
Mississippi	$80,879.50	Wisconsin	$84,161.75
Missouri	$95,388.50	Wyoming	$74,134.75

Why Real Estate Salaries Vary

The average real estate salary may have surprised you—after all, Alabama and New York are neck and neck. When looking at the earnings of a real estate agent, there are plenty of reasons why they might be higher (Maine?) … or lower than you’d expect:

Disparate housing markets: Since real estate agents’ total compensation is based on commissions, states with higher average sale prices will see higher average incomes.
Competition: Agents in a small community with only a handful of real estate pros will have a better chance of winning clients than in a large city like Dallas, with roughly 750 agents.
Brokerage splits: Every brokerage handles splits differently, and in a world where brokerages are moving online, those splits can be even more beneficial to agents. These varying models skew the numbers even further, as agents at one brokerage could make a lot more from the same number of transactions than agents from a different brokerage.
Old-fashioned hard work: No surprise, commission-based salaries often reflect work ethic and hustle. It’s generally safe to say that agents who work their tails off will bring home more than agents who don’t. The same thing goes for experience. Agents with more years under their belts generally take home higher compensation. Remember, some part-time agents might not be at the top of the average but are still making their side hustle worth it.

How to Increase Your Real Estate Agent Salary

While you can’t control how many years you’ve been in the business or the amount of competition in your area, you can always level up and increase your salary, even if you’re a brand-new agent. You’re not locked into a salary determined by corporate role banding. You have unlimited potential. The Close has the tools and strategy guides you need to plan, start, and scale your business.

Select a real estate niche: It might be military families, seniors, first-time buyers, or luxury listings. Focus on that specific market and become the “go-to” for everything in your niche.
Focus on your skills: Focus on skills that will benefit you and your commission. Start with sharpening your negotiation and communication strategies.
Make strategic decisions: If you’re a new agent, start with our checklist, made specifically for you. It will help you make a strategic plan for success and a healthy salary.
Put that well-earned license to work: We have a whole list of jobs that require a real estate license and might just be the perfect side hustle for you.

Real Estate Agent Salary FAQs

A real estate agent is licensed to represent buyers and sellers in real estate transactions. They are often referred to as “salespeople” by their state licensing entity, but some states make it a little more confusing by referring to every licensed agent as a “broker” (North Carolina, Illinois, Washington, Colorado, and Indiana—you’re the drama).

Agents (even those who are called “brokers”) must work under the supervision of an employing broker (also called a supervising broker, managing broker, or broker-in-charge).

You’re wondering, “How much do real estate agents make?” So what’s the difference between a real estate agent and a Realtor? A Realtor is a professional who is a dues-paying member of the National Association of Realtors (NAR). They could be an agent, managing broker, real estate developer, home inspector, or none of the above. So a Realtor’s salary will vary even more than a salesperson’s. NAR is the nation’s largest trade association and was founded in 1908. Interestingly, the term Realtor is a registered trademark. File that away for your next trivia night. For more trivia, check out our real estate statistics article!

Real estate agents make their money from commissions on properties sold. So we’re not talking about a “salary,” per se, but the total take-home that a real estate agent makes in a year through commissions.

Typically, the seller of a property pays the entire commission, which is generally 6% (although that’s a percentage that can be negotiated). It’s then split evenly into “sides” between the buyer’s agent and listing agent.

Property Sale Price	6% Commission	3% Side
$100,000	$6,000	$3,000
$250,000	$15,000	$7,500
$500,000	$30,000	$15,000
$1,000,000	$60,000	$30,000
$2,000,000	$120,000	$60,000

A real estate agent then splits their commission with their broker. A typical “split” is 75-25, which means the broker gets 25% of the commission. Newer agents who need more guidance and mentoring could see a split of 50-50. On the other hand, an agent who’s already hit their cap for the year in terms of what they pay into the brokerage might not have to share any of their commission.

Sale Price	Agent’s Side (3%)	Agent Take-home After 75-25 Broker Split
$100,000	$3,000	$2,250
$250,000	$7,500	$5,625
$500,000	$15,000	$11,250
$1,000,000	$30,000	$22,500
$2,000,000	$60,000	$45,000

Remember, Uncle Sam has to get his cut. Because agents are independent contractors, they are responsible for paying their taxes, so this is another variable that would come out of the total gross commission amount.

Bringing It All Together

We might not have nailed the Jell-O to the wall, but we offer a pretty good idea of each state’s average real estate agent salary. While these numbers are constantly twisting and changing in the winds of our stormy real estate market, at the end of the day, real estate agents have a big influence over their take-home pay. Put in that hard work, lean on us for strategy and advice, and you’ll outperform your state’s average salary in no time. How do these numbers reflect your experience? Have comments or questions? Leave us a comment below!

Kate Evans

Kate Evans is a content writer, real estate subject matter expert, and investor based in Charleston, South Carolina. Her career has taken her to Africa, Europe, and around the US, where she’s contributed to numerous print and online business and lifestyle publications. Her love of history and old houses led her to real estate and she’s now using her writing experience to bring her real estate expertise to The Close.