How Much Do Real Estate Agents Make?

By
Services for Real Estate Pros with RISMedia

 

It's a common question for consumers, students and real estate professionals.

How much do real estate agents make?

Point2 
came up with an infographic explaining the variables, and we've turned it into a video in our Home Update series! Get the facts on commission splits, continuing education, industry dues and more below.

 




For more Home Updates, subscribe to RISMedia on YouTube.

The preceding was adapted from RISMedia.com - original content can be found here.

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Rainmaker
4,799,256
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Suzanne, I've seen this video and others like it making the rounds, unfortunately the consumer really doesn't care how much goes to whom.  They only care about how much they have to pay.

Dec 16, 2014 08:18 PM #11
Rainmaker
2,042,919
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Gabe is right. Lucky to live where the pie is not split and splintered though. 95% of our small rural market sales are list, market, sell. One broker, less drama, no problems scheduling or "your buyer, my seller" court room tension. Just property listing matchmaking and knowing the product, the people involved in the process.

Dec 17, 2014 10:43 PM #12
Rainmaker
4,600,847
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Suzanne De Vita the public thinks we take home buckets of money, and do not factor in all our overhead and expenses it takes to run  a business.  Great video! 

Dec 18, 2014 02:37 AM #13
Rainer
119,783
Suzanne De Vita
RISMedia
Online Associate Editor

Michael Thornton – There are certainly several factors to consider – this is good info for buyers and sellers, plus folks thinking about going into real estate. Thanks for stopping by!

Joe Petrowsky – You’re right – there are buyers and sellers who just aren’t aware of what goes into being a real estate agent. If agents can educate as much as possible in this and all areas of housing, they’ll become a trusted and valued resource for their clients. Have a great weekend!

Gabe Sanders – Agreed! Hopefully the video nicely summarizes where their dollars are going – not just commission!

Andrew Mooers – I’m happy to learn you have a business model that works for you! Thanks for reading.

Joan Cox – Thank you! Happy to share – it circulated among our social media pages, so I do hope some buyers and sellers out there stumbled across it!

Dec 19, 2014 12:39 AM #14
Ambassador
2,389,139
Robert Vegas Bob Swetz
Las Vegas, NV

Hello Suzanne ... I like Sally & David's comment at number #1 and VB is at 100% with his broker 

Dec 19, 2014 04:32 AM #15
Rainer
119,783
Suzanne De Vita
RISMedia
Online Associate Editor

Robert (Vegas Bob) Swetz - Can't get any better than that! Have a great weekend my friend.

Dec 19, 2014 05:03 AM #16
Rainmaker
3,253,116
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Suzanne

Thanks for sharing the video . . . . and I would agree with Gabe Sanders his comments are right on point.

Good luck and success.

Lou Ludwig

Dec 19, 2014 11:15 AM #17
Rainmaker
3,531,844
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Suzanne glad you brought this around, too often consumers think that all Realtors make lots of money. Some of us are luckier than others. Keeping in mind "luck" is the residue of hard work. Clearly location and client service make the biggest difference. Endre

Dec 19, 2014 12:13 PM #18
Ambassador
645,988
Larry Lawfer
YourStories Realty Group powered by Castles Unlimited® - Newton, MA
"I listen for a living." It's all about you.

Suzanne De Vita I know of only a couple of old school agencies that demand a 50% split.  At Keller we start with a 70%, but this is not about brokerage it is about what we put in our pockets at the end of the sale.  Netting around 25% of your commission is not a bad percentage, but you can focus on your expenses and net far more than that if you are careful.  Lead with revenue and don't get out in front spending money you don't have to be successful.  At $38K in todays world that does not get you much.

Dec 20, 2014 02:11 AM #19
Ambassador
1,306,207
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Suzanne, good evening.    There are a lot of expenses to run a brokerage when helping agents get off the ground.  

Dec 21, 2014 09:22 AM #20
Rainer
119,783
Suzanne De Vita
RISMedia
Online Associate Editor

Lou Ludwig – You and me both! Happy holidays to you and your family!

Endre Barath, Jr. – We make our own luck, don’t we? Well said! Wishing you and your family a happy Christmas!

Larry Lawfer – Sound advice for some of the newer agents out there who may be biting off more than they can chew. Thanks for your comment! And happy holidays to you and yours!

Dagny Eason – I imagine providing those tools to new agents can be costly! Happy holidays to you, my friend.

Dec 21, 2014 11:12 PM #21
Ambassador
3,986,387
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

It is a lot less than the public thinks especially when you factors in expenses and the extra tax burden. 

Dec 22, 2014 07:38 AM #22
Rainer
119,783
Suzanne De Vita
RISMedia
Online Associate Editor

Debbie Reynolds - A misconception, for sure! We shared the video on Facebook so the consumer, as well as new agents, can understand where their money's going. Thanks for your comment!

Dec 22, 2014 10:26 PM #23
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Suzanne.  The average agent could make more working for McDonald's.

Dec 22, 2014 10:35 PM #24
Rainmaker
928,011
Debbie Walsh
Shahar Management - Middletown, NY
Hudson Valley NY Real Estate 845.283-3036

Great video!  The average consumer cannot even begin to guess how many expenses we have.  They just see that big amount and assume we are all overpaid.

Dec 25, 2014 07:27 PM #25
Rainer
119,783
Suzanne De Vita
RISMedia
Online Associate Editor

Debbie Walsh - Hopefully this expels some of those misconceptions! Thanks so much for your comment. Happy New Year!

Dec 30, 2014 11:33 PM #26
Rainmaker
3,531,844
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Suzanne De Vita , just wanted to stop by again and yes you are right:) At the same time I wanted to thank you for the connection and hope to get to know you even better in the New Year. Have a Happy & Prosperous 2015!, Endre

Dec 31, 2014 04:11 AM #27
Rainmaker
2,441,861
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Well, one thing is for sure, Real Estate is not a hobby job!

Dec 31, 2014 04:53 AM #28
Rainer
119,783
Suzanne De Vita
RISMedia
Online Associate Editor

Endre Barath, Jr. - Thank you, as well! Hope you had a wonderful holiday. Here's to 2015!

Evelyn Johnston - My blog summed up in seven words. Love it!

Jan 06, 2015 12:17 AM #29
Rainmaker
3,253,116
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Suzanne

I stopped back re-read the post . . . .  you sure have a lot of interest in the post.

Good luck and success.

Lou Ludwig

Jan 06, 2015 12:48 PM #30
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Rainer
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