How Much Money Do Real Estate Agents Make in 2021?
Thinking about becoming a real estate agent? One of the first things you’ll want to know is how much you can earn. Unlike most jobs, real estate agents typically don’t receive a guaranteed salary. Income is based on how many homes you help buy or sell and how well you perform.
In this guide, we’ll break down what influences an agent’s income and what you can expect in this career path.
How Much Money Do Real Estate Agents Make?
As of 2025, the average salary for a real estate agent in the United States is approximately $100,243 per year. But earnings can vary widely. It depends on factors like how long they’ve been in the business, their local market, the brokerage they work with, and the types of properties they sell.
Experience Level
One of the biggest income factors is experience. Most first-year agents earn less while they build a client base and reputation. Marketing helps, but referrals from happy clients are what really drive long-term success, and those take time.
Since agents only earn commissions when they close a deal, no client means no paycheck. Early on, income can be inconsistent, but as experience and referrals grow, so does earning potential.
Success Rate
An agent’s success rate plays a major role in how much they earn. Those who consistently sell high-value homes can make well above the average income. But most agents don’t hit those numbers, especially early on.
In fact, the average agent sells just four to six homes a year. New agents should set realistic expectations and aim for fewer than 10 transactions in their first year while they build experience and momentum.
Sponsoring Brokerage
Another key factor in an agent’s income is their commission split with their brokerage. While agents earn money through commissions on home sales, they don’t keep the full amount. A portion goes to their sponsoring broker, and how that split is structured usually depends on experience.
New agents often start with a 50/50 split, meaning the broker takes half. As agents gain experience and close more deals, they can negotiate more favorable terms, keeping a larger share of each commission.
Location
Where an agent works has a major impact on their income. Real estate markets vary widely, and so do average home prices.
For example, an agent selling million-dollar homes in Los Angeles will naturally earn more per sale than one selling $200,000 homes in Ohio. Because of this, agent incomes can differ significantly from state to state.
10 States Where Real Estate Agents Earn the Most Money
If you live in one of these ten states, you’re in luck! You will be making more money than those in the other 40 states. Here are the top ten states in 2025 where real estate agents earn the most annually:
- Vermont: $111,369.78
- New York: $95,240.11
- Nebraska: $94,878.81
- Connecticut: $92,563.92
- Alaska: $92,130.39
- California: $90,715.33
- Oregon: $88,488.81
- Massachusetts: $88,834.33
- Colorado: $88,655.47
- North Dakota: $87,498.78
10 States Where Real Estate Agents Earn the Least Money
Unfortunately, not all states have a booming real estate industry. If you’re in one of these ten states, you will be making some of the lowest incomes in the country:
- Mississippi: $69,104.94
- Florida: $71,140.72
- Kentucky: $71,481.00
- Montana: $72,666.56
- Louisiana: $73,766.92
- Arkansas: $74,954.81
- Ohio: $74,588.03
- Minnesota: $74,803.50
- Missouri: $75,607.83
- South Carolina: $75,354.53
How Real Estate Commissions Are Paid
The real estate commission landscape underwent a substantial transformation following the National Association of Realtors (NAR) settlement in August 2024. Previously, sellers typically paid a combined commission (often 5%–6% of the sale price), which was split between the listing agent and the buyer's agent. Now, the process is more transparent and negotiable.
Key Changes:
- Buyer-Broker Agreements: Buyers are now required to sign a written agreement with their agent before viewing properties, outlining the services provided and the compensation agreed upon.
- MLS Commission Listings: Listing agents can no longer advertise compensation offers to buyer agents on Multiple Listing Services (MLS).
- Negotiable Commissions: Buyers and sellers must negotiate commissions directly with their respective agents. Sellers can still choose to offer compensation to buyer agents, but it's no longer a standard practice.
Real-World Example:
Consider a home sold for $400,000 with a total commission of 5.44% (the national average in 2025).
- Total Commission: $21,760
- Listing Agent's Share: (2.77%): $11,080
- Buyer's Agent's Share: (2.67%): $10,680
Under the new rules, the buyer would negotiate and agree upon the $10,680 compensation with their agent, possibly paying it out-of-pocket or requesting the seller to cover it as part of the purchase agreement.
These changes enhance transparency and allow for more flexibility in real estate transactions. Both buyers and sellers are encouraged to discuss and negotiate commission structures with their agents to ensure clarity and mutual agreement.
Start Earning as a Real Estate Agent With Agent Campus by 360training
Now that you understand more about the payment structure of real estate agents, are you ready to start your career as one and start earning? If so, take advantage of Agent Campus by 360training’s Real Estate Pre-License Course to educate yourself on best practices and prepare for your real estate license exam.
