The income of real estate agents is highly variable, influenced by factors such as experience, hours worked, local market conditions, and specialization. A recent 2024 survey of nearly 2,000 licensed real estate professionals revealed an average gross income of $153,000. But how much do real estate agents make in commission specifically, and what impacts that number? Let’s delve into the key aspects that shape a real estate agent’s earning potential.
Factors Influencing Real Estate Agent Commission
Beyond the general market trends, several key factors directly influence how much real estate agents make:
- Hours Worked: The more time dedicated to the profession, the higher the potential earnings.
- Location: Working in areas with higher property values generally translates to higher commissions.
- Specialty/Niche: Focusing on specific types of properties or clients can impact income.
- Years of Experience: Experience often leads to a larger client base and increased deal-closing ability.
Real Estate Agent Salary Based on Hours Worked
The number of hours a real estate agent dedicates to their work significantly impacts their income. Full-time agents typically earn substantially more than those working part-time. Entering the field part-time can be a good way to test the waters while maintaining a steady income.
| Hours Worked | Average Salary |
|---|---|
| <20 | $21,000 |
| 21-39 | $63,500 |
| 40-50 | $125,000 |
| 51-59 | $269,250 |
| 60+ | $430,000 |
Source: 2025 Colibri Real Estate Salary Guide
Real Estate Agent Commission and Location
Geographic location plays a crucial role in determining a real estate agent’s earning potential. Urban and suburban areas with higher average home prices tend to offer greater commission opportunities.
States with the highest average real estate agent salaries:
Indiana: $191,098
Alabama: $137,196
North Dakota: $124,822
West Virginia: $123,390
Specialization and Niche Impact on Real Estate Agent Earnings
Just as doctors specialize in different areas of medicine, real estate agents can specialize in specific property types or client segments. Agents focusing on commercial and luxury residential properties often earn more due to the higher price points and corresponding commissions.
| Niche/Specialty | Average Salary |
|---|---|
| Residential | $135,000 |
| Multi-family properties | $305,000 |
| Commercial properties | $317,500 |
| Investment properties | $213,500 |
| Luxury real estate | $166,500 |
Source: 2025 Colibri Real Estate Salary Guide
The Impact of Experience on Real Estate Agent Commission
While the first year in real estate can be challenging, agents who persevere often see significant financial rewards within a short period. Success in the initial year is often linked to finding a supportive brokerage and a knowledgeable mentor.
| Years of Experience | Average Salary |
|---|---|
| 1-3 | $128,750 |
| 4-10 | $250,000 |
| 11-25 | $363,700 |
Source: 2025 Colibri Real Estate Salary Guide
Real Estate Agent Salary by State
Want to see how your state compares to the rest of the country? This table outlines the average salary for real estate agents in each state.
| State | Salary | State | Salary |
|---|---|---|---|
| Alabama | $137,196 | Alaska | $94,510 |
| American Samoa | $109,901 | Arizona | $120,765 |
| Arkansas | $96,125 | California | $109,603 |
| Colorado | $110,688 | Connecticut | $101,224 |
| Delaware | $98,334 | District of Columbia | $109,260 |
| Florida | $97,842 | Georgia | $102,761 |
| Hawaii | $103,654 | Idaho | $98,166 |
| Illinois | $98,674 | Indiana | $191,098 |
| Iowa | $89,592 | Kansas | $93,769 |
| Kentucky | $80,525 | Louisiana | $94,805 |
| Maine | $120,265 | Maryland | $103,208 |
| Massachusetts | $87,851 | Michigan | $98,793 |
| Minnesota | $111,797 | Mississippi | $88,301 |
| Missouri | $94,233 | Montana | $114,792 |
| Nebraska | $122,306 | Nevada | $102,639 |
| New Hampshire | $93,512 | New Jersey | $100,920 |
| New Mexico | $90,966 | New York | $84,829 |
| North Carolina | $108,667 | North Dakota | $124,822 |
| Northern Marianas Islands | $92,635 | Ohio | $93,474 |
| Oklahoma | $90,279 | Oregon | $99,728 |
| Pennsylvania | $91,528 | Puerto Rico | $64,195 |
| Rhode Island | $102,153 | South Carolina | $98,235 |
| South Dakota | $88,884 | Tennessee | $99,164 |
| Texas | $86,455 | Utah | $82,822 |
| Vermont | $115,948 | Virgin Islands | $100,440 |
| Virginia | $107,082 | Washington | $89,254 |
| West Virginia | $123,390 | Wisconsin | $92,608 |
| Wyoming | $102,433 |
Source: Indeed, January 2025
Conclusion: Maximizing Your Real Estate Agent Commission
Understanding the factors that influence how much do real estate agents make in commission is crucial for aspiring and current agents alike. By strategically managing their time, choosing the right location and specialization, and continuously building experience, real estate professionals can significantly increase their earning potential and achieve their financial goals.
