The real estate industry has experienced massive growth over the years due to the growing need of people wanting to own their own homes. This has led to an increased interest in becoming real estate agents either as a full-time career or a part-time job.

Contrary to the stereotypes who believe that real estate job is easy and very lucrative, in reality, this industry requires hard work and patience before its start paying off. For this article, we are going to discuss the most important question that has been on our minds. What Is the Average Salary of Real Estate Agents in 2018?

The salaries of real estate agents 

The median income of real estate agents especially those working in the United States is $40,000-$45000 a year. This is a pretty decent amount when compared to other professions, this is enough to cater to your daily needs for you and your family. However, considering how the real estate business is there are various factors that can affect the amount of income or salary for real estate agents. 

Average hours per week

The number of hours per week worked is a huge determinant on how much one is going to rake in that month. The higher the number of hours worked leads to increased earnings, for example, those agents who worked 40 hours or more a week earned a median income of $60,100 and higher as compared to those who worked for 60 hours or more per week their income was $93,000 and more.

For those agents who work part-time or a side hustle their earnings were significantly lesser their counterparts who worked full time


A large number of real estate agents are paid purely on the basis of commissions. As it is with any other profession, experience plays a key role in determining the amount you are going to earn and real estate sector is no exception. Agents who have more experience and have been in this field for a long time made more money than those with less experience.

A recent study carried out showed that a realtor with 20 years and more experience earned $60,000 and more, compared to an agent who has been in the real estate business for 3-5 years earned a median salary of $34,600.

This is due to a veteran in this field has the right connection and link to multiple other agents, on the other hand, they have the skills and techniques of all matters regarding real estate hence they are able to close the deal faster and with so much ease as compared to less experienced agents. This particular aspect will make them earn more because they are far much better at doing their jobs.


In the real estate business, it's not a requirement for one to be a college graduate, but it's advisable to pursue a degree if you want to succeed in this field. Real estate is sales oriented, thus having skills and knowledge in customer relations, marketing and technical aspects like negotiating leases gives you an edge over those who do not have these skills.

Those who have college degrees will be paid more than those who don't have as a result of the difference in technical skill and knowledge, as they will be able to attract more and more home buyers.


Clients are a major stone when it comes to earnings. A majority of agents earn their income either from one client on several occasions or from the same client through referrals. High earning agents get most of their business from repeat clients and referrals.

According to a recent report by National Association of Agents, agents who earn less get 20% of their clients or business from referrals while for the high earning agents the figure is 60%. Customer satisfaction is key as clients will keep on coming back and also through their referrals you will get new clients as well.

Average Realtor Commission 2018 

If you want to venture into the real estate sector, you need to understand the basic concept of the real estate commission. This is how a majority of agents are paid. The payment system varies from firm to firm. Many brokerage firms have a structured salary-based system while a majority still used the commission base structure. 

Therefore, salary will be based on commission splits, when signing with a brokerage firm you will negotiate a certain percentage with them. Normally for all new agent brokerage firm have a standardized commission split while for the experienced agents the firm increases their commission split. 

For example, this is how commission split works if you sell a house valued at $600000 the agent commission is 6% if you are a representative of both the buyer and seller. In case of there being a selling and buying agent, the commission split will be 3% for each.

Note: It's important to note that each agent is responsible for his/her own taxes which includes pre-tax and also pre-expenses.

How can you increase your earnings as real estate agents? 


  • For new agents, you should exploit the online platforms to increase your presence and find new marketing leads.
  • Efficient usage of email networking programs that will produce referrals and assist you in maintaining a long-term association with clients
  • Concentrate all your efforts in a particular geographical location will further enhance your success and ultimately earning
  • Using print and electronic media like the Zillow, which is the most popular site in real estate sector. It helps to build your new online profile and assist you in generating new leads also.


Being a real estate agent is an exciting prospect as you will be your own boss, no one will be able to dictate you or would be needed to follow certain rules and procedures as opposed to other professions. You will also be able to meet new people and interact, which will provide you the opportunity to learn new things enabling you to improve and adapt to the various working environment.

Earnings in this sector is not that bad, especially for new agents as it is sufficient to provide for all your basic needs. In this post we have discussed all the important aspects relating to real estate earnings and commissions that will greatly help you if and when you decide to join this vibrant industry.

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