Real Estate Agent Salary in USA 2025
Commission earnings, state data, and market trends
Wide Range Based on Experience & Effort
How Much Do Real Estate Agents Earn in 2025?
Real estate agents (also called REALTORS® when members of the National Association of Realtors) help clients buy, sell, and rent properties, earning income primarily through commissions on closed transactions. It's a career with enormous income variation—from part-timers earning under $30,000 to top producers exceeding $500,000 annually.
2025 earnings data shows this wide variation clearly: median income hovers around $54,000–$65,000, but averages reported range from $65,000 to $135,000+ depending on source, experience, hours worked, and market. The difference comes down to whether surveys include part-time agents, how they measure income, and what markets they sample.
Income is highly variable. The top 10% of agents earn $125,000+, while many part-time or new agents earn under $42,000. Unlike salaried professions, real estate rewards effort and skill directly—top producers working 60+ hours weekly can earn $300,000–$430,000+. Commission structures changed following the 2024 NAR settlement, with 2025 average commission rates around 5.44% (up slightly from 5.32% in 2024). Full-time experienced agents consistently rank among jobs that pay $100K+. For broader context, see the average salary in the US.
National Average Salary and Income Ranges
Different data sources report different figures, reflecting real variation in who's counted:
| Metric (USA 2025) | Approximate Value |
|---|---|
| BLS median salary | ~$54,300 |
| PayScale average | ~$65,500 |
| Job board average | ~$85,800 |
| Typical range (25th–75th percentile) | $42,000–$89,000 |
| Top 10% of agents | $125,000+ |
| Full-time experienced (40+ hrs/wk) | $125,000–$250,000 |
| Top producers (60+ hrs/wk) | $300,000–$430,000+ |
Why the Wide Range?
Real estate agent income depends almost entirely on closed transactions. BLS data includes part-timers and new agents who close few deals. Industry surveys of full-time, experienced agents show much higher averages. The truth is: real estate can be a modest-income side hustle or a six-figure career—it depends on how you approach it.
How Commission Earnings Work
Understanding commission structure is essential—it determines how much you actually take home from each transaction.
The Commission Split Chain
Step 1: Total Commission — Standard total commission is 5–6% of sale price. The 2025 national average is approximately 5.44%.
Step 2: Agent Split — Total commission is typically split 50/50 between buyer's agent and seller's agent. Each agent's brokerage receives their half.
Step 3: Brokerage Split — Your brokerage takes a percentage of your share—typically 20–50% depending on experience, production volume, and brokerage model. New agents often start at 50/50 splits; experienced agents may keep 70–90%.
Worked Example: $400,000 Sale
Let's trace the money on a $400,000 home sale at 6% total commission:
Total commission: $400,000 Ă— 6% = $24,000
Your side (as buyer's or seller's agent): $24,000 Ă· 2 = $12,000
After brokerage split (70/30): $12,000 Ă— 70% = $8,400 to you
After expenses: Subtract MLS fees, marketing, licensing, gas, insurance—often $1,000–$2,000+ per transaction. Net: ~$6,500–$7,400.
What This Means for Annual Income
At ~$7,000 net per average transaction, you'd need: 8–9 transactions for ~$60,000, 15 transactions for ~$105,000, and 25+ transactions for $175,000+. Top agents close 30–50+ transactions annually, often with higher-priced properties and better brokerage splits.
Real Estate Agent Salary by State
Geographic location significantly impacts earnings—higher-priced markets mean larger commissions per transaction.
Highest-Paying States
| State | Average Agent Salary |
|---|---|
| Washington | $97,169 |
| New York | $93,860 |
| Massachusetts | $93,696 |
| Alaska | $92,394 |
| Vermont | $91,219 |
| California | $89,500 |
| Colorado | $87,200 |
Lower-Paying States
| State | Average Agent Salary |
|---|---|
| Florida | $64,112 |
| West Virginia | $66,418 |
| Arkansas | $70,942 |
| Mississippi | $71,500 |
| Oklahoma | $72,300 |
Broker vs. Agent Pay
Real estate brokers (licensed to operate independently and supervise agents) earn more: top broker states report averages around $100,000–$112,000. Earning a broker's license is a common path to higher income.
Salary by Experience and Hours Worked
Two factors drive real estate income more than anything else: years of experience (building skills, reputation, and referral networks) and hours worked.
By Years of Experience
| Experience Level | Average Annual Income |
|---|---|
| Entry-level (<1 year) | $56,000–$62,000 |
| 1–3 years | $85,000–$130,000 |
| 4–10 years | $175,000–$250,000 |
| 11–25 years | $275,000–$365,000 |
By Hours Worked Per Week
| Weekly Hours | Average Annual Income |
|---|---|
| <20 hours (part-time) | ~$21,000 |
| 21–39 hours | ~$63,500 |
| 40–50 hours (full-time) | ~$125,000 |
| 51–59 hours | ~$269,000 |
| 60+ hours | ~$430,000 |
The correlation between hours and income is striking. Agents treating real estate as a full-time career earn dramatically more than part-timers—the data suggests each additional 10 hours weekly roughly doubles income.
Salary by Niche and Specialization
Specialization significantly impacts earnings—some niches generate much higher income per transaction.
| Niche / Specialty | Average Annual Income |
|---|---|
| Commercial properties | ~$317,500 |
| Multi-family properties | ~$305,000 |
| Investment properties | ~$213,500 |
| Luxury residential | ~$166,500 |
| Standard residential | ~$135,000 |
Why Commercial Pays More
Commercial real estate involves larger transaction values (multi-million dollar properties are common), longer sales cycles (more hours per deal but higher payoff), sophisticated clients (businesses and investors), and fewer competitors (higher barrier to entry). The trade-off: commercial requires more expertise, longer ramp-up time, and more complex deal structures.
Luxury Residential
Luxury residential ($1M+ homes) offers higher commissions per transaction but requires: building networks in wealthy communities, premium marketing (staging, photography, video), longer sales cycles, and patience (fewer transactions annually but larger each).
What Real Estate Agents Do: Role and Work Environment
Understanding the work helps set expectations for income and lifestyle.
Core Responsibilities
Real estate agents: prospect for new clients (marketing, networking, lead generation), meet with buyers to understand needs and show properties, help sellers price and market their homes, negotiate offers and counteroffers, prepare contracts and coordinate documentation, manage inspections, appraisals, and contingencies, coordinate closings and ensure smooth transactions, and maintain relationships for referrals and repeat business.
Work Characteristics
Schedule: Irregular hours—evenings and weekends are peak times for showings and client meetings. Open houses, closings, and urgent client needs create unpredictable demands.
Employment status: Most agents are independent contractors, not employees. You're running your own business within a brokerage framework.
Income uncertainty: No salary, no benefits, no guaranteed income. You eat what you kill—months can pass between commission checks, especially early in your career.
Expenses: Agents pay their own licensing fees, MLS dues, marketing costs, vehicle expenses, insurance, and often desk fees to their brokerage.
2025 Market Trends and NAR Settlement Impact
The 2024 NAR settlement changed how commissions work—here's what it means for 2025 earnings.
What the Settlement Changed
The settlement addressed antitrust concerns about commission practices. Key changes include: sellers no longer required to offer buyer agent compensation through MLS, buyers must sign written agreements with their agents before touring homes, and increased transparency about who pays what.
Impact on Commission Rates
Despite predictions that commissions would plummet, 2025 data shows commissions have remained stable: the 2025 average commission rate is approximately 5.44%—actually up from 5.32% in 2024, though still slightly below 2023's 5.49% and 2020's 5.5%.
Commission rates vary by state: ranging from approximately 4.8% to 6.03% depending on local market conditions and customs.
What This Means for Agents
Agents who adapt to new disclosure requirements are thriving. The changes emphasize buyer agent value proposition—agents must clearly articulate their worth to secure buyer agreements. Strong agents with clear communication skills and demonstrated value are reporting minimal income impact.
How to Increase Your Real Estate Agent Income
Several strategies can significantly boost real estate earnings.
Work Full-Time (40+ Hours Weekly)
The data is clear: hours correlate strongly with income. Part-time agents averaging 20 hours weekly earn ~$21,000; full-time agents working 40+ hours earn ~$125,000. If you want real estate to be a career, treat it like one.
Specialize in High-Value Niches
Commercial, multi-family, and investment properties generate significantly higher income than standard residential. Luxury residential offers higher per-transaction commissions. Choose a niche that matches your interests and local market opportunities.
Build Referral Networks
Top agents get most business from referrals and repeat clients—not cold leads. Invest in client relationships, stay in touch, and deliver exceptional service that generates word-of-mouth.
Get Your Broker's License
Brokers earn more and keep larger commission shares. Requirements vary by state but typically require additional education and experience. Consider the broker path once you have several years of successful sales.
Target High-Price Markets
A 3% commission on a $800,000 home is $24,000; on a $300,000 home it's $9,000. Working in higher-priced markets or neighborhoods increases earnings per transaction.
Negotiate Better Splits
As you build production, negotiate better splits with your brokerage—or move to a brokerage with better terms. High producers often keep 80–90% of their commission. For negotiation tactics, see our salary negotiation guide.
Frequently Asked Questions
What is the average real estate agent salary in 2025?
It depends who you count. BLS median is ~$54,300 (includes part-timers). Full-time experienced agents average $125,000–$250,000. Top producers working 60+ hours weekly can earn $300,000–$430,000+. The typical middle range (25th–75th percentile) is $42,000–$89,000.
How much commission do real estate agents make per sale?
Total commission averages 5.44% in 2025, split between buyer and seller agents. After brokerage splits, agents typically net 1.5–2.5% of sale price per transaction. On a $400,000 sale, that's roughly $6,000–$10,000 after splits and before expenses.
Which states pay real estate agents the most?
Highest-paying states include Washington ($97,169 average), New York ($93,860), Massachusetts ($93,696), Alaska ($92,394), and Vermont ($91,219). These reflect higher home prices generating larger commissions.
How did the NAR settlement affect agent commissions in 2025?
Despite concerns, commission rates remained stable. The 2025 average (5.44%) is slightly higher than 2024 (5.32%). Key changes involve transparency and buyer-broker agreements, but overall commission levels haven't collapsed as some predicted.
How can I earn more as a real estate agent?
Work full-time (40+ hours weekly), specialize in high-value niches (commercial, luxury, investment), build strong referral networks, target high-price markets, negotiate better brokerage splits, and consider getting your broker's license.