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Real Estate Agent Blog

Discover how much money can you make as a real estate agent compared to the average American salary
May 2, 2019

Here’s How Much Real Estate Agents Make

by The CE Shop Team

Make more than the Average Joe Working as a Real Estate Agent

Did you know that the average salary in America is around $56,000? For some, this is more than enough money in the world to satisfy basic needs. You know, things like a college education, paying for trips to Spain, purchasing a small boat for fishing, or procuring enough investments for retirement. Yeah, for most people, $56K is not enough to raise a family and satisfy all of one’s needs.

The chart above details the average salary per state and what the average agent makes in each of those states. As you can see, it doesn’t take a mathematician to see the financial advantages of becoming a real estate agent. With an average salary increase of 33.43% per state, you may be asking, “Why do real estate agents make so much?” The answer is pretty simple: Commission-based salary with a near-infinite ceiling. Let’s do some basic math to explain, shall we? Assuming the following assumptions:

  • HUD (The United States Department of Housing and Urban Development) establishes a 6% commission to sell houses.
  • 3 percent of this commission goes to the buyer’s agent and 3 percent to the seller’s agent.
  • The median house price in the US is $227,000.
  • 87% of homes are sold by real estate agents.
  • Over 5.25 million houses are projected to be sold in the US in 2019.

Doing some simple math––mostly by plugging into our fancy TI-84 Calculators––we are left with $31.10 billion in commissions for the taking.

Advanced Mathematics:

1 House= $227,000


Average Commission = 3%


Per House Commission= $6,810/per house


Projected Houses Sold = 5.25 million


Houses Sold Projected = 87%


Commission Total (US)= $31.10 billion

All this money is up for grabs, but you may be asking, “How can I capture a larger portion of this multi-billion dollar pot?” Well, here are some suggestions to help move your salary barometer in the right direction.

Increase Social Media Presence

Over the past ten years, social media has become the number one growing medium for advertising. The cost to increase your online presence has become immensely cheaper thanks to the increase in different channels and growth in consumer confidence. However, this low price isn’t going to last for long, as larger corporations realize and capitalize on this dirt-cheap, but effective, advertising.

To get a thorough understanding of how to expand your online presence and take advantage of these low advertising costs, check out our previous blog post highlighting why this is such a lucrative endeavor.

Host Many Open Houses

Open Houses are more than just a way to sell your current client’s home; they’re a fantastic way to meet new clients. Yes, you’ll have to deal with minor robberies (“Hey Honey, wouldn’t this $8 Ikea lamp look great in our current house?”), and the 'Feed Me For Free-ers' (“Ahh shucks, these hors d’oeuvres ain’t going to eat themselves”). But with those “lost investments”, you’ll in turn open yourself up to a whole new client base looking to purchase their first, or next home.

Delve deeper into how this win-win scenario can help you sell more homes and expand your business in the process with these exploratory articles.

Maintain Old Relationships and Clients

The more people you know, the more potential doors of business there are to open. In other words, you want to expand your network to create a COI effect and become the connecting link between otherwise distant persons to better their lives. When you create new relationships, you elevate yourself from local real estate agent to the networking champion that helps bring people together.

Learn how you can become this connecting fiber and, in turn, become the hero your town deserves here.

Still unsure about how to grow your real estate business? Check out our 8-minute read on how to become the ultimate real estate agent in this 21st-century environment, and learn how you can take these simple principles to increase your salary and grow your business.