How much do Real Estate Agents Make? 2020 Update
The National Association of Realtors puts out a Member Profile Report nearly every year that spells out exactly how much real estate agents make, or in this case since they are all members, how much Realtors make. Confused as to the difference? Read our article on Agent vs. Broker vs. Realtor.
In 2020 the median gross income of Realtors was $49,700
Realtor Income Hasn’t Changed Much
I will tell you exactly why this is the case.
It might surprise our readers but real estate commission rates haven’t changed much over the last ten years (see our 2020 national average commission rates report here).
Home prices have significantly increased though. So one would expect that Realtors median income would have risen along with home prices assuming that real estate commission percentages had stayed basically the same.
Except, the number of Realtors has dramatically increased along with home prices and this has leveled out how much real estate agents make each year. See our 2019 report on the record number of real estate agents in the U.S.
Realtors with over 16 years experience made $86,500 on average.
Realtors with less than two years experience made less than $10,000 on average. Both of these are median numbers from NAR’s 2020 Member Profile Report. Obviously experience can make a more dramatic impact on a real estate agent’s income than in other non-commission based industries.
How much do experienced Real Estate Agents Make?
The Top 5% of Realtors Sell More Homes than the Bottom 75% Combined
The bottom 75% of Realtors combined sold around 50 transactions in the 2020 report, while the top 5% sold over 51 on average.
Work with a top 1% Realtor in the U.S. running a top 250 team in the country.
I’ve been licensed in Oregon since 2003. Since 2013 I’ve been in the top 5% of Realtors in the U.S. according to this NAR report and according to Real Trends, my team is a top 250 team in the U.S.
Experience matters. The average Realtor in the 2020 report had twelve transactions in a year, only one a month. The top 5% in the report had at least one transaction close a week on average. If an agent is only selling one home a month it can take a decade (in my opinion) before they have a reasonable amount of experience (over 100 sales) in their local market. Currently I’m over 1,000 local sales and there isn’t much in the industry that can surprise me. This is advantageous for my clients who need a steady hand to help advise them on what might be their greatest financial transaction – the sale or purchase of their next home. If you have any real estate needs in Oregon or Washington, please reach out to us today.August 7, 2020