How Much Do Real Estate Agents Make?

Article thumbnail

It is no secret. The National Association of Realtors, NAR, puts out an annual report explaining how much Realtors earn each year, how much money they make. The big story for Realtor’s income is that is hasn’t increased much from 2014 ($47,800) to 2023 ($56,400), certainly decreased overall when compared with inflation over the same time period. Realtor income is not expect to increase much over the next few years due to a relatively cool real estate market (due to high interest rates) This market is currently defined by a significant drop in overall sales transactions for the entire industry. Though whenever those interest rates drop again, it is likely Realtor income will increase further. That is unless, all of the recent lawsuits over commission practices cause commission rates to drop further. We keep track of local and national commission rates and so far there hasn’t been much movement, just a slow incremental decrease in commissions as the years go by.

Personally, we have always publicly published our commission rates, which are lower than average. For the last 20+ years we’ve strived to provides a pay less and get more service, where our commissions are lower than most, but our marketing and services are higher. This has led to over 2,000 local team sales. All real estate commissions are negotiable.

The report is based on Realtors’ income, but not all real estate agents are Realtors (most are). To find out the difference between a real estate broker, real estate agent, and Realtor, read our guide here.

Also if you’re curious as to how many Realtors there are in the United States, Oregon, or Portland, and whether or not that number is increasing or decreasing, we’ve got that report too.

If you’re thinking of getting your Oregon Brokers (real estate agent) license, we have the definitive, step by step, 4,000+ word guide, that also includes a summary breakdown of all the costs involved.

How Much Do Real Estate Agents Make?

The answer is not much. The average real estate agent’s annual income is pretty low. However, you have to take into account the large number of hobbyist real estate agents who have their license but have another job or source of income. In fact, according to the NAR Member Profile Report, more than half of all Realtors have a different primary source of income for their household and it is not real estate. This is why it is important to look at the average income of Realtors who have been licensed for a number of years (which we will).

Year20132014201520162017201820192020
Realtor Dollar Amount Made Annually$43,500$47,700$45,800$39,200$42,500$39,800$41,800$49,700
Year202120222023
Realtor Dollar Amount Made Annually$43,330$54,300$56,400

Realtors Average Income Licensed More than 16 Years

These numbers are certainly better, but still are not that impressive for having more than sixteen years experience in an industry. There was a notable increase from 2019 to 2020 and then subsequent drop after the 2020 peak.

Year20162017201820192020
Realtor Income with 16+ Years Experience$73,400$78,850$78,850$71,000$86,500
Year202120222023
Realtor Income with 16+ Years Experience$75,000$85,000$80,700

Why is Realtor Income So Low?

There are a few primary reasons. First of all, there are simply too many Realtors, we are at a historic high. Second, real estate commissions been dropping slowly across the country. Third, the top 25% of the industry make 75% of the sales.

Realtor income is especially tiny the first few years a real estate agent is licensed. It is recommended to join a successful real estate team at the start of your real estate career to learn the ropes.

The Top 25% of Realtors Sell More than 80% of all Homes

It is a make it or break it industry. Nearly 50% of all real estate agents you might run into are involved in less than 10 transactions a year.

Number of Sales in a Year 2022 Report01-56-1011-1516-2021-5051+
Percentage of Realtors5%24%19%16%9%22%5%
Number of Sales in a Year 2023 Report01-56-1011-1516-2021-5051+
Percentage of Realtors2%21%23%16%12%22%5%

Looking for an Experienced Realtor?

Led by Stephen FitzMaurice, our top 1% sellers agents and top 1% buyers agents have completed over 2,000 home sales in the greater Portland metro area since 2003. Our team of seasoned, full-time agents would look to connect with you today. Give us a call at 503-714-1111 to schedule a no obligation consult or chat with the bot on this site. We’d love to put our experience to work for you!

Let's Connect
Contact us.

What My Clients Are Saying

Stephen made the experience of selling my first house seamless. I live in another state but he kept me informed and moved the process along without a hitch. The only thing another agent could have done differently was charge a much higher commission. I only wish he was able help me purchase in my state. Highly recommend his service and business model.

Julie