How Much Money do Real Estate Agents Make?

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    • Ben, you may need to check out my upcoming Ebook where I discuss what to do to make the Mooney in RE. 🙂

  • I believe you make what you put into it.. Also where you live does make a difference. I just started in real estate sales so i will let you know more later..

    • Average house prices can make a big difference. In my experience the higher the prices the more competition there is from other agents. Good luck!

  • excellent summary. also important to note that very few agents make much money in the first year. location is also critical. in my market (south suburbs of chicago) some of my investment buyers purchase homes for as low as $20,000. not much commission, unless you have an arrangement with your buyer to supplement the commission offered by the seller to make a minimum amount no matter the price of the house.

    • Thank you Synthia! That is very true about home prices. Many agents as they grow focus more on the average price than the number of sales.

  • Great article. Thanks Mark.

  • Hey Mark,

    I wanted to know more about this and if I can contact you.

  • Elsa Thalia says:

    Can I find out how much a Real Estate Agent makes on average in 5 years for a school project?

  • Mark, thank you for this article!! I have sold in new construction and been in property management for many years. I finally decided it was silly not to have my license. I have wanted to be an investor for years, and have always been fascinated by multi-family properties. There is just something magical about breathing new life into a property left for dead. Your article made me giddy because I know I’m on the right track, and you had some super helpful information that I’m excited to read more about. Thank you so much!!!

  • I am a single mother with 3 kids, I am trying to find out how I can get started to get my license. Can you tell me the first step, I would greatly appreciate it!!! 🙂

    • Hi Melvin, I would research my real estate agent articles and possible buy my book how to make it big in real estate. :). The first thing I would do is check to see what the requirements are to get licensed in your state.

  • Hello Mark, since recently i’ve decided that becoming a real estate agent would be suitable for me. I’m already in the process of getting my license, but there are so many questions i’d like to ask. After reading your article most of my questions were answered but id like to contact you and find out some more if its no problem. And thanks a lot for your information it has cleared up a lot.

  • Mark, love your content. Not many investors share this much detail! fyi, your agentcampus affiliate link is broken.

  • siaffa teage says:

    Thanks Mark for all of the information about become a real estate agent. I live in California and I was thinking about become a sales agent and this information help me a lot and answers some of my questions.

  • Thanks Mark for the great article. I have been going nowhere with my career with the corporate world and when I read your article my lifestyle fits best with being a real estate agent and being your own boss plus freedom. Now I just have to educate myself fully and get my license as the first step of a new career!

  • Christopher Brozek says:

    Hi Mark my name is Christopher. I would like to see some factual documents in which states this big income you speak of. Why would you need to sell a book if you are so well off. This article has brought me to an agnostic mindset pertaining to your article. I can neither believe or disbelieve. However, I would greatly appreciate some more information. I believe you either got a lot of money through inheritance or maybe won a lottery, jackpot, etc something through gambling to start investing in yourself… I would really like a response out of you how you truly made it. Also, why don’t you admit to these good people luck is also a huge factor!

    • Hi Christopher, I think if you ever want to be wealthy you need to change your attitude completely when it comes to thinking about how others have become wealthy. If you only believe others can be wealthy by being lucky or inheriting money, than you will never make it yourself unless you are lucky or inherit money. Most people who are extremely wealthy never inherited their money or won the lottery, they made it themselves through business. In fact most people who win the lottery, lose the money they won because they are not prepared for it and have no idea how to handle money.

      For the record I have never inherited anything, except a few coins when my grandfather died that were stolen from me later on. I have never won the lottery unless you count a $50 scratch ticket when I was about 19 that was given to me. I do not gamble.

      As far as luck here is a great quote: I’ve found that luck is quite predictable. If you want more luck, take more chances. Be more active. Show up more often.
      Brian Tracy

      Luck helps those that help themselves.

      I have many different things going on. I write books, I have my blog, I do fix and lips, I sell houses and I have my rentals. I enjoy writing even though it is the least lucrative of all my income streams. Because I make a lot of money does that mean I should not charge for a book that takes an extremely long time to write an prepare?

      To satisfy your request I will send a print out of the houses I sold last year on MLS.

  • Stephanie says:

    How do you compensate for economic downturns? How can you plan or invest when the market is bad?

    • Hi Stephanie, With me I have my REO sales and retail sales. When the times are bad, foreclosures are up and I make money selling REO. When times are good, there are more retail buyers and sellers and I make money with more traditional real estate. It is the same with investing. I get much cheaper properties when times are bad and when they are good rents are usually higher and homes sell for more. I think there is always opportunity because people always need a place to live.

  • Hello Mark, great article! I appreciate the information. I am interested in becoming a part-time real estate agent (while keeping my full time job) because I think it will benefit my ultimate goal of doing rental investments and possibly fix and flips. Does your book talk about how to get into real estate investing when you don’t have a lot of cash saved up?

    • Hi Chris, it depends on which book. The real estate agent book does not, but the how to finance rental properties book does.

  • I think, Investing in real estate is more better option in comparison to being a real estate agent, Because you could earn a lot in real estate, if you invest at right place and in right time. For that, You should consult with one of the real estate expert and then invest. It’s a promise that, you will earn a lot!!!

  • Thank you so much a wonderful article and must important to few agents make more money in the half year. location is also important … This information is important for all real estate agents.

  • Hi mark ,

    Just came across this while searching about real estate and it was very helpful but had left me thinking if I am making the right move in a career ! I’m 23 from London and have been offered a commission only job (45%) out in Dubai as a real estate broker and after working in accounts since I was 17 i am very dubious about if this is the right decision for me . I know companies can fill your head with a lot of you can earn this and that in a month ( which apparently someone did last month which was 4 k and 18k in one month ( pounds ) I am just wondering how realistic this is , I don’t know if you know anything about the Dubai markets but being a newbie myself to this field it’s very daunting to move country and support myself on the hope that I can build a career and a successful one at that as I am very driven and want to make the most out my life where possible .

    I am supposed to be in Dubai in less than two weeks and would really appreciate some advice on this as I don’t know whether to take a chance and possibly loose money and come back with my tail between my legs or hopefully strike gold ( tax free wooo )

    Thanks for any help in advance 🙂 Hannah

    • Hi Hannah, I really have no idea about the real estate market in Dubai. If I were you I would contact any agent in the area you can and ask them what it is like.

  • Hello, Thanks for sharing your idea. I like your blog because you have consider all points surrounding real estate agent, difference in agent and Realtor. Al the points are very informative. You also mentioned REO agent its costing plans target. Thanks for sharing information.

  • Mark – that was a terrific article! Thank you for sharing this information with us.

    I currently invest in real estate (mainly fix and flips) and have decided to go after getting my real estate license. I have already taken my pre-licensing classes and I am currently studying for my exams. Also, I am an avid reader so I have read books like Think and Grow Rich, The Millionaire Real Estate Agent, The Slight Edge, and The Compound Effect. I understand that success doesn’t happen overnight and I am driven and have a great work ethic — and I understand the power of great marketing.

    My question to you is… in your opinion, as a new agent (who also invests), which specialization is better for me – Short Sales or REO’s? Also, how does one become an REO real estate agent? I understand what Short Sales and REO’s are and I would really appreciate your insight on this.

    Thanks for your time and advice in advance!

  • That was a great article. I finish school to become an agent in December and I am excited and eager to get out there and hustle my tail off. I will read more of your articles and hope to see you at the top someday soon.

  • Great article with tons of info I have not found anywhere else. What is your take on real estate referrals? I am currently taking my prelicensing course and truly have no intention on becoming an active agent. I know referrals/referring agents get a percentage of the percentage from the buyer or seller’s commission and that amount also gets split between their broker and themselves. If I successfully market for referrals and I am able to do this nationally, do you think it is possible to earn full time income? Have you yourself ever received a referral that ended in a sale, or know of your one of your team members who have received a referral that lead to a sale?

    • Hi Andrea, thank you!
      I do give out referals all the time. It is a great way to make money, but I think you will make more if you work some deals yourself.

  • I’m actually very interested in real estate. I live in NYC and work as a legal sceretary for a law firm that deals with homes going through foreclosure. However, I don’t have the proper funds to even rehab a house /apt to then possibly flip or rent to gain passive income. I heard about wholesaling but the logistics confuse me a bit. I’m hoping maybe someone on this forum can assist in guiding me. If there is anyone that can help contact me via email [email protected]. Thank you.

  • Andrea Edwards says:

    Thank you for taking the time to reply. I recently passed my online class final and I am now studying for the state licensing exam. I have no time to show houses to anyone during the week at all, and only a few hours that I could dedicate on the weekends. Do you recommend trying to specialize as a buyer’s or seller’s agent, or just take what falls in my net first and work with it the best I can?

    • That will be tough either way. I would try to partner with someone or join a team that can help you out.

      • Andrea Edwards says:

        Thank you. That sounds like a good idea.

  • mark-

    I am thinking of getting back into real estate after being laid off from a management position . what advise can you give me to get my name back on the map. strategic advertising and what can I expect to pay in advertising the first year?
    thank you

    • Hi Dean, I would focus on building your sphere of influence instead of advertising. My team spends a couple thousand a month on advertising, but we have 8 people and sell a lot of houses. Our goal is to building relationships and build referrals not so much get cold leads calling us.

  • The real estate brokerage business is somewhat flawed, because it requires agents to be entrepreneurs. Most are not! I guess it kinda of the 80/20 principle. Which applies to all faucets of life.

    Perhaps this is why the team concept has become popular?

  • Hi Mark,

    My name is Rex and i am from Los Angeles. Recently i have been thinking about to become a real state agent. What would you recommond me to do after getting my license? Ps, i am really out of budget right now and totally in debt of thousands of dollars but for the freedom and the desire of money. I am willing to work hard in this field. Any advise would be much appreciated.

    • Hi Rex, Read my articles on becoming a real estate agent. The first step is to tell everyone you know you are becoming an agent, get your license and keep telling them. Focus on relationships and referral business from those relationships. If you can find a team to work for while you get your license that would be ideal.

  • Mark, great article, thanks. I was proposed by a broker (family friend) to join the team. He has a huge client base and has been in business for 20+ years and wants me to be his head real estate agent. With good work ethic and timely hours, what do you think my first year would look like there already having that big client base??

    • Thanks Dan, an agent who joined my team made over 100k last year, but that is rare. If you have a client base already and work hard I think you could do 100k.

  • Hello ,
    I am a college student that is going into part-time real estate. I live in NYC and plan to join a real estate company here in NYC. Does anyone know how part-time is in Manhattan.

  • This is a very motivating piece for those planning to become a real estate agent. Some dream of making it big in real estate but failed because they don’t have discipline and hard work. The trick is to make that step (big or small) everyday to achieve whatever goal you have.

  • Hi,

    What are things to should know about real estate? How many experience should real estate agent have? Can anyone help me out.

    • Mark Ferguson says:

      Keep reading the blog!

  • John Feliciano says:

    Great content Mark I always try and get other agents perspective on the business but do you have any additional advice to someone who is starting out because that seems to be the hardest challenge. I’ve been working as a realtor for 4 months now and still haven’t gotten my first closing..

  • awesome share real estate agent income package is quite good

  • Hunter Chen says:

    Great info throughout your site, Mark. I appreciate the detailed plans and advice. How does one go about becoming an agent for you and have you as a mentor? 🙂

    • Mark Ferguson says:

      Hi Hunter! I actually have an agent joining our team who found my on the blog. If you want to apply you are welcome too! [email protected]

  • When I got started it took me about 6 months to make my first commissions… I became a top producer within my company in my second year. Then when the market crashed I struggled really hard for about 5 years but never quit.

    Now I am a consistent top producer with leads coming in on autopilot every day.

    The key is don’t quit and scale up what is working. Spend time on income producing activities and eliminate time wasters.

    • Mark Ferguson says:

      Hi Jason, Great comment.

  • Do you have to do anything different from just the basic real estate licensing to become a realtor? other than joining the NRA??

    • Mark Ferguson says:

      You have to take an ethics class and join your local bard of Realtors as well.

  • Sukina Johnson says:

    I am so inspired by you it is not even funny! I have a small amount of real estate ( 8 rental units). I have read a ton of your articles and you are totally awesome! Just want to thank you for inspiring me to keep going and focus on my goals for the rest of this year and the future! Your logic can be applied to any industry. Currently, I am expanding into areas in my profession that will leverage my time and expertise. It is going to be hardwork in the beginning but I know it will bring in several income streams in the future. I plan on taking the income streams and buying more property and dividend paying stock. Thanks and I am staying tuned! I have to see this 100 rental properties goal come true! I had the same idea but chickened out and listened to people who didn’t have goals or vision. It makes total sense to keep buying houses or in my case multi-units and using the cash flow to pay off the mortgages. I don’t think it is anything smarter than a good mix of risk and conservative investing.

    • Mark Ferguson says:

      THank you!Don’t let others who have no idea about real estate stop you

  • Joanne Chan says:

    Hi Mark , I like your sharing !
    Your sharing is inspiration and motivated !
    I’m a brand new agent for about 4 months .
    Although I’m not making that much money yet but I’m still have faith on this career .
    Thanks for your sharing .
    Can I have some other sharing like teaching us more about the skills to become a successful agent ?
    It would be very much appreciate if you can do that .

  • A mortgage loan originator and I deal with several Realtors throughout southern New Hampshire that make well over to $100,000 a year so it all depends on one’s ability sky’s the limit matter of fact I know many realtors in the Boston area then make a million + per year so all up to you

  • Do you think speaking Mandarin is a useful asset in this career?

  • Great article and video, was wondering if you know about the term bpo, broker pricing opinion. I am looking to get my license and am doing a lot research on this field. I am looking into investing and not just selling. I agree with you that agents these days don’t take advantage of all that is out there and I’m the guy that’s gonna jump in with both feet. Thanks and hope for a reply

  • Neil Patel says:

    Very positive attitude. Thanks

  • I have sales experience in the car world, how much would this help translating into the real estate world? Also, how many months of pay should I have as a cushion before I try to transition?

  • marianne bells says:

    AGENTS DO NOT MAKE GOOD MONEY! It’s all diceptional and then they want you to have more and more in the field so it looks like a great thing, but after spending start up costs usually most give it two years and quit. It costs so much and you end up with very little from the sale of a house after advertising MLS fee is 300.00 every quarter which we are low in Michigan, then 500.00 National Association Realtors, then 500.00 for Franchise fee, then 5% OF EACH SALE AS WELL BACK TO WHOMEVER YOU ARE WITH unless you go with a small broker. So average is 30,000 after two years and then take out all of your auto costs and other expenses. You run run run to get nowhere in this economy. So, 70 split with 30 going to broker you get this 100,000.00 (don’t forget after answering multiple offers and having the listing home question you and maybe hiring you fifty other agents). So, they want more and more because the National and Franchises need money, not good for agents they get nothing. 100000 X 7% 7,000 SOUNDS GREAT HAHAHA Then divide in two because the other agent that sold gets half so that’s 3500.00 then take out broker cost 30% 2450.00 then take out the 5% franchise -122.5 2327.50, then take out your Liability insurance about 130.00 2197.5, then don’t forget the giving the office does you choose so maybe -20.00 is 2177.50, then sign costs required at 50.00 so 2127.50. Now take out gas driving to and from time spent about 20 hours if you were making minimum wage so for this simple example say it’s 10.00/hr which is low. 200.00 so your time is valuable because if you can make double minimum wage you are better of NOT doing real estate. So, you now are down to 1927.50. Don’t forget making copies and handing out flyers, postcards, etc. They say the money goes to advertising, but only for the franchise. Anyone can pop up a website for free. So, generally by the time you are done you may make 1500.00 when commission is suppose to be 7,000.00. Everyone has their hand in the pot. Unless you have business contacts like Donald Trump and sell in New York, most agents make less than poverty and their “NEW CARS”, are all for show. Most can hardly pay their payments. I’ve watched it even some after 40 years. Why do they stay? I have no idea.

    • Mark Ferguson says:

      I would ask why you are still an agent if you feel that way as well. I know many agents who make a very good living

  • Hello Mark,

    I am a single mother of 3 and looking to get in real estate to provide more financial freedom as well as time with my children. I would love for you to do a seminar or something that would explain the “step-by-step” process. As the summer is approaching and I would like to be up and running by the time school starts in August 2017 if not sooner. Please advise!

  • You recommend finding the right broker to work for. What are the criteria? For example, how would I rate
    the quality of their training and mentoring? Also, the agent who brokered the house we bought has been in touch asking if my wife ever got her license (they casually discussed this during our house search). I always assume people have an angle. Wouldn’t another agent mean more competition for leads, or is the idea to bring more agents in to generate leads?

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