How to make money as a realtor, How Much Money Do Real Estate Agents Make Each Year?
The vast majority of real estate agents are commission-based agents. That means that they earn most or all of their income when they sell or help buy a house.
The commission is then split between the selling agent and the buying agent. Of course, the commission may be split among more than just the buyer and seller.
Then, the broker i. Real estate agents also need to pay for their own expenses including driving customers around, professional association fees, signs, advertising expenses, and other expenses. With so much money riding on each transaction, the real question is: how many transactions can a real estate agent complete each year?
On average, members of the National Association of Realtors complete 12 transactions each year. However, these real estate agents have an average of 10 years of experience. Newer real estate agents will likely sell even fewer houses, and have lower incomes.
It is important to note that some real estate agents only work on a part-time basis, but most work a full 40 hours per week. In particular, real estate agents need to be very careful to watch their expenses, especially advertising expenses on sites such as Zillow which can eat up a huge chunk of profits.