Real estate agents are a career with unlimited earning potential. So how much exactly do real estate agents make? Are real estate agents hourly paid? In the article below, we will explain in detail for you.

Are real estate agents hourly pay?

Most jobs are paid hourly or monthly, so you can calculate your income in advance. However, real estate agents’ salaries are not calculated by hour or by month but are usually paid by commission each time a property is sold. However, if you want to estimate a real estate agent hourly pay, consider the following:

• Commission structure: Real estate agents typically receive 5-6% of a property’s sale price, which is then split between the buyer’s and seller’s agents.
• Estimated hourly pay: According to the U.S. Bureau of Labor Statistics, the median annual income for real estate agents in 2022 was $48,340. If calculated as an hourly rate, this amounts to approximately $23.20. However, actual earnings vary greatly depending on location, experience, and market conditions.
• Work hours & Income fluctuation: Real estate agents often work irregular schedules, including evenings and weekends. Their income isn’t consistent, as they may earn significantly more during peak seasons and less during slower periods.

How much can real estate agents get paid per sale?

Real estate agents make money primarily from commissions. After a property is sold, the seller pays the real estate professional a 5%-7% commission. Typically, agents only get paid after a successful sale is completed. If something goes wrong before the sale is completed, the agent will not receive any payment. 

Both the buyer’s agent and the listing agent earn a commission for their role in the sale. However, they must work under a sponsoring broker and share their portion of the commission with them. Typically, the total commission is split 50-50 between the listing agent and the buyer’s agent. From there, each agent usually splits their half with their broker, often in a 50-50 arrangement. Newer agents may receive only 30% of their share, while more experienced agents sometimes pay a fixed “desk fee” to their brokerage and keep their entire commission. Although commission structures can vary, the most common setup results in each party receiving about a quarter of the total sale price. 

Factors that can affect a real estate agent’s hourly pay.

When evaluating real estate agent hourly pay and how real estate agents get paid, several key factors influence their earnings.

• Market Conditions: An agent’s income depends heavily on their local real estate market. In high-demand areas with expensive properties, agents can earn larger commissions per sale. In slower markets, fewer transactions may result in lower overall earnings.
• Experience & Specialization: More experienced agents, especially those specializing in luxury homes or niche markets, often command higher commissions and fees. Their expertise allows them to close more deals and attract higher-paying clients.
• Sales Volume: The more transactions an agent completes, the higher their overall earnings. Agents who consistently close multiple deals each month will naturally make more than those with sporadic sales.
• Brokerage Fees & Commission Splits: Real estate agents work under a sponsoring broker, which affects how much they take home. Some agents negotiate better commission splits, allowing them to retain a larger portion of their earnings. Others accept higher brokerage fees in exchange for more resources and support. Additionally, a buyer’s agent may negotiate directly with their client for a more favorable commission.

Since agents typically earn commissions rather than an hourly wage, real estate agent hourly pay can vary widely depending on these factors.

How can real estate agents increase their income?

For new agents, increasing real estate agent hourly pay can be a challenge, as building a steady income in real estate takes time and effort. One of the best ways to boost earnings is by expanding your sphere of influence—the network of people who trust you and may refer potential clients.

Establishing trust with strangers isn’t easy, but even a small group of satisfied clients can lead to valuable referrals. Since most people don’t buy or sell homes frequently, maintaining long-term relationships is key to securing future deals. Successful agents continuously grow their network to ensure a steady flow of business.

A great way to expand your sphere of influence is by getting involved in community groups, charities, or hobby clubs. Volunteering or participating in regular meetups helps build authentic connections. Over time, these relationships can lead to new opportunities—when someone in your network needs a real estate agent, you’ll be the first person they think of. By consistently growing your network, you can increase your deal flow and, ultimately, improve your real estate agent hourly pay.

FAQ

Are real estate agent commissions negotiable?

Yes, real estate agent commissions are negotiable. While the standard rate is around 5-7%, factors like market conditions, agent experience, property price, and services offered can influence flexibility. Sellers can negotiate lower fees, especially for high-value homes or multiple transactions. Discount brokerages and FSBO options also provide alternatives. However, a good agent can justify their commission by securing a better sale price and smoother transaction.

Do agents make more money if they represent buyers and sellers?

Yes, agents can make more money if they represent both the buyer and the seller in a transaction, a practice called dual agency. In this case, they may earn the full commission instead of splitting it with another agent. However, dual agency can create conflicts of interest, as the agent must remain neutral between both parties.

Does the agent’s experience and specialization affect how much they make?

Yes, an agent’s experience and specialization significantly impact their earnings. Seasoned agents often close more deals, attract high-value clients, and negotiate better commission splits. Those specializing in luxury homes, commercial real estate, or niche markets can command higher fees due to their expertise and network. As a result, experience and specialization often lead to higher overall income in real estate.

Do I have to pay the agent’s commission if the house doesn’t sell?

No, in most cases, you don’t pay the agent’s commission if the house doesn’t sell. However, this depends on the terms outlined in your listing agreement. Some agreements may include fees for marketing or early termination. Always review the contract carefully and clarify any concerns with your agent before signing.

In short, real estate agents do not pay hourly wages but commissions after selling products. Therefore, the salary of real estate agents is not fixed. In the above article, we also suggest ways to earn more, hope it will help you.