You probably have a lot of questions about getting started in real estate, including “How do I become a real estate agent?” and “What does a real estate agent do?” Of course, you may also wonder how much the average new real estate agent makes.
It’s worth noting that some real estate professionals work for a set salary. However, most real estate agents work on commission, which is based on a percentage of the sale. Real estate agents are required to share their commissions with their brokerages. They are also responsible for paying their own income tax based on those earnings.
Now that you have a basic understanding of how real estate agents get paid let’s get into the details based on 2024 income data.
First-Year Real Estate Agent Starting Pay
According to Zip Recruiter data, the national average real estate agent starting pay is $85,793. Of course, this is dependent on many factors, including the following:
- Number of hours worked each week
- Local real estate market prices and condition
- Competition
- Niche
Other factors determine how much you will earn as a real estate agent, but they are harder to name. The highest-paid real estate agents are goal-oriented, driven, and have the “eye of the tiger.”
Top 10 States With the Highest First-Year Real Estate Agent Starting Pay
Since your local real estate market and economy have a lot to do with salary, look at the top ten states with the highest first-year real estate agent starting pay. You might be surprised by what states make the list!
| State | Starting Pay – Yearly | Starting Pay – Monthly |
|---|---|---|
| Oregon | $94,984 | $7,915 |
| Alaska | $94,906 | $7,908 |
| North Dakota | $94,599 | $7,883 |
| Massachusetts | $94,199 | $7,849 |
| Hawaii | $92,651 | $7,720 |
| Washington | $92,361 | $7,696 |
| Nevada | $89,734 | $7,477 |
| South Dakota | $89,406 | $7,450 |
| Colorado | $89,287 | $7,440 |
| Rhode Island | $87,978 | $7,331 |
Source: Zip Recruiter, January 2024
Real Estate Agent Starting Pay by Specialization
Many real estate agents start out without a specialization. While some work their entire careers in residential real estate, others specialize and focus on a particular type of client or property.
While the beginning salaries aren’t available for real estate agents specializing in a particular niche, here are the average salaries for each type of real estate professional.
| Specialization | Average Pay – Yearly | Average Pay – Monthly |
|---|---|---|
| No specialization | $64,071 | $5,339 |
| Property management | $129,338 | $10,778 |
| Short sales/foreclosures | $130,043 | $10,837 |
| Residential properties | $137,486 | $11,457 |
| Multi-family properties | $142,854 | $11,905 |
| Military | $143,406 | $11,951 |
| Relocation | $152,261 | $12,688 |
| Condos | $152,363 | $12,697 |
| Investment properties | $153,573 | $12,798 |
| Second/vacation homes | $160,379 | $13,365 |
| Commercial properties | $165,940 | $13,828 |
| Affordable housing | $168,940 | $14,078 |
| Luxury real estate | $183,482 | $15,290 |
| Foreign investment | $183,774 | $15,315 |
| Eco-friendly properties | $263,180 | $21,932 |
Source: McKissock Learning
Does this data on the average real estate agent starting pay and the average salary by niche confirm that you want to be a part of the real estate industry? The first thing you need to do is choose a real estate course in your state.
Colibri Real Estate is dedicated to training the next generation of agents. We offer pre-licensing education, exam prep materials, career training and resources, and continuing education. With flexible course options and quality educational materials, Colibri Real Estate is the right school for you.
Sources:
- McKissock. “How Much Does the Average Real Estate Agent Make?” McKissock Learning, February 18, 2022. https://www.mckissock.com/blog/real-estate/how-much-does-the-average-real-estate-agent-make/.
- What Is First Year Real Estate Agent Salary by State? – ZipRecruiter. Accessed January 19, 2024. https://www.ziprecruiter.com/Salaries/What-Is-the-Average-First-Year-Real-Estate-Agent-Salary-by-State.
