How much do new real estate agents make?
By the Steady Ground team ·
Thinking about selling homes? Then you want to know how much new real estate agents make. Here is the honest answer. Most make very little at first. Many make almost nothing in year one. That's not a reason to quit before you start. It's a reason to plan.
What new real estate agents make in year one
The National Association of Realtors, or NAR, asks its members about their pay. In a 2023 survey, it looked at agents with two years or less on the job. Here is what it found:
- They sold a median of 2 homes a year.
- 62% made less than $10,000.
- Their median pay was $8,000 for the year. That is before they paid for anything.
The median is the middle number. Half made more. Half made less.
Pay does get better with time. The typical NAR member made $59,200 in a year, before costs. The U.S. Bureau of Labor Statistics says the median for all agents is $52,830. But those numbers count people who have done this job for years.
Why the first year is so slow
Agents don't get a paycheck every two weeks. They get paid when a home sale closes. Closing is the last step, when the buyer gets the keys.
Getting there takes a long time. First, someone has to trust you with the biggest buy of their life. Then you help them find a home, or find a buyer for theirs. Then you wait weeks for the deal to close. Some deals fall apart at the end.
When a sale does close, your pay is part of the commission. That's the fee for the sale. Your brokerage takes its share first. The brokerage is the office you work under. You keep the rest. So your first check may come months after you start.
You spend money before you make money
Your license is only the first cost. You also pay to run your business. Here are common costs. Most of these are rough estimates, so ask for real prices where you live.
- MLS access: about $300 to $1,200 a year. The MLS is the list of homes for sale that agents use.
- Brokerage fees: $0 to about $500 a month. Some offices charge you even in months you sell nothing.
- NAR dues: $201 a year, plus state and local dues, if you join.
- Signs, a lockbox key and ads: about $200 or more a year.
All in, your first year can cost about $1,500 to $4,000 or more. For all NAR members, new and old, the median cost of doing business was $8,010 in 2024.
How new agents get through year one
- Keep your other job for now. Or save enough to pay your bills for a few months.
- Pick a brokerage that teaches you. Ask who will help you with your first contract.
- Tell everyone you know. Your first clients are often friends, family or people they send you.
- Host open houses. Other agents in your office may let you run theirs. It's a good way to meet buyers.
- Add costs slowly. Wait on paid leads and coaching until your deals start to close.
A newer rule about how agents get paid
Since August 2024, there's a new rule for agents who work with buyers through an MLS. You need a signed written agreement before you show someone a home. It has to say how much you'll be paid. It also has to say that your pay can be talked over and changed.
So learn to explain your fee in plain words. Buyers will ask about it.
Is real estate still worth it?
It can be. You get to be your own boss. Your pay can grow as more people know your name. The Bureau of Labor Statistics expects about 40,400 openings for agents each year.
But it is not a fast way to make money. If you need a steady check soon, start with a job that pays by the hour. Our page on honest ways to earn money this month can help. You can still study for your license on the side.
Ready for the full plan? Our real estate agent guide shows each step, the rules in your state and the questions to ask a brokerage. Not sure real estate fits you? Take our free career quiz.
Quick answers
Do new real estate agents get paid every week?
No. Most are paid part of the commission when a home sale closes. Your first check can take months.
How much does it cost to become a real estate agent?
Getting your license often costs about $300 to $1,200. The whole first year can cost about $1,500 to $4,000 or more once you add fees for the MLS and your brokerage.
Do real estate agents make more after the first year?
Most do, as more people know them. The typical NAR member made $59,200 in a year before costs, and the government's median for all agents is $52,830.
Where these facts come from
We checked these sources when we wrote this post. Rules and fees change, so check them before you pay for anything.