real estate woman with for sale sign

Since the real estate industry is thriving, the job opportunities in this field are expanding as well. Even though becoming a successful real estate agent is not easy, more and more people want to give it a try. With dedication and hard work, real estate agents in San Pedro can make money in no time.

A lot of people these days want to know how much a real estate agent makes. Are you one of these people? If yes, then this post is for you.

Real Estate Agents: How Much Money Do They Make?

The vast majority of real estate agents are commission-based. This means they earn most of their income when they help to buy or sell a property. In general, when someone sells a home with the help of an agent, the seller will need to pay a five to six percent commission on the home’s sales price. The commission is divided between the buying agent and the selling agent.

On average, an agent will receive $7500 when selling a home worth $250,000. Keep in mind that this is just an estimate. The real estate agent may earn more or less.

Factors That Affect the Salary of Real Estate Agents

1. Location

While the percentage rate of the commission tends to stay in the 3 to 6 percent range, the dollar amount of the commission depends significantly on the agent’s location and the average sales cost in the community.

2. Size of Network

In case you didn’t know, real estate is a relationship-based business. Selling properties is directly connected to how well you make connections and network and your capacity to transform these connections into transactions.

If you’re just getting started, this could difficult. So, if possible, try to connect with at least five people every day. Then develop your circle of influence in order to maximize your potential earnings.

3. Expenses

Since most real estate agents are independent contractors, they are usually responsible for paying for their professional liability insurance, health insurance, advertising and marketing services, MLS fees, continuing education, internet services, vehicle expenses, and other expenses related to real estate.


Based on the information provided above, we can safely assume that real estate agents do not all make the same amount of money. The money they make will depend on their abilities, time, and commitment.

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We hope you found this blog post How Much Does A Real Estate Agent Make? useful. Be sure to check out our post How To Be Successful As A Realtor: First Year Tips for more great tips!


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