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Author: Justin Nabity

Last updated: January 21, 2025

Real Estate

How Much Do Realtors Make: State-by-State Comparison & Fee Breakdown

With their deep involvement in real estate transactions, realtors are a major cog in the industry’s machine, ushering sellers and buyers to help them close real estate deals.

But how much do realtors make in different states in the country? What is their commission, and who pays them?

Physicians Thrive reveals it all.

Key Takeaways

  • Realtor commissions are typically 6%, split between buyer and seller agents.
  • Sellers pay commissions, which are further divided between agents and brokerages.
  • Realtor earnings vary by state, with urban areas yielding higher incomes.
  • Marketing, brokerage fees, and operational costs affect realtors’ take-home pay.

Realtor Commission Breakdown

A realtor’s fees are based on a fixed commission split that sees the buyer’s agent and listing agent equally share 6% of the final sale price.

The seller pays out this 6% commission, of which the brokers on the seller agent’s side take a cut from the real estate agents that closed the deal.

The agreed ratio varies based on existing market trends, the agents’ experience level, and other factors.

Here’s an example of the commissions realtors earn based on the listed selling prices of property.

Home PriceCombined 5.8% Fee2.9% Listing Agent Fee2.9% Buyer’s Agent Fee
$100,000.00$5,800.00$2,900.00$2,900.00
$150,000.00$8,700.00$4,350.00$4,350.00
$250,000.00$14,500.00$7,250.00$7,250.00
$350,000.00$20,300.00$10,150.00$10,150.00
$450,000.00$26,100.00$13,050.00$13,050.00
$550,000.00$31,900.00$15,950.00$15,950.00
$750,000.00$43,500.00$21,750.00$21,750.00
$850,000.00$49,300.00$24,650.00$24,650.00
$950,000.00$55,100.00$27,550.00$27,550.00
$2,000,000.00$116,000.00$58,000.00$58,000.00

Can You Negotiate Realtor Commissions?

Most real estate agents will allow you to negotiate to some extent if you’re on a tight budget but note that cheaper services don’t guarantee the best results.

A lower budget limits your realtor’s ability to effectively find high-paying buyers. This applies to the buyer’s agent as well.

While ideal, securing a reduced realtor commission may also affect the realtor’s loyalty. The realtor now has less incentive to find the best property deals and offers for clients.

How Much Do Real Estate Agents Actually Earn?

Some statistics show that real estate agents take home a national average of $54,300 per month, while real estate brokers earn a median annual salary of $63,060.

Commissions and other fees outlined in the listing agreement may bump this figure up, which could explain why other sources list figures as high as $101,178.

Other factors like experience, networking, and business costs further determine their full earnings.

How Much Do Realtors Earn in the USA?

Real estate agents and brokers in the USA earn varying amounts depending on factors like location, existing market conditions, and operational costs.

Here’s a breakdown of the estimated average earnings for real estate agents and brokers on a state-by-state basis:

StateReal Estate Agent SalaryReal Estate Broker Salary
Alabama$74,556$97,167
Alaska$84,024$102,006
Arizona$76,653$99,901
Arkansas$64,013$76,842
California$85,825$88,972
Colorado$81,325$97,488
Connecticut$75,032$92,496
Delaware$93,913$92,256
Florida$61,467$80,106
Georgia$69,455$90,517
Hawaii$81,292$99,090
Idaho$82,265$84,954
Illinois$75,016$90,050
Indiana$78,272$102,011
Iowa$74,625$92,923
Kansas$70,029$85,790
Kentucky$67,331$80,992
Louisiana$68,291$85,635
Maine$83,600$87,109
Maryland$90,887$89,409
Massachusetts$84,775$102,168
Michigan$67,394$80,760
Minnesota$78,217$98,084
Mississippi$74,380$91,145
Missouri$72,444$86,664
Montana$75,499$98,396
Nebraska$88,762$87,679
Nevada$79,448$96,449
New Hampshire$80,974$86,613
New Jersey$82,215$105,021
New Mexico$78,023$98,910
New York$90,773$97,342
North Carolina$70,217$84,048
North Dakota$82,840$101,065
Ohio$76,097$95,715
Oklahoma$85,960$84,910
Oregon$82,873$101,274
Pennsylvania$83,146$89,181
Rhode Island$76,762$93,804
South Carolina$71,696$85,819
South Dakota$78,292$95,517
Tennessee$72,652$91,387
Texas$81,859$84,283
Utah$72,597$90,853
Vermont$88,900$94,804
Virginia$92,296$91,171
Washington$100,261$102,627
West Virginia$64,214$68,876
Wisconsin$81,220$102,885
Wyoming$79,478$104,259

What Determines How Much Realtors Can Earn?

Commissions are only a part of the overall earnings. The exact amount that the buyer’s agent, listing agent, and their brokerages vary based on these factors:

1. Location

Real estate agents and brokers make more money in urban centers, where fast-growing commercial, residential, and luxury real estate increases their average salary.

Compared to places like Los Angeles, New York, and Atlanta, real estate agents in small towns in Kansas and Nebraska earn a reduced median gross income.

2. Marketing Capacity

The best real estate brokers are market experts who incorporate photos, charts, and key stats from the real estate industry to help property owners understand their home’s sale price.

The cost of professional videography, home shoots, and virtual tours can also drive up the overall cost of a realtor’s services.

While access to such services increases one’s chances of making well-timed real estate market decisions, it also increases the overall cost of hiring real estate professionals.

3. Brokerage Fees

As real estate agents have to work within brokerages, the final agreed fee paid to the seller’s brokerage is split between the institution and the agent.

A typical arrangement sees 60-40 splits in favor of the facilitating agent, but other arrangements are also possible.

What Costs Do Realtors Bear?

Various costs find their way into realtors’ budgets, with rewards expected only when a property has been sold. These include the cost of online ads, listing, virtual home tours, home staging, and open house flyers.

Other property sales fees, such as outdoor adverts, office supplies, and networking costs, affect a property’s final selling price.

Navigate the Real Estate Market With Physicians Thrive

Real estate agents and their brokers are just one category of professionals specialized in real estate marketing, doing more than just linking buyers with sellers.

As a physician looking to purchase a new home, sell an existing one, or explore rental opportunities in real estate, you need trusty estate planners and property managers who do more than just link buyers with sellers.

Physicians Thrive boasts years of experience in real estate investments geared towards leveraging the unique career opportunities available for professional physicians.

Whether you’re looking to purchase commercial real estate to launch your private practice or buy a new home, you can leverage our industry knowledge to guide your next investment.

Get started with our expert services today!

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