The median annual earnings, including commissions, of salaried real estate sales agents were $39,760 in May 2006. The middle 50 percent earned between $26,790 and $65,270 a year. The lowest 10 percent earned less than $20,170, and the highest 10 percent earned more than $111,500. Median annual earnings in the industries employing the largest number of real estate sales agents in May 2006 were:

Residential building construction $53,390
Land subdivision 49,230
Offices of real estate agents and brokers 39,930
Activities related to real estate 36,510
Lessors of real estate 32,580

Median annual earnings, including commissions, of salaried real estate brokers were $60,790 in May 2006. The middle 50 percent earned between $37,800 and $102,180 a year. Median annual earnings in the industries employing the largest number of real estate brokers in May 2006 were:

Offices of real estate agents and brokers $64,350
Lessors of real estate 61,030
Activities related to real estate 48,250

Commissions on sales are the main source of earnings of real estate agents and brokers. The rate of commission varies according to whatever the agent and broker agree on, the type of property, and its value. The percentage paid on the sale of farm and commercial properties or unimproved land is typically higher than the percentage paid for selling a home.

Commissions may be divided among several agents and brokers. The broker or agent who obtains a listing usually shares the commission with the broker or agent who sells the property and with the firms that employ each of them. Although an agent’s share varies greatly from one firm to another, often it is about half of the total amount received by the firm. Agents who both list and sell a property maximize their commission.

Income usually increases as an agent gains experience, but individual motivation, economic conditions, and the type and location of the property affect earnings, too. Sales workers who are active in community organizations and in local real estate associations can broaden their contacts and increase their earnings. A beginner’s earnings often are irregular because a few weeks or even months may go by without a sale. Although some brokers allow an agent to draw against future earnings from a special account, the practice is not common with new employees. The beginner, therefore, should have enough money to live for about 6 months or until commissions increase.

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