Real estate is a dynamic industry that offers promising opportunities for those interested in becoming real estate agents. One common question aspiring agents often ask is, “How much money does a real estate agent make a week?”
If you’re curious about how much money an agent can make in a week and want to calculate the annual income based on a weekly estimate, this article will guide you through the process.
By understanding the factors involved, including commission rates and variable expenses, you can gain insights into an agent’s potential earnings.
How Much Money Does a Real Estate Agent Make a Week?
Real estate agents typically earn a commission on each successful transaction. The commission rate is usually a percentage of the property’s sale price and can be around 5% to 6%.
For our example, let’s start with the annual median income figure of $49,980, which represents the midpoint of the income range for real estate agents.
To calculate the weekly income, divide the annual median income by the total number of weeks in a year (52). In this case, $49,980 divided by 52 gives us a weekly income of approximately $961.15.
Note that this is a simplified calculation, and actual incomes may depend on factors such as experience, market conditions, commission rates, and individual performance.
Factors Affecting Real Estate Agent Salary
Real estate agent salaries differ due to various factors. Here are some key factors that influence real estate agent salary:
- Experience: Currently, an agent’s national average salary is around $86,356 per year. Experienced agents who have been in the industry for a longer time tend to earn higher salaries
- Location: The location of the agent’s market plays a role in determining their weekly income. Real estate markets in high-demand areas or metropolitan cities generally offer higher earning potential due to higher property prices
- Transaction Volume: The number of transactions closed in a week directly affects an agent’s income. Agents who consistently close more deals per week will earn higher incomes
- Specialization: A luxury agent or broker, commercial real estate agent, or anyone specializing in niche markets (luxury residences, commercial properties, rentals, etc.) may have higher earning potential due to high-value transactions
- Market Conditions: The local real estate market, whether it’s a buyer’s market or a seller’s market, can impact an agent’s income. During a seller’s market with limited inventory and high demand, agents may have more opportunities to close deals and earn higher commissions
These factors are not exhaustive, and each agent’s income will vary based on their individual circumstances and efforts. Additionally, market fluctuations and economic conditions can impact an agent’s commission rates and other work-related expenses.
Real estate agents do not typically receive a regular weekly salary or income like employees in traditional jobs. Instead, their income is based on commissions earned from successful transactions.
The frequency and timing of receiving income depends on when transactions are closed and when commissions are paid. Agents may experience periods with more or fewer closings, leading to varying income levels throughout the year.
When a property is sold, the seller and buyer typically pay commissions to their agents (seller’s agent and buyer’s agent). The commission is a percentage of the final sale price and ranges from 5% to 6% of the sale price (this can vary).
Let’s assume an agent commission rate of 5% for our example. If a property sells for $500,000 with an agent commission rate of 5%, the total commission would be $25,000. The total commission is split between the seller’s agent (listing agent) and the buyer’s agent. Each agent will receive $12,500.
Real estate agents typically work under a licensed brokerage. The brokerage may charge a fee or commission split from the agent’s earnings. If an agent has an agreement with their brokerage where they receive 70% of the earned commission, the agent would get $8,750, and the broker would receive $3,750 (30% of the commission).
The actual commission rates and fees can differ based on regional practices, market conditions, and negotiations.
For more information, check out our How Much Commission Does a Real Estate Agent Make article.
Variable expenses can impact a real estate agent’s salary by reducing their overall income. Here are some common variable expenses that may affect a real estate agent’s salary:
- Licensing Fees: Agents are required to keep their license active and in good standing by completing continuing education (CE) requirements and paying renewal fees
- Marketing and Advertising Costs: Real estate sales agents often invest in marketing materials, online advertising, professional photography, signage, and other promotional activities to attract clients and showcase their listings. These expenses may vary depending on the scale and reach of your marketing efforts
- Association and MLS Fees: Agents typically join local real estate associations, such as the National Association of Realtors (NAR), and multiple listing services (MLS). Membership fees and MLS subscription costs are variable expenses that agents need to consider
- Office Expenses: Most real estate agents have office-related expenses such as office rent, utilities, office supplies, phone bills, internet fees, and software subscriptions for real estate management systems or customer relationship management (CRM) tools
Real estate agents should track and manage their variable expenses effectively to ensure they align with their income and overall financial goals. By carefully monitoring and controlling these expenses, you can optimize your earnings and maintain your profitability in the real estate industry.
How to Become a Real Estate Agent
Becoming a real estate agent involves a series of steps and requirements. Here is a general guide on how to become a real estate agent:
- Complete pre-licensing education. Enroll in a pre-licensing real estate education program approved by your state’s real estate commission or other governing authority. The number of required hours and course content depends on your state. The courses cover topics such as real estate principles, contracts, property management, and legal regulations.
- Take and pass the licensing exam. After completing the pre-licensing education, you will need to pass a licensing exam administered by your state. The exam typically includes both national and state-specific sections.
- Get a fingerprint-based background check. Background checks and fingerprinting may be required as part of the application process. Your state will provide instructions on how to obtain and send your fingerprints.
- Find a brokerage. You must work under a licensed real estate brokerage. Research and approach different brokerages to find the right fit for you.
- Apply for a license. Submit your license application to the appropriate regulatory agency, along with the necessary documentation and fees.
- Complete post-licensing education. Some states require post-licensing education that must be completed within a specific time frame after getting your license. These requirements may include additional coursework or training hours.
Getting a real estate license is essential for unlocking earning potential as it allows access to industry opportunities, higher commissions, and professional credibility.
For real estate pre-licensing education classes, StateRequirement recommends:
Alternatively, we recommend you check out our state-specific Real Estate Agent Licensing page.
How Much Does a Real Estate Agent Make a Week FAQ
How much does a real estate agent make a week?
The weekly income of a real estate agent depends on factors such as commission rates, transaction volume, individual skills and performance. Incomes can range from a few hundred dollars to several thousand dollars per week. See above for more information.
How much does a real estate agent make per sale?
The amount an agent makes per sale, in terms of commission, depends on the agreed-upon commission rate, the property sale price, and any split with the brokerage. Commission rates usually range from 5% to 6%, with agents earning a percentage of the sale price. For more information, see our How Much Does a Real Estate Agent Make Per Sale article.
How much does a real estate agent make per year?
According to the US Bureau of Labor Statistics, the current median annual wage for real estate agents was $49,980. An agent’s average annual salary depends on many factors (mentioned above), including commissions to business expenses. For an overview on an agent’s annual income, visit our How Much Does a Real Estate Agent Make Per Year article.
How much do real estate agents make a month?
Agents can earn anywhere from a few thousand dollars to several tens of thousands of dollars per month. To compute how much agents make in a month, multiply the agent’s average commission per real estate transaction by the number of transactions closed in a month.
Do real estate agents get paid if they don’t sell?
Agents only earn a percentage of the sale price when a transaction successfully closes. If an agent doesn’t sell any properties, they do not get paid. Real estate professionals can arrange a fixed salary (for ex. property manager or real estate consultant). Check out our Real Estate Agent Salary article for information on the average real estate agent