Working toward a career in real estate can be an enticing prospect — particularly in areas with a robust housing market like Connecticut. One common question potential agents ask is, “How much does a real estate agent make in Connecticut?”.

This article covers the average real estate agent salary in Connecticut along with the major factors influencing an agent’s earnings like experience, location, and market trends.

If you’re considering a career in Connecticut’s real estate industry, our guide will give you a realistic understanding of your potential income.

Real Estate Agent Salary Connecticut

Several factors can affect the salary of a real estate agent in Connecticut, including:

• Experience: A real estate agent’s experience level can significantly impact their income. The average salary of top agents in this state is around $86,645 while newer agents can earn as much as $67,526 per year
• Location: Certain areas in Connecticut may have a higher demand for real estate, which can result in increased sales volume and higher commissions
• Sales Volume: The number of transactions an agent closes and the corresponding commissions they earn will directly impact their average salary
• Market Trends: During periods of strong market activity and rising property prices, agents often have more opportunities to make sales and earn higher commissions
• Specialization: Real estate agents who specialize in a particular type of property or market segment, such as luxury homes, commercial properties, or rental properties, may reap incredible rewards due to higher fees and commissions
• Work Hours: Real estate agents often have flexible work hours, but the amount of time and effort they dedicate to their work can directly influence their income

Note: Market fluctuations can impact a real estate agent’s salary by influencing the demand for properties, which can affect property prices and transaction volumes. This can then affect the number and value of transactions an agent can close and their resulting commissions.

Understanding Commissions

The average commission rate for real estate agents is around 5% to 6% of a property’s selling price, which the listing agent and the buyer’s agent usually split between themselves.

If you sell a home in Connecticut for $300,000 and the agreed commission rate is 6%, for example, the total commission would be $18,000. Because buyer’s and seller’s agents typically split a commission equally, each agent would receive $9,000.

Please note that the actual commission can vary and could be higher or lower than the example numbers mentioned above. Moreover, agents don’t always split a commission 50-50. 

Many agents also work for a broker who takes part of each commission. You could have a 50-50 split, a 60-40 split, or some other percentage with your broker. As you gain experience and make more sales, this split could grow more favorable like a 70-30 or 80-20 split between you and your brokerage firm. 

Some real estate agents also may charge a flat fee instead of earning a percentage-based commission. 

Variable Expenses

Real estate agents often incur a variety of expenses in the course of their work. Some of these include:

• Licensing Fees: Maintaining a real estate license involves several costs, including continuing education and post-licensing education course fees.

• Marketing and Advertising Costs: This can include everything from business cards, promotional materials, and website maintenance to online advertising on digital platforms and home staging costs.
• Office Expenses: If an agent doesn’t work from a broker’s office, they may incur home office expenses like office supplies, computer equipment, software, and furniture.
• Technology Fees: Working in today’s real estate market often requires various tools and software. This can include customer relationship management (CRM) software, Multiple Listing Service (MLS) access, virtual tour software, and more.
• Professional Membership Dues: Many real estate agents choose to join local, state, or national real estate associations like the National Association of Realtors (NAR), which have annual membership dues.

An agent’s exact expenses will vary, depending on their specific business model and practices. It’s important to keep track of these business expenses because they’re often tax-deductible, which can reduce an agent’s overall tax burden.

How to Become a Real Estate Agent in Connecticut

To work as a real estate agent in Connecticut, you must first obtain a real estate license. That requires taking these five steps:

1. Complete pre-licensing education. You must start by completing 60 hours of pre-licensing education from an approved real estate school.
2. Pass the licensing exam. After you complete your pre-licensing course, you can register to take the Connecticut real estate salesperson exam. You must pass both the state and national portions of the exam. If you pass one section and fail the other, you only need to retake the section you failed.
3. Find a sponsoring broker. Once you pass the exam, you’ll need to find a sponsoring broker. This is a licensed real estate broker who’ll provide sufficient support and guide you through the initial stages of your real estate career.
4. Apply for your license. After you pass the exam and find a sponsoring broker, you can submit your application for a salesperson license to the Connecticut Department of Consumer Protection – Real Estate Commission. You must include proof that you completed the pre-licensing course, your passing exam scores, and information about your sponsoring broker.
5. Complete post-licensing education. Connecticut requires newly licensed agents to complete a 15-hour, post-licensing course within the first year of licensure.

Getting a real estate license in Connecticut legitimizes your practice and grants you legal authority to represent buyers and sellers in property transactions. It also ensures you comply with state laws.