If you’re considering a career in the real estate industry, you might wonder “How much does a real estate agent make in Florida?” Florida’s dynamic real estate market continues to present enticing opportunities for both aspiring and seasoned agents.

This article provides an overview of the key factors that can influence a real estate agent’s salary in Florida to help you determine your career path, optimize your earning potential, and set realistic income expectations.

Real Estate Agent Salary Florida

Various factors can impact the potential earnings of real estate agents, including:

• Experience: Real estate agents with more years of experience can earn an average salary of $71,720 per year. Entry-level agents in Florida can expect to make an annual average income of $56,347
• Location: Some areas in Florida have higher property values or more active real estate markets, which can result in higher commission rates for local agents
• Transaction Volume: The number of properties an agent helps their clients sell or buy in a given year will directly impact their income. More transactions closed means more commissions
• Market Conditions: In a seller’s market, agents may close more transactions and for higher prices — both of which can increase their income. During a buyer’s market or periods of economic recession, an agent’s income may decline
• Work Hours: Agents who put in more hours often have the ability to handle more clients and close more deals. That greater number of hours worked allows them to earn more commissions

A real estate agent’s salary can fluctuate significantly due to the nature of their commission-based income. You might earn more when prices are high and transactions are frequent, but your income may decrease during slower markets or economic downturns.

Understanding Commissions

Real estate agents typically work on a commission basis, earning a percentage of a property’s sale price when they complete a transaction. The specific rate can vary, but it’s often around 5% to 6%.

The buyer’s agent and the seller’s agent generally split this commission so each could receive about 2.5% to 3% of the sale price. The agents’ brokerage firms also may take a portion of the commission, depending on an agent’s agreement with their broker.

Let’s say a home sells for $300,000, for example, with a commission rate of 6%. The total commission for the transaction would be $18,000. If the buyer’s and seller’s agents split this equally, each would receive $9,000 before any brokerage fees. If an agent’s agreement with their brokerage firm includes a 70-30 split, the agent would keep $6,300 while the broker would receive the remaining $2,700.

All of these numbers can vary, depending on the specific circumstances of each transaction. Commission rates are negotiable and not set by law, and the way agents and brokers split a commission can depend on many factors.

Variable Expenses

Real estate agents often incur a range of variable expenses in the course of their work. Some common expenses include:

• Licensing Fees: Agents need to maintain their real estate license, which may involve paying renewal fees. Agents also typically need to take continuing education (CE) courses to stay updated on current laws and market trends, which can come with additional costs
• Office Expenses: These may include costs for maintaining an office space (if the agent doesn’t work from home), office supplies, computer equipment, software (e.g., a customer relationship management application), and telecommunications services
• Marketing Costs: These may include expenses for online and print advertising, direct mail campaigns, signage, professional photography, virtual tours, and other marketing materials. The total cost can vary based on the scale and frequency of an agent’s marketing efforts
• Membership Dues: Agents may choose or be required to join local, state, or national real estate associations, which typically charge annual dues

These expenses can fluctuate from month to month and depend on an agent’s level of business activity. Agents should carefully track their expenses for tax purposes and budgeting.

How to Become a Real Estate Agent in Florida

In order to legally work as a real estate agent in Florida, you first need to obtain a real estate license. Here are the key steps you must take to get your license:

1. Complete a pre-licensing course. The state of Florida requires prospective agents to complete a 63-hour, pre-licensing course from an approved provider. This course will cover topics like real estate law, property management, and more.
2. Pass the pre-licensing course final exam. After completing an approved pre-licensing course, you must pass the course’s final exam.
3. Get a fingerprint-based background check. Florida requires that all applicants undergo a fingerprint-based background check before applying for a real estate license.
4. Submit an application to take the state exam and obtain a license. After passing your pre-licensing course, you’ll need to submit an application to the Florida Department of Business & Professional Regulation (DBPR).
5. Pass the Florida Real Estate Sales Associate Exam. Once the state approves your application, you can schedule a time to take the state licensing exam. This exam will test your knowledge of basic real estate principles and Florida-specific laws.
6. Activate your license. After passing the exam, you can activate your license through the Florida DBPR online services portal. You can’t work as a real estate agent until you activate your license.
7. Find a sponsoring broker. To legally practice as a real estate agent, you must be associated with a licensed Florida real estate broker. This broker will guide you through your initial period within the industry, helping you navigate transactions and understand practical aspects of the profession.
8. Complete post-licensing education. Once you have your initial license, you must complete a 45-hour, post-licensing course during your first license renewal period — the first 18 to 24 months after receiving your license.

Obtaining a real estate license in Florida not only allows you to conduct real estate transactions, but also establish your credibility and competence within the industry.