If you’re considering a career as a real estate agent, one of the first questions you might have is “How much does a real estate agent make in Maryland?” The answer, as with most professions, depends on a variety of factors.
This article will dive into the different aspects that influence the average real estate agent salary in Maryland, such as commissions, broker fees, and variable expenses. By gaining insights on your earning potential within the real estate industry, you can better assess your financial expectations and the rewards of pursuing a real estate career in this state.
Recommended: Interested in getting started? We recommend The CE Shop’s online study packages, which come with a money-back-guarantee and flexible pricing.
Real Estate Agent Salary Maryland
Many factors can impact a real estate agent’s salary in Maryland, including:
- Experience: The average salary of an agent in Maryland is $99,553 per year while first-year agents earn around $89,752 per year. More experienced real estate agents earn more because they have a larger network of clients, enabling them to close more deals and earn higher commissions
- Location: The location in which an agent works also plays a crucial role in their earning potential. Some areas in Maryland have higher property values, such as luxury residential real estate neighborhoods and commercial properties, which may translate into higher commissions per sale
- Sales Volume: The more properties an agent sells, the more they earn in commissions. This number largely depends on market conditions as well as an agent’s ability to secure clients
- Specialization: Agents who specialize in a particular type of real estate (e.g., luxury homes, commercial properties, or certain neighborhoods) may be able to charge higher commission rates and thus earn more
- Economic Conditions: During a booming market, real estate agents can make more sales and earn more. During an economic downturn, their sales may decrease
- Work Hours: A real estate career often requires working outside of traditional business hours, including evenings and weekends, which can impact an agent’s earning potential. Some real estate agents may earn more simply because they work more hours or are more available to their clients
While some of these factors are within an agent’s control (e.g., their work hours and any specialization), many aren’t (e.g., the state of the economy or property market in a certain location).
Interested in becoming a real estate agent? Check out our How to Get Your Maryland Real Estate License guide.
Real estate income is based on commissions — a percentage of a property’s sale price. The standard commission rate can vary, but it typically ranges from 5% to 6% in Maryland.
If a home sells for $400,000 and the commission is 6%, for example, the total commission would be $24,000. The buyer’s agent and the seller’s agent (also called a listing agent) will typically split this amount equally so each would earn $12,000 in this scenario. However, real estate agents usually have to share a portion of their commission with their brokerage firm. If they have a 70-30 split agreement, the agent would keep $8,400 while the brokerage firm would get the remaining $3,600.
Importantly, commissions don’t cover an agent’s work expenses like advertising, office supplies, licensing, or professional insurance. Agents must cover these separately and may receive reimbursement for them from their broker companies.
While real estate agents can earn a significant income, they also incur a variety of expenses associated with their work. Some examples include:
- Licensing Fees: Agents must take pre-licensing courses and pass an exam to get their real estate license. They also must complete ongoing education to maintain their licenses
- Marketing and Advertising Costs: Agents often pay out of pocket for marketing materials and advertising to attract clients and promote their listings. This can include professional photography, signage, online advertising, and more
- Office Expenses: While some brokerage firms cover office expenses, real estate agents often have to pay for their own office supplies, mobile data plans, and more
- Membership Dues: Many agents are members of local, state, and national real estate associations — all of which charge annual dues
These expenses can add up quickly and reduce the net income an agent takes home. As such, it’s important for anyone considering a career in real estate to factor in these costs when evaluating their potential earnings.
How to Become a Real Estate Agent in Maryland
In order to work as a real estate agent in Maryland, you must take several steps to kick-start your real estate career goals. These steps include:
- Complete pre-licensing education. First, you need to enroll in a Maryland-approved, real estate pre-licensing course. This course must be at least 60 hours long and cover real estate principles and practices.
- Pass the state licensing exam. After finishing your pre-licensing coursework, you must pass the Maryland real estate exam. It covers both state-specific and national real estate principles and practices.
- Undergo a background check and fingerprinting. Maryland requires a criminal background check and fingerprinting for all real estate license applicants.
- Find a sponsoring broker. You must find a licensed Maryland real estate broker who’s willing to sponsor you before you can work as an agent in the state. This broker will supervise and mentor you as you start your real estate career.
- Apply for your license. Once you pass the licensing exam and find a sponsoring broker, you can apply for your Maryland real estate salesperson license through the Maryland Real Estate Commission.
Obtaining a real estate license is mandatory in order to legally represent buyers and sellers in property transactions in Maryland. It also will ensure you have the necessary knowledge to guide your clients effectively.
For Maryland real estate pre-licensing education classes, StateRequirement recommends:
Real Estate Agent Salary Maryland FAQ
How much does a real estate agent in Maryland make?
The income of a real estate agent in Maryland varies based on factors like their experience, location, and sales volume. Currently, the average salary is around $99,553 per year. This can, however, be much higher or lower for individual agents. Find out how real estate agents get paid with our How Much Does a Real Estate Agent Make article.
How much does a realtor make in Maryland?
A realtor’s earnings in Maryland can mirror those of real estate agents because “realtor” is simply a term for agents affiliated with the National Association of Realtors (NAR). While their earnings vary widely based on factors like experience and sales volume, a realtor’s average salary in this state can range from $73,837 to $100,218.
What is the highest-paid type of real estate agent?
Luxury real estate agents or brokers — those who deal with high-end properties in affluent areas — are the highest-paid type due to their larger commissions on more expensive properties. Yet, it all depends on various factors like location, market demand, and specialization. Commercial real estate agents who deal with commercial properties also tend to have higher earnings.
How much does it cost to get a real estate license in Maryland?
The cost of getting a real estate license in Maryland typically includes pre-licensing education fees (around $200 to $500), the licensing exam fee ($61), and initial licensing fees ($110 for a salesperson or $160 for a broker). Looking to get the best deal out of your pre-licensing education? Check out our Best Real Estate Classes buyer’s guide.
How long does it take to get a real estate license in Maryland?
The timeline to get a real estate license in Maryland can vary. It typically takes several weeks to a few months to complete the pre-licensing education, pass the licensing exam, find a sponsoring broker, submit a license application, and receive approval from the Maryland Real Estate Commission.