As you consider a career in real estate in the “Buckeye State,” one question on your mind likely is, “How much does a real estate agent make in Ohio?” This state offers a favorable market for real estate agents with a steady and diverse housing market that provides many opportunities for success.
Understanding your potential income is crucial for making informed decisions about your career. The annual salary of real estate agents can vary based on several factors, such as their experience and transaction volume as well as market conditions.
This article covers the average real estate agent salary in Ohio plus the factors that can influence their take-home pay like commission rates and additional business expenses.
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Real Estate Agent Salary Ohio
In Ohio, many factors may influence a real estate agent’s salary. Some examples include:
- Experience: The average salary of real estate agents in Ohio is $78,417 per year. Agents who’ve worked in the field for a longer period tend to have greater market knowledge, more clients, and new leads, which enables them to secure higher commissions
- Location: Areas with higher property values, such as Columbus and Cleveland, have high turnover rates that enable real estate agents to earn more than agents working in slower or lower-priced markets
- Sales Volume: The most influential factor in determining an agent’s salary is the number of properties they sell and the total dollar amount of those transactions. Agents who sell more properties or handle higher-value sales can earn more money
- Working Hours: Real estate often requires working outside the typical office hours. Agents willing to work evenings, weekends, and holidays may have more opportunities to earn commissions
- Specialization: Agents who specialize in certain types of property (e.g., luxury or commercial) or who offer specific services (e.g., property management) may earn more than generalist agents, depending on market conditions and demand for their specialties
- Market Demand: Agents likely will complete more sales in a booming market while sales may decline in a slower market
Many real estate agents are self-employed or independent contractors who can work at home, remotely, or in an office setting. Some even hold inside sales agent roles in which they work with clients via phone or online instead of meeting them in person.
Their income isn’t usually the same as their after expenses, which can include licensing fees, membership dues, marketing costs, and other business expenses.
Interested in becoming a real estate agent? Check out our How to Get Your Ohio Real Estate License guide.
A real estate agent’s commission is a percentage of a property’s sales price. While the percentage can vary, the standard rate typically falls between 5% and 6%. The listing agent (also known as the seller’s agent) and the buying agent then split the commission.
If a home sells for $500,000 with an agreed-upon commission rate of 6%, for example, the commission for the sale would total $30,000. Assuming the buyer’s and seller’s agent split that commission evenly, each would receive $15,000.
Then, another split often happens between the agents and their brokerage companies. Newer agents might have a 50-50 split agreement with the broker while experienced agents may have a more favorable, 70-30 split agreement.
If one of the agents in our example above has a 50-50 split agreement with their broker, they’d keep $7,500 of the $15,000 commission with the rest going to their broker. If they instead have a 70-30 split, the agent would keep $10,500 while the broker would get the remaining $4,500.
Agents also must pay for other business expenses, such as advertising costs, licensing fees, and association dues. Moreover, they may not always split commissions evenly with the other agent involved in a transaction. Some might even offer discounted commissions under certain circumstances.
Real estate agents — especially those who’re self-employed — often incur a variety of variable expenses associated with their work. Some common examples include:
- Licensing Fees: Agents must renew their real estate licenses periodically, and most states require licensees to complete continuing education (CE) requirements. Both of these activities come with fees
- Real Estate Association Dues: Membership in local, state, and national professional associations usually requires the payment of annual dues. Agents also may subscribe to multiple listing service (MLS) databases, which can carry additional fees
- Marketing Costs: This can include costs for website maintenance, digital advertising, print materials (e.g., flyers and postcards), signage, professional photography, staging, open houses, and other promotional activities. The amount an agent spends on marketing can vary widely based on their specific strategies and local market conditions
- Office Expenses: These can include rent for office space (if it’s not provided by an agent’s broker), office supplies, equipment, software subscriptions, and utilities. This also could involve the cost of setting up and maintaining a home office, if that’s where an agent conducts a significant portion of their business
The variability of these expenses means that two agents with the same gross income can have significantly different net incomes.
Successful agents must, therefore, not only know how to generate sales, but also how to manage their business expenses effectively.
How to Become a Real Estate Agent in Ohio
Becoming a real estate agent involves a number of steps, which can vary from one state to another. Here are the general steps you must take to get a real estate license in Ohio:
- Complete pre-licensing education. You’ll need to complete 120 hours of approved real estate education. This usually involves coursework on topics like real estate law, finance, and property management.
- Submit your license application. Before you can qualify to take the real estate exam, you must fill out the salesperson license application. The Ohio Department of Commerce’s Real Estate & Professional Licensing (REPL) division will process your completed application, and then send your information to the state-approved testing vendor.
- Get a fingerprint-based background check. After submitting your application, you must provide your fingerprints and complete a background check.
- Pass the Ohio real estate exam. After you complete your application requirements, REPL will grant you your exam eligibility. You must pass the Ohio real estate exam, which measures your knowledge of real estate practices, laws, and terminology.
- Complete post-licensing education. In your first year of licensure, you must complete 20 hours of post-licensing education courses. These classes are similar to the pre-licensing education you completed before your exam.
Obtaining a real estate license in Ohio is important because it allows you to represent buyers and sellers in property transactions, enabling you to earn commissions and build a career in real estate.
For Ohio real estate pre-licensing education classes, StateRequirement recommends:
Real Estate Agent Salary Ohio FAQ
Do real estate agents make good money in Ohio?
Real estate agents in Ohio can earn a good income, but the amount will vary based on factors like an agent’s experience and sales volume along with market conditions. Currently, agents in Ohio make an average annual income of $78,417. For more details on real estate agent salaries, go to our Real Estate Agent Salary page.
How much do realtors make in Ohio?
A realtor in Ohio can earn as much as $92,033 per year. While some realtors may earn a modest income, established realtors in Ohio can make well over six figures annually. A realtor is a real estate agent who belongs to the National Association of Realtors (NAR).
What is the highest-paid type of real estate agent?
The highest-paid type of real estate agent can vary, depending on various factors like location, market conditions, additional skills, and specialization. In general, luxury residential real estate agents, commercial real estate agents who specialize in high-end properties, and top-performing agents in competitive markets tend to earn some of the highest incomes in the industry.
Is Ohio good for a real estate career?
Ohio can provide a suitable location for entering the real estate profession because it has a steady and diverse housing market with affordable properties in many areas. Success in the real estate industry, however, depends on various factors like market conditions and personal skills. To deal with properties in Ohio, you must first obtain your real estate license.
How do I get my real estate license in Ohio?
To get a real estate license in Ohio, you must be at least 18 years old and have a high school diploma. You’ll then need to complete 120 hours of approved real estate education, apply for your license through the Ohio Department of Commerce’s Real Estate & Professional Licensing division, submit your fingerprints, and pass the state licensing exam.
How much does a real estate license cost in Ohio?
The cost of obtaining a real estate license in Ohio can vary, but you’ll typically need to budget for pre-licensing courses (around $300 to $600), exam fees (about $61), and the license application fee (around $81). Additional costs might include fingerprinting and background check fees ($60 to $80), which can vary.