How Much Do Real Estate Agents Make an Hour? A Comprehensive Guide

Real estate agents are professionals who help people buy and sell properties.

They earn money by charging a commission, which is a percentage of the sale price of the property.

Real Estate Developer
Real Estate Developer | LENDING TREE

 

READ MORE: How to Become a Real Estate Agent with No Experience? How to Break Into Real Estate Without Any Experience

But how much do real estate agents make an hour?

This is not an easy question to answer, as there are many factors that affect their income, such as:

  1. The number and value of the properties they sell or buy
  2. The commission rate they negotiate with their clients
  3. The expenses they incur, such as marketing, advertising, licensing, and taxes
  4. The hours they work, which can vary depending on the market conditions and client demand

To get a rough idea of how much real estate agents make an hour, we can use some data from various sources.

According to Indeed.com, the average salary for a real estate agent in the United States is $95,509 per year, based on 96.4k salaries reported as of November 27, 2023.

Assuming that they work 40 hours a week and 50 weeks a year, this translates to an hourly wage of $47.75.

However, this is only an average, and the actual income of real estate agents can vary widely depending on their location, experience, skills, and performance.

For example, according to PayScale.com, the median salary for a real estate agent in 2023 is $55,346, with a range from $25,000 to $121,000.

This means that half of the real estate agents earn more than $55,346, and half earn less.

The hourly wage based on the median salary is $27.67.

Moreover, according to Careers.govt.nz³, experienced real estate agents in New Zealand earn an average of $85,000 to $90,000 a year, and successful agents can earn well above this.

This means that the hourly wage for experienced and successful real estate agents in New Zealand can be higher than $42.50.

Additionally, according to VanEd.com, the median salary for a real estate broker in the United States is $59,720, which is over $10,000 more than the median salary for a real estate agent.

A real estate broker is someone who has more education and experience than a real estate agent, and can manage their own business or supervise other agents.

The hourly wage based on the median salary for a real estate broker is $29.86.

As you can see, there is no definitive answer to how much real estate agents make an hour, as it depends on many factors.

However, based on the data we have, we can estimate that the average hourly wage for a real estate agent in the United States is somewhere between $27.67 and $47.75, and it can be higher or lower depending on the individual circumstances.

Real estate agents who want to increase their income can try to sell more properties, negotiate higher commission rates, reduce their expenses, improve their skills, and expand their network.

What are the requirements to become a real estate agent?

The requirements to become a real estate agent vary by state, but they generally include meeting a minimum age and education level, completing a pre-licensing course, passing a state exam, and working under a licensed broker.

Here are some common steps to follow:

1.Research your state’s specific requirements.

You can find them on your state’s real estate regulatory office website, which you can access through the

2.Take a pre-licensing course from an accredited real estate school.

The course will cover topics such as real estate law, ethics, contracts, finance, and marketing.

The cost and duration of the course vary by state, but they typically range from $350 to $500 and from 60 to 180 hours .

3.Pass your state’s real estate license exam.

The exam will test your knowledge of the topics covered in the pre-licensing course.

The exam fee and passing score vary by state, but they typically range from $25 to $75 and from 60% to 75% .

4.Activate your real estate license.

Once you pass the exam, you will need to apply for your license and pay a fee, which vary by state.

You will also need to undergo a background check and fingerprinting, and submit proof of errors and omissions insurance.

5.Consider becoming a Realtor®.

A Realtor® is a real estate agent who is a member of the National Association of Realtors (NAR), the largest trade association in the U.S. To become a Realtor®, you will need to join a local real estate association affiliated with NAR, pay a membership fee, and abide by NAR’s Code of Ethics .

6Join a brokerage.

A brokerage is a company or office where real estate agents work.

You will need to work under a licensed broker, who will supervise your activities and provide you with training, support, and leads.

You will also need to share a portion of your commission with your broker, which can vary from 10% to 50% .

These are the basic steps to become a real estate agent.

However, becoming a successful real estate agent requires more than just getting a license.

You will also need to develop your skills, network, and reputation, and constantly learn and adapt to the changing market conditions and customer needs.

Leave a Comment