How Much Do Real Estate Agents Make in Texas? Factors and Tips

Real estate is a lucrative and rewarding career for many people.

But how much do real estate agents make in Texas, and what factors affect their income?

Real Estate Agent
Real Estate Agent |Majority

In this article, we will explore the average salary of a real estate agent in Texas, as well as the main factors that influence their earnings.

Average Salary of a Real Estate Agent in Texas

According to Indeed, the average salary of a real estate agent in Texas is $84,952 per year as of September 2023¹. This is 11% below the national average of $95,627 per year.

However, this figure can vary significantly depending on several factors, such as experience, location, market conditions, and certifications.

According to Glassdoor, the estimated total pay for a real estate agent in Texas is $184,823 per year as of September 2023.

This includes a base salary of $119,645 per year and an additional pay of $65,177 per year.

The additional pay could include cash bonus, commission, tips, and profit sharing.

However, this figure is based on the median of the pay ranges from their proprietary model and may not reflect the actual income of individual agents.

Factors that Influence Real Estate Agent Income in Texas

Independent Real Estate agent
Independent Real Estate agent | MYHOUSE

There are many factors that can affect how much a real estate agent makes in Texas. Some of the most important ones are:

Experience

Experience plays a critical role in a real estate agent’s income.

Those just starting out in the industry may earn around $25,000 per year.

As agents gain experience and establish their reputation, however, their income can increase significantly.

Agents with more than five years of experience can earn $70,000 or more annually.

Number of Transactions

Real estate agents usually earn a commission — a percentage of a property’s total sale price.

The more transactions an agent closes, the higher their income.

The standard commission rate in Texas is typically around 6% of the property’s sale price — split between the buyer’s and seller’s agents.

For example, if an agent sells a house priced at $300,000, they would receive $9,000 from the transaction after splitting the commission with the other agent.

However, they would also have to pay a share of this commission to their broker, which could range from 30% to 50%⁵.

Geographical Area

Property prices and the volume of transactions can differ significantly from one region to another.

Agents working in urban areas with generally higher property prices, such as Houston or Dallas, can earn more than those operating in rural areas.

According to Indeed, the highest paying cities for real estate agents in Texas are Haslet ($101,388 per year), McKinney ($100,726 per year), Dallas ($98,456 per year), Tyler ($97,927 per year), and Austin ($94,498 per year).

Market Conditions

The current state of the real estate market also affects an agent’s earnings.

Robust markets offer more opportunities to sell properties, leading to increased income.

According to recent figures from the U.S. Census Bureau, Texas cities are growing faster than cities in all other states.

This indicates that now is a good time to enter the real estate market and get your Texas real estate license.

Certifications

Certifications and designations that make you more recognizable in your niche (e.g., an Accredited Buyer’s Representative, a Seller Representative Specialist, or a Certified Residential Specialist) can improve your earnings.

These credentials show that you have specialized knowledge and skills that can benefit your clients and set you apart from other agents.

Conclusion

Real estate is a dynamic and competitive career that can offer high rewards for those who work hard and smart.

The average salary of a real estate agent in Texas is $84,952 per year as of September 2023, but this can vary depending on several factors such as experience, location, market conditions, and certifications.

If you are interested in becoming a real estate agent in Texas, you will need to complete 180 hours of pre-licensing education and pass the state exam.

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