By Mike Bodeen · 5 May 2026
Jonathan and I are periodically queried by someone considering a real estate career and whether or not it’s a good idea? This is often asked by someone who has retired from a previous career outside of real estate and looking for something to fill their time.
We will never tell someone not to go into real estate, but when we express the “facts on the ground” usually that makes up their minds that maybe becoming an Uber driver might be a better gig for them.
For all agents, commission sales are like a roller coaster (see chart below). Note on the chart the years 2008-2012. Today’s low sales look hefty compared to then.
First, it’s important to know the difference between a real estate agent and a Realtor. A Realtor is a real estate agent, but not every real estate agent is a Realtor. Realtor’s are members of the National Association of Realtors (NAR), which has about 1.5 million members nationwide. As Realtors, Jonathan and I are bound by a strict Code of Ethics which adds a moral code to our conduct and a means by which differences can be worked out with other agents and the public. Non-Realtor agents do not have this same accountability.
“So, the average Realtor in America is a 49-year-old woman who works for a large real estate company in California, earning a gross income of $55,000.”
There are approximately 2 Million licensed real estate agents in the country. Last year there were 4 million home sales – very low. 1.55 million are “Realtors.” Almost one-half million are not. Why are they not? One reason is that they may not want the scrutiny of an association looking into their business. Some don’t like paying dues – about a grand per year. Most remain licensed so they can do a deal here or there to fund a vacation.
So who is a typical Realtor?:
60% of Realtors are women
The average age of a Realtor is 49 years old
Average annual number of sales per real estate agent (nationally) is: 2
The median income for agents is $50,000 to $60,000
Experienced Agents (16+ years) earn about $78,000 annually
Top Agents make over $119,000 per year
So, the average Realtor in America is a 49-year-old woman who works for a large real estate company in California earning a gross income of $55,000.
Net or gross? Some folks may criticize the big fat paycheck an agent may get, like 2.5% to 3% of the sales price. But in reality how much of that actually goes into the pocket of the agent? You may be surprised to know.
After the agent’s company takes their cut – up to 40% of the full commission plus other miscellaneous fees such as Error and Omissions insurance. As a self-employed person, most agents are responsible for all their own expenses, including auto, licensing, marketing (signage; advertising) and a real big one few think about when they go into the industry, is full self-employment tax. No employer shares that with us. Agents shoulder all 15.3%. Plus, there’s no 401k retirement plan, no health benefits, etc, no paid vacations, etc.
When it’s all said and done, half of an agent’s gross paycheck can go toward expenses.
That is why the stark reality in our industry is that in 2021, for example, the new agent fall-out rate was 53% and in 2022, 49%.
Next week, we’re going to look at the amount of hours a successful agent puts into their career, plus the joys and pitfalls of living on the commission edge.