The 2025 Average Real Estate Agent Salary in Every State

Real estate is more than just transactions — it’s about relationships, expertise, and strategy. Income potential in this industry can vary widely, but understanding the factors that influence earnings and adopting smart strategies can help you thrive.

Average real estate agent salaries state by state

Our comprehensive research pulls from the following sources: VanEd, Talent.com, The Perry Real Estate College, Colibri, The Close, The CE Shop, FastExpert, Agent Advice, Zippia, Glassdoor, Indeed, and ZipRecruiter. Our custom summary reports that the average annual salary of real estate broker-owners in the United States is $82,220.

The highest-paying states for real estate agents

The top five states with the highest real estate agent salaries are New York, Nebraska, Washington, Connecticut, and the top average, Vermont. But remember, though these states offer the highest average pay for real estate agents, they may require more investment on your part. For instance, while New York offers high earnings, it also has one of the highest costs of living in the country.

If you’re considering a move to one of these states, start by talking to brokers in your target area to make informed decisions. Also, be aware of different licensing requirements across states.

The lowest-paying states for real estate agents

These states include Mississippi, Florida, Wyoming, Kentucky, and Montana. Some of these states have relatively low housing prices, which directly impact the commission-based income of real estate agents. In the case of Florida, there are more agents per capita, increasing competition and pushing down commission rates.

What influences an average real estate agent salary?

The beauty of real estate? Your income isn’t capped. Commissions drive your earnings, but several factors can make a big difference in how much you take home:

• Market conditions: When the market’s hot, so is your take-home pay. Booming property values and increased activity mean higher commissions. During slower times, focus on building relationships and uncovering opportunities others might overlook.
• Location and property values: Agents in high-value areas like California or New York often see bigger commissions, while those in smaller markets may focus on higher transaction volumes or niche expertise.
• Specialization: Working with luxury homes, commercial properties, or specific niches allows you to position yourself as an expert, often commanding higher fees for your specialized knowledge.
• Brokerage affiliation: Commission splits vary widely, both between and within companies. Starting agents may pay a higher percentage to their brokerage, but experienced professionals can negotiate better terms or transition to independent models to keep more of their earnings.

How commissions contribute to the average real estate agent salary

Here’s a quick example:

• You close a $500,000 sale with a 6% commission, which equals $30,000.
• If it’s being split in the traditional way*, half of that will go to the buyer’s agent, netting you $15,000.
• Assuming you’re an 80/20 split with your brokerage, your take-home pay will be $12,000.

*Note that the NAR Settlement of 2024 ended traditional cooperative compensation and the industry has shifted, particularly for buyer’s agents. To learn more, check out our Presence Panel discussion about the industry changes and how to adapt.

Buyer’s agent comp strategies

Get three buy-side compensation structures that will appeal to clients while protecting your paycheck. We also include templates with sample language you can use to amend your current buyer’s agreement.

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Strategies to increase the average real estate agent salary

To boost your earnings, keep these strategies top of mind:

• Focus on high-value markets: Because commissions are usually a percentage of the sales price, higher-priced properties tend to pay more. If your area lacks these, consider specializing to attract clients willing to pay higher percentages for your expertise.
• Build a strong network: Referrals and repeat clients are invaluable. Strengthen relationships with industry pros and prioritize top-notch client experiences.
• Leverage technology: Tools like customer relationship management (CRM) systems, AI-driven platforms, and marketing software help you work smarter and focus on closing more deals.
• Expand your income streams: Supplement commissions with services like property management, consulting, or investing in real estate yourself.
• Negotiate your commission split: This is essential to maximizing your earnings as a real estate agent. A favorable split allows you to keep more of what you earn, rewarding your expertise and effort while giving you the flexibility to reinvest in growing your business.

Education and expertise are key to long-term success

Real estate doesn’t require a degree, but success starts with proper licensing and grows through ongoing education. Beyond state-required courses, certifications like luxury home sales or commercial property specialization can set you apart and allow you to tap into lucrative markets.

Consider getting your real estate broker’s license. The requirements vary depending on your state, but it’s a logical next step for someone looking to increase their earnings. As a broker, you can keep a larger share of your commissions, eliminate splits with a supervising brokerage, and even earn additional income by managing other agents. Beyond the financial perks, having the authority to oversee deals and run your own business positions you as a leader in your market — opening the door to more high-value opportunities and long-term profitability.

Real estate agents and Luxury Presence

Success in real estate is a mix of skill, opportunity, and the drive to grow. By understanding the factors that shape the average real estate agent salary and taking steps to enhance your career, you can unlock your full earning potential. At Luxury Presence, we’re here to help with tools, strategies, and support to take you to the next level. If you’re ready for your business to thrive, we’d love to talk.

Luxury Presence can elevate your marketing strategy

Learn how we can help take your real estate business to the next level. Schedule a time to speak with one of our branding experts today.

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