The answer is not much. The average real estate agent’s annual income is pretty low. However, you have to take into account the large number of part-time real estate agents who have their license but have another job or source of income. In fact, according to the NAR Member Profile Report, more than half of all Realtors have a different primary source of income for their household and it is not real estate. This is why it is important to look at the average income of Realtors who have been licensed for a number of years (which I will).
|Dollar Amount Made Annually||43,500||47,700||45,800||39,200||42,500||39,800||41,800||49,700||43,330||54,300|
Realtors Average Income Licensed More than 16 Years
These numbers are certainly better, but still are not that impressive for having more than sixteen years experience in an industry.
|Income with 16+ Years Experience||73,400||78,850||78,850||71,000||86,500||75,000||85,000|
Why is Realtor Income So Low?
There are a few primary reasons. First of all, there are simply too many real estate agent, we are at a historic high. Second, sales commissions are dropping from 6% to closer to 4%. Third, the top 25% of the industry make 75% of the sales. This is a tough job to do part-time, and we have too many part-time agents.
Realtor income is especially low the first few years a real estate agent is licensed.
Boston Real Estate and the Bottom Line
The above data is the national average, downtown Boston real estate agents make significantly more than the national average as a whole.