Judging by what you see on social media, you would think that Realtors are just rolling in dough. With the endless photos and videos of swanky cocktail parties, fancy import cars, expensive watches and glittering jewelry, how could you not?
The numbers tell a different story.
Real estate can be a lucrative profession, with the potential to earn significant income for those who succeed in it. However, despite the allure of high earnings, the reality is that the average Realtor's income is surprisingly low.
On a national level, according to the National Association of Realtors (NAR), the median gross income of a Realtor was $54,330 in 2021. Salary.com states that the average Realtor income in the United States is $44,813 as of January 26, 2023.
I pulled sales information from our MLS system, albeit not 100% accurate, for the last 12 months from Realtors and Realtor teams that are associated with Brokers in Sarasota and Manatee counties. My sample size was large, with 8,675 members, which is mostly just Realtors, but it does include a small number of managers, administration staff, Brokers and similar positions that generally sell no property. The statistics for the last 12 months show:
Average gross income - $74,070
Median gross income - $21,258
Average number of transactions - 5
% of agents who sold 5 or fewer properties - 72%
% of agents who sold 4 or fewer properties - 68%
% of agents who sold 3 or fewer properties - 62%
% of agents who sold 2 or fewer properties - 55%
% of agents who sold 1 or fewer properties - 46%
% of agents who sold 0 properties - 35%
It is important to remember that the above numbers are gross income. Typical expenses include broker split, Realtor association fees, marketing, transportation, insurance etc.
As you can see, the average Realtor will not be rolling around in a Rolls Royce based on a gross income of $74,070.