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It's a very common question for consumers, students and for real estate industry members: How much do real estate agents really make?

I know a lot of new agents didn't have a clue when they started and some still have a belief that they can make well over $100,000 per year working less than 40 hours per week.

The answer to this question can vary wildly depending on where you're working and how many hours a week.
 
A recent infographic by one of the larger MLS data republishers, Point-2, explains some of the variables that agents, sellers, buyers and someone interested in getting into the business may find useful.

Take a look at this information in this video:
 

 

Source: Used under standard YouTube license terms.

The survey and the video talk about American numbers. As always, real estate is very local. In Canada, surveys have indicated that the average agent makes less than $40,000 per year. This is a gross income amount. Since real estate agents are independent contractors they have expenses to pay out of this: Overhead - licence fees, board membership fees, brokerage desk fees, assistants or contractors; Insurance; Advertising - Internet & websites, print media, postage, signage, MLS listing fees, photography; Automobile; Technology - computers, cellphones, software; and, Continuing education.

Then, like everyone else: income taxes!

Using local MLS data, it also validates the number for recent years. The local average gross commission income calculates to be about $35,000 (assuming they charge a "market normal" commission fee) – and that's before their business expenses.

Based on these numbers you can be sure they're working less than 40 hours per week, but as far as making over $100,000 per year? Not likely, but a few individuals will earn that.

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