Real Estate Agents and Brokers

Compensation in the real estate field is based largely upon commission. Agents usually split commissions with the brokers who employ them, in return for providing the office space, advertising support, sales supervision, and the use of the broker's good name. When two or more agents are involved in a transaction (for example, one agent listing the property for sale and another selling it), the commission is usually divided between the two on the basis of an established formula. Agents can earn more if they both list and sell the property.

According to the U.S. Department of Labor, median annual earnings of salaried real estate agents, including commission, were $48,930 in May 2019. Salaries ranged from less than $24,930 to more than $111,800. Median annual earnings of salaried real estate brokers, including commission, were $59,720 in May 2019, with salaries ranging from less than $23,600 to $178,720 or higher.

Agents and brokers may supplement their incomes by appraising property, placing mortgages with private lenders, or selling insurance. Since earnings are irregular and economic conditions unpredictable, agents and brokers should maintain sufficient cash reserves for slack periods.

Real estate agents and brokers who work for a company usually receive benefits such as vacation days, sick leave, health and life insurance, and a savings and pension program. Those who are self-employed must provide their own benefits.