How Much do Real Estate Agents Make in California | Statistical Guide

How much do real estate agents make in California? If you’re one of the entrepreneurs that ask this question, we’ve written this piece to help. According to the BLS, real estate agents in California earn $73,450 a year. Real estate agents in California make among the highest salaries in the country.

However, to get a large salary, you must work hard. While the average is a tall figure, the income range for California real estate brokers is $24,970 on the low end to $123,700 on the high end.

Agents must invest time, energy, and money to become top earners. Real estate agents will find tremendous success if they create a strong foundation of hard work like any other profession. For real estate agents, the first several years are crucial.

It’s critical to build the foundation in terms of marketing and networking. When first-time agents find their cash flow outpaces their inflow, they may get disheartened, but perseverance will ultimately pay off. As your experience develops, your sales will increase once your first contract gets concluded and you’ve created a strong network.

The thriving realtors have been in the industry for 10-20 years. This is in addition to those who had the opportunity to learn the ropes.

You have a long road to success after you earn your California real estate license. If you work hard, promote yourself, and network well, you may become one of the state’s top earners, bringing in six figures each year.

A real estate job offers an exciting chance to make a good wage while also developing as a well-rounded expert.

What do top Real Estate Agents get paid?

How Much do Real Estate Agents Make in California

Although California’s typical real estate agent earns roughly $75,000, California is a massive state with a diverse real estate market. Real estate agents in Los Angeles and other places make significantly over the average pay due to the high value of multi-million dollar mansions.

Top real estate brokers may earn millions of dollars each year in California. These agents must generate at least $50 million in yearly sales and earn a 2% commission on average. While these figures may seem out of reach, real estate agents in California are more likely to sell multi-million dollar homes than agents in any other state.

Your ability, location, and contacts all play a role in becoming a rock star real estate agent. Agents that work in regions such as Los Angeles and California are more likely to make more sales. As a realtor in California, you may live the life of your dreams.

If you’re curious about how much a realtor in California earns, you’ll be pleased to learn that California is one of the most significant states to practice real estate.

While you might not become a multimillionaire rock star agent, your prospects of making $60,000 or more per year in California are better than in many other states.

How real estate commissions are paid

It’s vital to understand how realtor commissions get paid when calculating how much the typical real estate agent in California earns. The compensation of a real estate agent gets determined by the number of transactions completed each year and the commission paid to the brokerage.

This is on top of the commission share they get from their sponsored broker. Agents new to the industry usually start with a lower commission rate and work their way up as they gain experience.

The commission splits will vary by region and brokerage, including extra expenses. New real estate agents might anticipate lesser commissions; while more experienced agents can expect to earn up to 70% of the profit share. Working as a real estate agent for a few years will allow you to make a higher average salary.

While numerous things impact your profits, you will never have a wage ceiling as a real estate salesperson. Your earning potential is governed by how well you perform, how much time you put in, and how motivated you succeed.

As a California real estate agent, you’ll have the chance to earn a lot of money. While you may have to stick to the basics, perseverance and hard effort will get you far.

How to Invest in California Real Estate

How Much do Real Estate Agents Make in California

Anyone who wants to work in real estate in California must first complete a few essential standards. Applicants must be 18 or older, have evidence of California residence, be free of criminal convictions, and have a good reputation.

If these prerequisites are satisfied, applicants must complete 135 hours of instruction and pass the realtor salesperson test before applying for licensing.

The California Department of Real Estate establishes these standards. You’ll also need to secure a license from the granting authorities if you’re asking how to enter into real estate in California so you can start earning.

California Commission Splits for Agents

It’s also essential to grasp various commission splits when discovering how much California real estate agents take home after each transaction. These are some of them:

The seller’s entire commission payment

This might be anything from 1-6 percent of the sales price in California. The industry typical is 5-6 percent. However, commissions for high-priced homes (i.e., $1 million or more) maybe 4-5 percent.

Before a contract is signed, the seller and agent will bargain regarding the price. The commission distribution between the listing and buyer agents follows next. The commission is usually shared 50/50.

Occasionally, a listing may offer a more significant split to the buyer agent to garner more leads. It’s equally a possibility that the contrary is true. To mitigate the costs of selling the property, the listing agent may take 3.5 percent and provide just 2.5 percent to the buying agent.

Another option is dual agency.

If the listing agent successfully locates a buyer and serves both parties, the commission gets paid in full. The commission distribution between the agent and the broker comes next. After receiving the profits from a sale, the broker will pay the commission to the agent.

The accepted commission rate can vary from one agent to the other. This is valid even within the same niche. Also, new agents may earn a 50/50 share, while experienced agents may receive 70/30 or 80/20 splits.

 Two more circumstances might result in a commission. 

Furthermore, the broker may also provide a commission split on a sliding basis. In this situation, the commission starts off low, approximately 40/50 or 50/50, and gradually improves as you sell more. Extra broker costs may apply to each sale, month, or year.

The tax issue

California is known for its excessive taxes, and when a broker pays an agent half of the fee, they don’t deduct anything. This implies that when an agent receives a commission check, they must deduct taxes.

Real estate agents must pay estimated taxes to the IRS every quarter as independent contractors. Income and identity tax, including Medicare and Social Security taxes, are included in the projected taxes.

See the most recent tax brackets to discover how much you must pay each quarter.

There is also a state income tax in California. This means there are ten different income tax bands, the nation’s most. Sadly, the state is also famous for having the top tax bracket, at 13.3 percent.

However, this only applies to those with a household income of more than $1 million. Agents and brokers in California will pay a fee ranging from 0% to 9.3%. Property investment is a field where your earnings aren’t guaranteed.

Set your ambitions high and you may be one of the country’s highest-paid agents.

Frequently Asked Questions

How much do real estate agents make in California?

According to research, realtors in California usually earn over $73,450 yearly.

Is now a good time to begin a career as a realtor?

Yes. Successful real estate agents often have a strong interest in the house-buying process and customer experience when they locate their ideal property. If you’ve desired to work in real estate, now may be the best time to begin.

Is it possible for new real estate agents to earn money?

Yes. Though rookie real estate agents are more likely to sell fewer homes and earn less money. According to research, many real estate agents make over $45,990 yearly. This is valid, although there are many other extra earnings. 

Is it worthwhile to become a realtor?

Being a realtor is a terrific profession if you like properties and dealing with people, but it’s not necessarily the ideal job that some people anticipate. Real estate sales need more effort than you would think too.


In conclusion, real estate provides an excellent earning potential for many people. And if you need more help here, the above highlight on “how much do real estate agents make in California” will aid you immensely.

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