Yes, you can live off being a realtor, but it really depends on a few key factors: location, market conditions, your skills, and how you manage your business. Let me break it down:
- Income Varies a Lot – Realtors usually earn through commissions, typically a percentage (like 2–3%) of the home’s sale price. So, selling a $500k house might get you $10k–$15k—but that’s split with your brokerage, and then you pay taxes and business expenses.
- High Potential, High Variability – Some realtors make $100k+ a year, others struggle to hit $30k. Your income can fluctuate a lot month-to-month depending on sales.
- Costs Are Real – Marketing, licensing, MLS fees, office fees, transportation, and continuing education all eat into your earnings.
- Skill & Effort Matter – Networking, marketing, client management, and negotiation skills can make a huge difference. Top producers often work long hours, especially in the beginning, to build a client base.
- Location Is Everything – Markets with higher home prices or lots of activity make it easier to earn a living. In slower or cheaper markets, it may be harder to earn enough to live comfortably.
✅ Bottom line: You can live off being a realtor, but it usually requires grit, smart marketing, persistence, and time to build a steady stream of clients. Many new realtors supplement income at first until they build momentum.
Let’s break it down step by step so you can see what it really takes. I’ll use some realistic assumptions:
Assumptions:
- Average home price: $400,000 (adjust based on your market).
- Commission rate: 3% per sale (typical in the U.S.).
- Split with brokerage: 50% (this varies; some brokerages take less).
- Taxes and expenses: roughly 30% of gross income (marketing, gas, licensing, etc.).
Step 1: Commission per home
- 3% of $400,000 = $12,000 total commission.
- Split with brokerage 50% → $6,000.
- After expenses/taxes (30%) → $6,000 × 0.7 = $4,200 net per sale.
Step 2: How many sales for different incomes
| Target Income | Net per Sale | Homes Needed per Year |
|---|---|---|
| $50,000 | $4,200 | ~12 |
| $100,000 | $4,200 | ~24 |
| $150,000 | $4,200 | ~36 |
| $200,000 | $4,200 | ~48 |
So, if you want to make $100k a year, you’d need to close about 2 houses per month at $400k each (with the assumptions above).
Step 3: Notes & Variations
- If homes are higher priced ($600k–$800k), you need fewer sales.
- If your brokerage takes less than 50%, or you’re a top negotiator, your net per sale goes up.
- In cheaper markets ($200k homes), you’d need twice as many sales to hit the same income.
- This doesn’t include “off months,” so having a buffer is important.
💡 Reality Check:
Many new realtors struggle their first year or two to even hit 10 sales, but once you build a network and repeat clients/referrals, hitting 24–36 sales per year becomes realistic. Top agents often make $200k–$500k annually, but it’s rare at first without hustle.