Yes, you can live off being a realtor, but it depends on several factors like location, experience, effort, and market conditions. Here’s a detailed breakdown:
1. Income Variability
Realtors typically earn commissions rather than a fixed salary. The standard is around 5–6% of the home’s sale price, split between the buyer’s and seller’s agents.
Example: On a $300,000 home with a 6% commission:
- Total commission: $18,000
- Split 50/50 between buyer’s and seller’s agents: $9,000 each
- Then your brokerage may take 20–50%: You might keep $4,500–$7,200 per sale.
So income is highly variable depending on how many homes you sell.
2. Expenses
Being a realtor isn’t just commissions. You also pay for:
- Licensing and renewals
- Marketing and advertising (signs, listings, social media, website)
- MLS fees and association dues
- Transportation
- Insurance and office costs
These can easily total $5,000–$15,000 per year depending on your market.
3. Location Matters
- Big cities or high-end markets = higher commissions, more competition.
- Smaller towns = fewer sales, lower commissions, but sometimes easier to build a client base.
4. Experience & Networking
- New agents may struggle for the first 1–2 years unless they have leads or a strong network.
- Experienced agents with a strong client base can make six figures.
5. Full-Time vs Part-Time
- Many agents start part-time while building a client base.
- You can live off real estate full-time if you sell enough properties consistently, but it takes planning, marketing, and persistence.
✅ Bottom Line: Yes, it’s possible to live off being a realtor, but you need to be realistic. Your income will fluctuate, and success requires consistent effort, networking, and smart marketing.
Many agents make a comfortable living, but few become wealthy unless they target high-end properties or multiple streams of real estate income.
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Let’s break it down with a realistic earnings table for a realtor, assuming a 6% commission split 50/50 with the other agent, and then your brokerage takes 30%.
| Home Price | Commission (6%) | Your Share (50%) | After Brokerage (70% kept) | Sales per Year | Annual Income |
|---|---|---|---|---|---|
| $200,000 | $12,000 | $6,000 | $4,200 | 10 | $42,000 |
| $200,000 | $12,000 | $6,000 | $4,200 | 20 | $84,000 |
| $300,000 | $18,000 | $9,000 | $6,300 | 10 | $63,000 |
| $300,000 | $18,000 | $9,000 | $6,300 | 20 | $126,000 |
| $500,000 | $30,000 | $15,000 | $10,500 | 10 | $105,000 |
| $500,000 | $30,000 | $15,000 | $10,500 | 20 | $210,000 |
Notes:
- Brokerage split can vary from 20–50%, so your take-home could be higher or lower.
- Expenses like marketing, MLS fees, and licensing (roughly $5k–$15k/year) are not included.
- More sales = higher income, but more work and time.
- Luxury homes = higher commissions per sale, fewer sales needed for the same income.