Yes, it’s possible, but it’s not easy. Making $1 million a year as a real estate agent requires high sales volume, luxury properties, or a strong team. Let’s break it down:
1. Commission Basics
- Typical real estate commission: 5–6% of the sale price (split between buyer’s and seller’s agents).
- Example: Selling a $1 million home with a 3% commission = $30,000 for the agent (before brokerage splits and expenses).
2. Volume Needed
- To make $1 million in gross commissions at 3% per sale: 1,000,000÷30,000≈34 homes per year1,000,000 ÷ 30,000 ≈ 34 \text{ homes per year}1,000,000÷30,000≈34 homes per year That’s about 3 homes per month, each worth around $1 million.
- If selling $500k homes at 3% commission ($15,000 per sale), you’d need ≈67 sales per year (~5–6 per month).
3. Luxury Market vs. Volume Market
- Luxury market: Fewer sales, higher price → easier to reach $1M/year if you close $5–10M+ deals monthly.
- Mid-market: More transactions needed → requires massive lead generation, strong marketing, and great networking.
4. Other Factors
- Team support (assistants, buyer agents) can scale your income.
- Referrals and repeat clients help maintain high volume.
- Marketing and personal brand matter—a lot.
Bottom line: Making $1 million is achievable, but it usually takes years of experience, networking, and consistent high-value deals. Most agents earn far less—six figures is more common than seven.
Related
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A Table showing how many homes you’d need to sell to make $1 million a year, based on different home prices and a 3% commission (common for a single agent’s share after splits).
| Home Price | Commission per Sale (3%) | # of Sales to $1M | Sales per Month |
|---|---|---|---|
| $500,000 | $15,000 | 67 | 5–6 |
| $750,000 | $22,500 | 45 | 3–4 |
| $1,000,000 | $30,000 | 34 | ~3 |
| $1,500,000 | $45,000 | 23 | 2 |
| $2,000,000 | $60,000 | 17 | ~1–2 |
| $5,000,000 | $150,000 | 7 | <1 |
Notes:
- These numbers are gross commissions—before taxes, brokerage fees, marketing costs, and other expenses.
- Luxury agents usually sell fewer, higher-priced homes. Mid-market agents need more sales volume.
- Building a team can help you scale without handling all transactions personally.