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How Much Do Real Estate Agents Make in Texas?

How Much Does a Real Estate Agent Make in Texas? 

Real estate, with its tantalizing promise of substantial commissions, has lured many to explore it as a career path.

As with many professions, the allure often begins with the question: “How much can I make?”

For those considering real estate in Texas, the state’s vast size, diverse population, and booming housing market make it a unique playing field.

Let’s delve deeper into the earning potential for real estate agents in the Lone Star State.

Factors Influencing Agent Earnings

Before jumping straight into the figures, it’s important to understand that an agent’s income is not fixed. Several factors influence the potential earnings:

Experience

As with most professions, those who’ve been in the field longer tend to earn more. Experience can lead to a larger client base, better knowledge of the local market, and refined negotiation skills.

Location

An agent in upscale neighborhoods of Dallas or Austin may handle fewer but more expensive properties, leading to bigger commissions. In contrast, agents in more rural or economically stagnant areas may handle a larger volume of sales but at lower price points.

Work Hours

Real estate isn’t typically a 9-to-5 job. Agents who work full-time, weekends, and evenings might naturally see a higher income than those who work part-time.

Brokerage Fees

Agents often work under a brokerage and have to share a percentage of their commissions. The terms of this split can significantly affect an agent’s take-home pay.

Economic Climate

Real estate is a cyclical industry, with booms and busts. Market conditions, interest rates, and local economic factors can all influence agent earnings.

The Basics of Agent Compensation

Real estate agents typically work on commission, which means they earn a percentage of the sale price of a property.

This commission is often split between the buyer’s and seller’s agents, and then further split between the agent and their brokerage.

In Texas, the typical commission rate is around 5% to 6% of the sale price, though this can vary.

For simplicity, consider a $300,000 home sale with a 6% commission:

  • Total commission: $18,000
  • Split between buyer’s and seller’s agent: $9,000 each
  • If an agent has a 70-30 split with their brokerage, they’d take home $6,300 from that transaction.

Average Earnings in Texas


Pursuing a career in real estate has the potential for significant financial rewards. Data from job platform Indeed suggests that real estate professionals in Texas can earn upwards of $100,000 annually.

However, such figures aren’t uniform and can vary based on several influencing elements.

Dive deeper into this article to uncover the intricate factors that can determine an agent’s earnings in the vast landscape of Texas real estate.

Entry-Level Agents

Those in their first year can expect to earn anywhere from $20,000 to $40,000, given that they’re still building their client base and learning the ropes.

Mid-Level Agents

With a few years under their belt, agents can expect their income to rise. Average earnings for this group are in the ballpark of $50,000 to $75,000.

Top Producers

The top 10% of real estate agents in Texas have reported earnings exceeding $100,000, with some even touching the $500,000 mark or higher, especially in hot markets.

Remember, these are averages. Many agents earn below these figures, and many earn above.

Expenses to Consider

Being a real estate agent isn’t just about raking in commissions. There are expenses to consider:

  1. Licensing and Education: Before one can practice, they need to pass the state’s licensing exam, which requires prior coursework. There are associated costs with these, and agents must also pay for continuing education.
  2. Marketing: Whether it’s staging homes, running ads, or hosting open houses, marketing costs can add up.
  3. MLS Fees: To access the Multiple Listing Service (MLS) databases, agents need to pay periodic fees.
  4. Transportation: Driving clients to property viewings, especially in a state as vast as Texas, means substantial fuel and maintenance costs.
  5. Other Overheads: This can include office space (if not provided by the brokerage), professional attire, and insurance.

The Path Forward

If you’re considering a career in Texas real estate, it’s essential to have realistic expectations. While the potential for a high income is certainly there, it requires dedication, hard work, continuous learning, and strategic networking.

For those who are persistent, the Texan real estate landscape offers a wealth of opportunities.

With urban hubs like Houston, Austin, Dallas, and San Antonio seeing continuous growth and development, and with many out-of-state Americans finding Texas an appealing relocation spot, the housing market is poised to remain vibrant for years to come.

In conclusion, while the question of earnings is pivotal, a career in real estate should also be about passion, people, and finding the right property for every client.

With the right mix of dedication and skill, Texas can indeed be a lucrative playground for aspiring real estate agents.