21 Insightful Real Estate Agent Statistics 2020

The world of property is a complex one. That’s one of the main reasons why so many buyers, sellers, and investors rely on real estate agents. These professionals help people navigate the complexities of property-oriented transactions, including how to choose a property, how to review contracts, and how to negotiate fair prices.

Real estate agents are renowned for their market knowledge, giving them a critical edge in the buying, selling, and investment landscapes. But there is also a range of interesting facts about these professionals, including some that people may want to consider before choosing an agent for their property-related transactions.

Whether you are an aspiring homeowner, a would-be home seller, a dedicated property investor, or an industry professional, here are 21 intriguing real estate agent statistics you should know.

21 Insightful Real Estate Statistics for 2020

1. The Average Annual Salary for Real Estate Sales Agents is $62k

On average, real estate sales agents bring in $62,060 a year. However, the top 10% of earners rake in at least 80% more than that, coming in above the $111,800 mark.

(Source: Bureau of Labor Statistics)

2. Self-Employed Real Estate Professionals Make the Most

The average income for a self-employed real estate agent came in at $106,280. In comparison, average salaries come in at $82,535 for national franchise agents and $69,933 for independently-owned brokerages.

(Source: Real Estate Express)

3. Real Estate Commissions Usually Come In at 5 to 6%

On average, real estate commissions for a home sale total about 5 to 6% of the sale price. The buyer’s agent may receive 2.5 to 3% of the sale price, and the seller’s agent gets the same amount, depending on exactly what has been negotiated.

If one real estate pro happens to handle both sides of the sale, they get the entire commission to themselves. That approach – called a dual agency – isn’t legal in all states. And, even if it is allowed, many consider it a conflict of interest. But, when it does occur, that agent gets all of the commission.

(Source: Redfin)

4. Brokerage Firms Take Cuts of Up to 1.5%

If the real estate agent works for a brokerage, there’s a decent chance they aren’t keeping all of the commission. The brokerage firm may get 1 to 1.5%, depending on the arrangement.

Usually, this is because, when an agent works for a brokerage, the firm spends money in a way that benefits the agent, such as through advertising. Additionally, the agent may seem more reputable by associating with a well-known company, allowing the firm to essentially charge a premium for that association.

(Source: Redfin)

5. In the United States, There Are More Than 106k Real Estate Brokerage Firms

In the United States alone, you can find 106,548 real estate brokerage firms in operation.

(Source: Census Bureau)

6. There Are About 2 Million Licensed Real Estate Agents

In the United States, there are around 2 million professionals with active real estate licenses. Now, this doesn’t mean that all of them are actively working as agents, just that they are licensed to do so.

(Source: Arello)

7. But Only 1.4 million Are Realtors

While all realtors are real estate professionals, not all real estate pros are realtors. A person can’t call themselves a realtor unless they are a member of the National Association of Realtors, a professional organization that maintains strict operating standards.

Overall, the National Association of Realtors has just over 1.4 million members.

(Source: National Association of Realtors)

8. Female Realtors Outnumber Male Realtors, with 64% Being Women

Overall, 64% of realtors are female. That means only 46% are male.

(Source: National Association of Realtors)

9. The Median Age of Realtors (55 Years Old) Is Older Than the Median Age in the U.S.

The median age of a realtor is 55 years old. However, the median age of an American is just 38.2 years old. That’s a 16.8-year difference.

(Source: National Association of Realtors and Census Bureau)

10. Real Estate Agents Are the Second Biggest Users of Drone Technology

Aerial photography is a boon in the real estate industry, as prospective buyers prefer listings that feature images from above. As a result, real estate came in second on the top five industries using small unmanned aircrafts systems (sUAS), only coming in behind the industrial inspection market.

(Source: Federal Aviation Administration)

11. Using a Real Estate Agent Pays Off

About 7% of home sales were for sale by owner (FSBO) in 2017. The “typical” sale price for a FSBO property came in at $174,900. For an agent-assisted sale, the figure was $215,000.

(Source: Las Vegas Real Estate)

12. Open Houses Are a Go-To Strategy, But Not for What You Think

For real estate professionals, open houses are a popular marketing strategy. Sixty percnt of agents admit to using them.

While you would assume that open houses are part of the home-selling process, they typically aren’t. 54.6% of real estate pros who use them admit they do it to source prospective future clients and enhance their professional brand. 54.7% said they did it to show the client that they’re working on selling the property.

(Source: The Balance)

13. Only 2 to 3% of Homes Sell Due to an Open House

Ultimately, even if a real estate agent markets an open house appropriately, only 2 to 3% of open houses actually result in a sale. Often, this has little to do with the agent’s effort. Instead, it’s that not everyone who attends the event is genuinely looking to buy.

It isn’t uncommon for open houses to mainly be attended by noisy neighbors, home sellers exploring a comp, other real estate agents, or even would-be thieves. The majority of attendees aren’t likely to be qualified buyers as a result.

(Source: Rochester Real Estate Blog)

14. About Three-Quarters of Realtors Use Social Media Professionally

When it comes to social media use, 76% of female realtors and 73% of male realtors use it for professional purposes.

(Source: National Association of Realtors)

15.84% of Sellers Admit Relying on Real Estate Agent Know-How

Overall, sellers count on real estate agents to guide them through the process. In fact, 84% of sellers rely on their guidance and will follow their agent’s recommendations about how to market or sell the property.

(Source: Zillow)

16. Of Agents Who Make More Than $100,000 a Year, 60% Use a CRM

Customer relationship management (CRM) software may allow an agent to reach greater levels of success. Sixty% of real estate pros who earn at least $100,000 a year take use referral and CRM software. Of those who earn less than $35,000, 65% say they don’t use these technologies at work.

(Source: Refermeiq)

17. California Has the Most Realtors

In California, there are more than 193,171 active realtors. Coming in second is Florida, which has 186,055. In third-place is Texas, with 126,216.

(Source: National Association of Realtors)

18. And Vermont Has the Least

On the other end of the spectrum is Vermont, with only 1.686 realtors. There are actually more realtors in Alaska (which has 1,747) and North Dakota (1,999). Even Washington D.C., which isn’t a state but a district, has more, coming in with 2,786.

(Source: National Association of Realtors)

19. Being a Virginia Real Estate Agent Pays the Best

If you want to focus on states with the highest average salaries for real estate agents, then Virginia could be the ideal location. In Virginia, real estate agents earn an average of $122,813 a year. That’s $21,623 more than second-place Ohio, which came in at $101,190, and $28,813 more than third-place Washington, which came in at $94,000.

(Source: Real Estate Express)

20. Urban Real Estate Agents Out-Earn Rural Pros by Over $30k a Year

Working in a major urban area general pays off if you are a real estate agent. Those who focus on urban areas earn an average of $83,227 annually. Agents who work in rural regions only make $52,446 a year on average. Coming in between the two are suburban agents, who earn $71,187 on average annually.

(Source: Real Estate Express)

21. When the Market Crashed in 2008, the Number of Realtors Tumbled by 16.5%

The market crash in 2008 shook the nation. However, the housing market was one of the hardest-hit sectors, causing many real estate agents to rethink their profession.

In total, the number of active realtors tumbled by 16.5% between 2008 and 2012, reaching an annual low of 999,824 before beginning to rise again in 2013.

(Source: National Association of Realtors)

Bottom Line

Ultimately, real estate agents can earn a solid living, and certainly make navigating the idiosyncrasies of the markets easier to manage. However, many don’t earn as much as you’d think. While they can certainly maintain a solid living, a high salary isn’t a guaranteed part of the equation.

Additionally, not all agents are created equal. A person can be a licensed agent but not a realtor, which can differentiate some pros from others.

Ultimately, the world of real estate agents is complex and intriguing. If anything, the statistics above prove that this is the case.