When exploring a new career as a real estate agent (called a “broker” in Washington), it’s practical to wonder how much you can expect to make as a beginner in the industry. “What is the average starting salary for real estate agents?” Well, the answer to that question is somewhat complicated.
Real estate stands out as a unique industry when it comes to income, as agents typically earn solely through negotiable commissions. Many people are drawn to real estate by the prospect of unlimited earning potential, particularly if they’ve worked hard in previous roles without seeing proportional financial rewards. However, determining the average entry-level salary for real estate agents can be challenging. To provide some clarity, let’s examine income statistics for new real estate agents in Washington and explore what you could potentially earn.
Key Takeaways
- Key factors affecting real estate income include location, experience, niche specialization (e.g., luxury or investment properties), brokerage commission structures, and market conditions.
- Washington’s housing market is strong, with a median sale price of $589,272 and homes moving quickly (median of 22 days to pending). The market offers diverse opportunities for both buyers and sellers.
- To maximize first-year earnings, focus on networking, hosting open houses, managing time effectively, building partnerships, setting clear goals, and delivering exceptional customer service.
Overall Expectations for Real Estate Starting Salaries
Starting salaries in real estate can vary widely depending on several factors, including whether you work full time or part time, your location, your niche (residential, commercial, luxury, etc.), the brokerage or company you join, and your specific role. (Not everyone in real estate works as a commissioned salesperson.)
To be honest, your income is also heavily influenced by your focus, drive to achieve goals, and willingness to put in long hours—particularly in the early stages of your career.
Average Starting Salaries for Real Estate Agents in Washington and Nationwide
The average salary for real estate agents in Washington is $97,169, according to ZipRecruiter (December 2024), while the U.S. average is $85,793.
Factors Influencing Entry-Level Real Estate Agent Salary
Several factors determine how much you can make as a real estate broker, including your location, experience, commission structure, and market conditions.
1. Location
The commission earned by a real estate broker in Washington is typically based on a percentage of the property’s sale price, so it makes sense that salespeople working in the Seattle or Bellevue area make more per transaction than those working in areas with a lower cost of living.
Take a look at the average value of homes in these cities. According to FastExpert, real estate professionals in Washington typically earn 5.67% of each sale, divided between the seller’s agent, buyer’s agent, and their brokerages.
How much do real estate agents make per sale in Washington?
| City | Average Value of Homes | 5.67% Commission |
| Seattle, WA | $850,864 | $48,244 |
| Spokane, WA | $381,614 | $21,638 |
| Tacoma, WA | $478,906 | $27,154 |
| Vancouver, WA | $498,915 | $28,288 |
| Bellevue, WA | $1,446,915 | $82,040 |
| Kent, WA | $635,572 | $36,037 |
| Everett, WA | $644,072 | $36,519 |
| Spokane Valley, WA | $398,890 | $22,617 |
| Renton, WA | $740,416 | $41,982 |
| Yakima, WA | $344,266 | $19,520 |
Of course, location isn’t the only factor determining a first-year agent’s income. You can do well, regardless of location, if you focus on a lucrative niche – or sell a lot of properties.
2. Experience and expertise
The income report reveals that experienced real estate agents typically report higher earnings than those just starting out. This is expected, as seasoned agents usually have a more extensive network and established client base, making it easier to secure leads.
Additionally, agents specializing in luxury and investment properties often earn more than those working in other niches.
3. Brokerage and commission structures
Another factor that plays a role in how much you’ll make the first year as a real estate broker is the agreement you sign with your brokerage. Beginning real estate brokers often work under less favorable terms than experienced brokers. This means that you may have to give a larger share of your commission to your brokerage when starting out in return for the training, resources, and support they provide.
4. Market conditions
Market conditions are a significant factor in determining the earnings of an entry-level real estate agent. Variables like interest rates, housing inventory, global events, and home prices can all influence your income.
As with any industry, real estate experiences its ups and downs. However, waiting for perfect conditions to get your real estate license isn’t the best strategy. By building a strong brand and solid connections now, you’ll be well-positioned to succeed when the market in your area picks up.
The state of Washington’s housing market is strong. The market remains active and well-supplied. Property values are holding steady, with a median sale price of $589,272, up 3.5% YoY (as of December 2024). Homes are also moving quickly, with a median of just 22 days to pending, reflecting the market’s fast pace. While 29.6% of sales are over the list price (indicative of competitive bidding), 44.7% are under the list price, suggesting buyers still have room to negotiate in some instances. This mix reflects a market with diverse opportunities.
Strategies for Maximizing Earning Potential Your First Year
Earning a healthy income in real estate often takes time. For this reason, some individuals choose to keep their day jobs and work part-time in real estate.
To help you hit the ground running, here are actionable strategies to maximize your earnings in your first year as a real estate broker.
1. Tell all your connections about your new career.
Inform your family, friends, and acquaintances about your new real estate career. Leverage social media and attend networking events to broaden your audience and position yourself as your community’s go-to expert for real estate inquiries.
2. Volunteer to work open houses.
Offer to host open houses for other agents in your brokerage. These events are excellent opportunities to connect with prospective buyers and sellers while growing your network. Even if a property isn’t a perfect fit for a buyer, you can collect their contact information and assure them you’ll follow up when a suitable listing becomes available.
3. Develop strong time management skills.
Structure your daily schedule to balance lead generation, client meetings, and marketing activities. Prioritize tasks directly contributing to income generation, such as following up with leads.
4. Build partnerships.
Build partnerships with mortgage brokers, contractors, home stagers, and other professionals in related industries. These collaborations can generate referrals and open doors to new business opportunities. Attend industry events to connect with influential real estate professionals in your area.
5. Set goals and track progress.
Set clear, achievable goals for transactions, income, and lead generation. During slower periods, focus on activities like cold-calling or distributing door-hanger tags so as not to be frustrated that you aren’t meeting your income goals. Continuously track your progress and refine your strategies to stay on course.
6. Deliver exceptional customer service.
Prioritize building trust and fostering long-term relationships with your clients. Word-of-mouth referrals from satisfied customers can significantly boost your business. Deliver exceptional customer service to ensure your clients enthusiastically recommend you to their friends and family.
7. Take advantage of training and education.
Participate in training sessions, webinars, and workshops your brokerage or local real estate associations offer. Stay updated on market trends and regulations to provide valuable insights to clients. Rockwell Institute can help you stay on top of what’s happening in the Washington real estate industry and increase your entry-level real estate agent salary. We offer real estate license courses, continuing ed, and certifications such as Accredited Buyer Representative.
