Real estate is a booming industry in New York City, but what can you expect to earn as a real estate agent in the Big Apple? For those looking to join the real estate industry, knowing how the New York real estate industry works is important. If you are considering becoming a real estate agent in New York City, you may wonder what the average New York real estate agent salary is.
In this blog, we will explore the salaries of real estate agents in NYC and provide helpful insights into the earning potential in the city.
According to data from Glassdoor, the average base salary for a real estate agent in New York City is around US$72,383 per year. However, this can vary widely depending on experience, education, and the brokerage firm you work for. Top-performing agents can earn six-figure salaries, while those just starting may earn closer to $30,000 per year.
While base salary is important, most real estate agents earn most of their income through commission-based compensation. According to data from the National Association of Realtors, the median gross income for real estate agents in the US will be $42,813 in 2023. However, in New York City, this figure is likely higher due to the city’s high cost of living and competitive real estate market.
Real estate agents in New York City typically earn a commission on the sale or rental of a property, which is a percentage of the total sale price or rental value. According to data from StreetEasy, the typical commission for a real estate agent in NYC is between 5% and 6% of the sale price for a residential property and 15% of the annual rent for a rental property.
To help you gain a better understanding of the average New York real estate agent's salary, we have addressed some of the most commonly asked questions.
When a real estate agent earns a commission, it’s usually split between the agent and their brokerage firm. The split can vary widely depending on the brokerage and the agent’s experience and performance. Some brokerages may offer a 50/50 split, while others may offer a 70/30 or even an 80/20 split in favor of the agent.
Sometimes, the commission may also be split between the buyer’s and seller’s agents. The buyer’s agent typically receives a portion of the commission if they help a client purchase a property. In contrast, the seller’s agent receives the remaining portion for their role in selling the property. The split can also vary depending on the brokerage and the specific transaction.
In addition to the split between the agent and the brokerage, there may also be a split between the salesperson and the broker. In New York City, real estate agents must work under a licensed broker, and the broker may take a percentage of the agent’s commission as their share of the transaction.
While the average real estate agent salary in New York City may vary depending on various factors, it’s clear that top-performing agents can earn a comfortable six-figure income. However, it’s important to consider the competitive nature of the real estate market in NYC, as well as the costs associated with living and working in the city. By understanding the average salaries, commission structures, and tax implications for real estate agents in NYC, aspiring agents can make informed decisions about their career paths and financial goals.
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