how much do real estate agents make in California

How Much Do Real Estate Agents Make In California In 2024?

When attending the real estate profession in California, how much does a real estate agent make in Texas is a common question. In this article, we will provide you with information about average salary in this state as well as top 10 highest paying cities.

January 5, 2022

California is a potential market for any individuals who want to commit to their real estate career due to the potential price level and demands of customers. Besides, California is expected to provide real estate agents with a dream level of salary each year as well as a high commission for each successful closing. So how much do real estate agents make in California? Find your answer below right now!

If you are planning to get your license for California real estate exam, you should try some of the California real estate practice exam questions to get familiar with the exam format.

How Much Do Real Estate Agents Make In California?

how much do real estate agents make in California

When inquiring about California real estate agents on how much they make and you’ll listen to a part of distinctive numbers. In case you’re searching for a normal, the Bureau of Labor Measurements (BLS) has calculated it for you. According to their inquiring and social research, in the year 2017, the normal yearly salary level for California real estate agents was about $68,860.

California real estate brokers can earn somewhat more with an annual salary of $80,820, quite higher than what a normal agent can make a year. In case you would like a straightforward calculator, that works out to be roughly $39.72 for a working hour. Usually the proportionate of $1,589/week or $6,884/month. That is the reason why California is becoming within the highest-paid category.

California has become the 6th most noteworthy yearly normal level of salary within the entire U.S. But that’s not the full story you can see. Pay rates range from $24,970 for the bottom 10th percentile up to $123,700 within the best 10th percentile. California’s best makers rank up to 4th within the whole nation – the USA.

Why is the $100,000 too different? The workload you take charge of every day is going to influence the level of salary you can earn. The area can also make a big distinction. Within the Santa Maria-Santa Barbara zone, the normal compensation is up to $82,000/year. Go advance inland to Portsville and the normal is just $43,500/year.

Becoming a real estate in California is very rewarding right? Let’s find out How To Become A Real Estate Agent In California? 

What Factors Affect The Salary Range In Real Estate In California?

How much specialists make depends on the number of exchanges they total, the commission paid to the brokerage, and their part with the supporting real estate broker. It is exceptionally difficult to form cash as a real estate agent. Most first-year real estate agents win exceptionally small, to begin with, primarily because they are battling to memorize everything while they construct a potential client base. Operators who are fair beginning out ordinarily get a low commission part whereas they learn the business (it isn’t abnormal for a first-year real estate agent to form approximately 50% of the commission paid to the real estate broker).

Becoming a real estate agent is often considered running a trade. It takes time and a parcel of exertion to construct a trade. From the start, you have got to work difficult and get out of your comfort zone. Once you construct the business and get clients, the business will come to you and you may not get to put as much exertion into the trade.

Top makers gain much more than the normal ones. Each real estate agent sets its own measures for best makers, but it’s likely to say that a beatmaker would offer at least one real estate a month to qualify. Mega-stars are ones who can make up to $200,000 per year and even more than that. Real estate agent’s compensation is based on numerous factors as follows:

Number of transactions 

Since real estate specialists are by and large paid on a commission basis—in the state of California and elsewhere—the number of exchanges can essentially affect the real estate agent’s anticipated profit each year. In most cases, both real estate buyers, as well as the real estate posting specialists, are each paid a 1% to 5% commission on the whole deal cost of the exchange.

Average market price per year

Diverse markets have diverse normal deal costs. To be more specific, the normal domestic cost in California is about $818,260, concurring with the California Affiliation of Realtors. In contrast to the normal U.S. real estate cost of approximately $298,933. Hence a real estate operator in California can anticipate distant higher remuneration than one in a less costly showcase.

Even inside California, there’s a noteworthy contrast among markets. More costly real estate is found in alluring coastal and metropolitan areas—juxtaposed with more unassuming real estate in rural markets.

Real estate market segment

An agent’s emblem can shift depending on the advertisement section they serve. For illustration, a real estate operator specializing in extravagant properties may anticipate winning more than one specializing in more humble starter homes or condominiums. Moreover, somebody who works with sprawling farms or agrarian properties may gain more commissions than somebody specializing in single-family homes. In expansion, real estate operators with profoundly specialized aptitudes in lawful and money-related things may too make more in comparison to those with essential licensure and normal capabilities.

Extra compensation

In a few cases, agents may get extra emolument based on their work inside the brokerage or in a few other perspectives of the market. To be more specific, real estate specialists who work with large-scale real estate speculators, property administration pros, and vigorous referral systems may gain extra commissions, rewards, or pay rates on the best of their deals commissions.

How Does a Commission Split Work In Real Estate In California?

how much do real estate agents make in California

How much do California real estate agents receive after each successful deal? There are a number of commission parts that you should carefully consider.

The first one to consider is the whole commission paid by the vendor. In California, it ranges anywhere from 1-6% of the cost of the deals. The standard is 5-6%, but for high-priced real estate (for example $1+ million) the commission may be more than that, up to 4-5% per contract. The sum is arranged between the vendor and the listing agent before a contract is completely signed.

Another comes the commission part between the posting and the buyer specialist. Ordinarily, the commission is often 50/50 for both parties. After that, you’ll see a posting that provides the real estate buyer agent a better part in the trust of pulling in more potential leads. The posting specialist may take 3.5% to counterbalance the costs of offering the property and offer a mere 2.5% to the real estate buyer agent.

A dual real estate agency is also another plausibility. In the event that the listing specialist closes up finding the buyer and speaking to both at that point, they get the total commission.

At last, the real estate commission is part between the specialist and the broker. The broker will get the continues from a deal, and at that point pay the specialist their cut. The agreed-upon commission part can contrast from different agent to agent inside the same brokerage. The inexperienced real estate agents may get 50% of the commission whereas real estate agents with many years of experience can get upwards of 80/20, 70/30, or 60/40 depending on the agreement between them and the real estate company.

Remember that there are two other conceivable commission scenarios. You will pay a month-to-month broker expense and keep 100% of the commission. The broker may offer a sliding scale commission part. In this case, the commission begins just around 40/50 or 50/50 depending on the agreement, and gets to be more profitable the more real estate you sell.

How Do Taxes Work With Real Estate In California?

California is famous for having a high level of charges, and the broker isn’t deducting anything when they pay a specialist their share of the commission. This means the real estate agent must subtract charges each time after getting a commission check.

When working independently, real estate agents in California have to pay the IRS evaluated charges by themselves each quarter. The evaluated charges incorporate salary assessment and self-employment assessment, which can include several types of taxes such as Social Security and Medicare. You’ll have to reference the most recent assessment brackets to decide how much ought to be paid each quarter.

California moreover encompasses a state wage tax. California has 10 pay assessment brackets – the foremost within the nation. Shockingly, the state is additionally known for having the most elevated state pay assessment bracket at 13.3%. But that just applies to wages over $1 million. California real estate agents and real estate brokers will pay anyplace between 0-9.3%.

Where Do Realtors Get Paid The Most In California?

We have listed and recognized the top 10 cities where the commonplace salary level for a real estate agent is over the normal in California. Topping the list is Danville, with Richmond and San Francisco near behind in momentum and third. San Francisco builds a competitive edge over California normal by just 15.1%, and Danville advances that drift with another $19,447 (accounts for 23.5%) over the $82,611/year. Imperatively, Danville includes a decently active real estate agent labor market with a couple of companies enlisting for this sort of occupation.

With these top 10 cities paying a higher level of salary for real estate agents than that in California, the openings for financial headway by changing areas as a real estate agent shows up to be exceedingly potential.

At last, another calculation to consider is the normal real estate agent salary in California for these beat 10 cities change exceptionally small at 10% between Danville and Torrance, strengthening the restricted potential for much wage progression. The plausibility of a lower fee of living may be the leading calculation to utilize when considering area and salary level for real estate agent responsibilities.

CitySalary level   
San Francisco$95,068/year$7,922/month$1,828/week$45.71/hour
Santa Clara$93,689/year$7,807/month$1,802/week$45.04/hour
San Leandro$93,522/year$7,794/month$1,799/week$44.96/hour

What Are The Highest-Paying Jobs In California?

We found the top 5 real estate occupation categories that pay more per year than a typical one in California. Top 5 best-paying jobs in California combined: Real Estate Apprentice, Locum Tenens Real Estate Agent, Real Estate Rep, Real Estate Investor, Real Estate Partner.

Imperatively, all of these occupations are paid between $16,275 (accounts for 19.7%) and $75,142 (accounts for 91.0%) more than the normal real estate agent level of salary of $82,611. In the event that you’re qualified, getting contracted for one of these related real estate occupations may assist you to make more cash than that of the normal real estate occupations.

Type of jobSalary level   
Locum Tenens Real Estate Agent$98,886/year$8,241/month$1,902/week$47.54/hour
Real Estate Rep$102,155/year$8,513/month$1,965/week$49.11/hour
Real Estate Investor$109,729/year$9,144/month$2,110/week$52.75/hour
Real Estate Partner$142,593/year$11,883/month$2,742/week$68.55/hour
Real Estate Apprentice$157,754/year$13,146/month$3,034/week$75.84/hour

Will a Part-time Real Estate Agent Salary Be Enough?

Both two occupations realtors and non-member real estate agents can receive the opportunity to charge about 5% to 6% per successful closing. This may change depending on their encounter, their showcase, and whether they’re a buying or posting operator. In spite of the fact that a buyer’s specialist may charge around 5-6% per successful closing, buyer’s real estate agents may offer a commission discount to their clients and conclude with a marginally lesser rate.

The advantages and benefits are that part-time real estate work permits one to involve in a real career without quickly abandoning other sources of salary, and may indeed make it simpler for real estate agents to discover which potential course specialties and markets they lean toward working in before committing a full-time occupation.

Read more>> How Much Is The Average Real Estate Agent Salary?

The more you work, the more you earn

Later research shows that real estate agents over the nation who work more hours win more cash — particularly, real estate agents working between 40 hours to 60 hours in the foremost. Besides, the most noticeable real estate agents are moreover the most joyful real estate agents, likely because real estate can be considered a career where difficult work can specifically pay off.

Part-time income in California can be higher

And once more, a part-time California real estate agent working in several big cities such as San Diego, San Francisco, or Los Angeles can have the chance to earn more than the normal part-time real estate agent working in other parts of the US. In brief, the normal real estate agent’s level of salary in California can shift significantly but is higher than in most states in the US.

How Can a Real Estate Agent Increase Income?

how much do real estate agents make in California

Whether you’re a posting or buyer specialist, there are many ways to extend your winning potential, no matter where you’re working.

Develop your expertise

Increment your ability by winning your broker’s permit or through certifications at the associational real estate level. Numerous of these can give the extra proficient capabilities to serve specialized client needs and more complex exchanges.

Connect with investor

Interface with financial specialists in your range by taking an interest in real estate speculator meetups and organizing occasions. Create a boots-on-the-ground framework for finding pre-market and off-market properties in your zone and make yourself a profitable and reliable source of potential bargains for speculators you accomplice with. Over time, you’ll discover that the higher volume of these transactions and your capacity to induce them completed rapidly will give noteworthy extra recompense.

Develop affiliate services

Create affiliate services such as organizing, property administration, or concierge help. This could make a profitable add-on simply can market both to your possess clients and to colleagues within the zone which doesn’t have these types of affiliate services.


How much real estate agents make in California can depend on numerous factors. However, given California’s huge population and high real estate values ​​in most areas, it can be concluded that this is a place worth looking into as you begin your real estate career.

Let’s get started with our Real Estate Salesperson practice exam free to pass your license exam on your first attempt then obtain your license to stay firm in your career.