Key takeaways
- NAR’s 2026 Member Profile puts median gross income for REALTORS® with two years or less experience at about $8,000 for 2025, versus $59,200 for all members.
- The typical new agent closed a median of 2 transaction sides; the typical member closed 9.
- First-year costs — licensing, dues, MLS, marketing and a car — can run $2,000–$5,000 a month before the first commission, according to agents interviewed by Inman.
- Referral clients and a savings cushion help new agents reach the income levels of experienced peers.
Most new real estate agents earn very little in their first two years: NAR’s 2026 Member Profile reports a median gross income of about $8,000 for REALTORS® with two years or less experience. That number rises sharply with experience, and the agents who get there usually have a cash cushion and a steady source of clients. Here is what the data shows and how to improve your odds.
How much do new real estate agents make?
| Group (NAR 2026 Member Profile, 2025 data) | Median gross income | Median transaction sides |
|---|---|---|
| 2 years or less experience | ~$8,000 | 2 |
| All REALTORS® | $59,200 | 9 |
| 16+ years experience | $88,500 | — |
These are medians, so half of agents earned more and half less. Many new agents also work part time while they build their business.
How commission turns into take-home pay
A commission is split several ways before it reaches you. On a $400,000 sale with a 2.5% buyer-side commission:
- Gross side commission: $400,000 × 2.5% = $10,000
- Brokerage split (example 70/30): you keep $7,000
- If it was a referral at 25%: $10,000 × 25% = $2,500 goes to the referring broker first, then your split applies to the remaining $7,500 → $5,250
- Then self-employment tax, income tax and business expenses
Splits, caps and fees vary widely by brokerage. Learn more in real estate referral fees explained.
What new agents spend
NAR reports median business expenses of $9,530 for members in 2025, with vehicle costs the largest category. New agents also pay for licensing courses, exams, association and MLS dues, E&O insurance, signs and marketing. Agents interviewed by Inman in 2026 estimated $2,000–$5,000 a month in costs before a first closing, and six to nine months to that first deal.
Why so many new agents struggle
The main reason is not skill — it is pipeline. New agents have no past clients, so the median agent with two years or less experience got 0% of business from repeat clients or past-client referrals in NAR’s data. Relitix figures cited by Inman show about 49% of agents whose first closing was in 2022 had no closings in 2023.
How to earn more in your first year
1. Build a six-month cash cushion
Agents who last usually had savings, a second income or a partner’s support while they built a pipeline.
2. Get clients you don’t have to find yourself
A real estate referral network sends ready buyers and sellers and charges only when a deal closes. See real estate referrals for new agents.
3. Join a team or find a mentor
21% of REALTORS® work on a team, per NAR. Teams and mentors share leads and help you avoid costly first-deal mistakes.
4. Work a consistent lead system
Pick two or three sources and work them daily. Our list of lead sources for new agents compares the options.
5. Track every lead in a CRM
Most deals come from follow-up, not first contact. A simple CRM for new agents keeps you consistent.
6. Set aside money for taxes
As an independent contractor (86% of REALTORS® are, per NAR), you pay your own taxes. Many agents set aside 20–30% of each check; ask a tax professional what is right for you.
If you are weighing a part-time or referral-only path, see how a real estate referral agent works and what referral agent income looks like in practice.
PropReferrals
Shorten the road to your first commission
PropReferrals connects new agents with verified buyer and seller referrals in the areas they serve.
Frequently asked questions
How much do new real estate agents make in their first year?
NAR’s 2026 Member Profile reports a median gross income of about $8,000 in 2025 for REALTORS® with two years or less experience.
How long does it take a new agent to make money?
Many new agents take six to nine months to close a first deal, and commissions are paid at closing.
How many deals does a new agent close?
The median for agents with two years or less experience was 2 transaction sides in 2025, per NAR.
Can referrals help new agents earn more?
Yes. Referral clients are ready to act and cost nothing until closing, which helps new agents close deals sooner.
Sources: NAR 2026 Member Profile (2025 data); Inman, “New agents say how they’re surviving” (May 2026); REALTOR® Magazine, “How to get more referrals from agents.” General information only, not legal, tax or financial advice.
How much do new real estate agents make: key takeaways
How much do new real estate agents make in their first year? It depends on lead sources, local prices and how quickly you follow up. For official wage data, see the US Bureau of Labor Statistics outlook for real estate agents.