Average Real Estate Agent Income in California 

What is the average
real estate agent
salary in California? 

Considering California’s median home value is in the $600,000–$700,000 range, California real estate agents have great opportunities to earn money. 

Even if you don’t have clients from upper-tier markets, the sheer volume of active buyers and sellers in California produces a huge need for real estate agents with expertise across price points and niches. 

The average salary of a real estate agent in California varies depending on experience, location, and level of success. According to ZipRecruiter, the median annual wage for real estate agents in California is around $85,000. However, California real estate agents can earn significantly more, even as a part-time real estate agent. In competitive markets like Los Angeles or San Francisco, they have a very realistic chance of making a six-figure income. 

Some factors that affect the average real estate income for first-year real estate agents in California are: 

• Your first-year marketing budget
• Your broker’s reputation in your chosen market 
• Your commission split with your broker 
• Whether or not you have a mentor 
• Whether you’re part-time or full-time 
• Your contacts and your networking skills 
• Which city you work in 
• And your understanding of your local market and/or niche 

How much commission does a realtor make in California?

Real estate agents in California typically earn commissions based on the sale of properties. Although it can vary, the commission rate is generally around 5–6% of the final sale price. So, if a home sells for $800,000—slightly under the median house price in California—the commission for the sale could be between $40,000 and $48,000 in commission.

However, one agent doesn’t keep all of that. Since this commission is split between the buyer’s agent, the seller’s agent, and the respective brokerages, the actual amount earned by each agent is less than half of the overall commission rate.

Once accounting for these splits, the final take-home is more like 2–2.5% of the sale price for the buyer’s agent and the seller’s agent. Going back to the $800,000 sale example, the expected income would be around $16,000 to $20,000.

While the commission rate contributes to your salary, arguably the most important factor is which California city you’ve chosen to work in. The average single-family home in Los Angeles is around $650,000, whereas Oxnard’s median home value is around $330,000. In short, it could take twice as many sales in Oxnard to match the salary you could earn in Los Angeles.

Do California real estate agents get paid hourly? 

Most real estate agents in California do not receive an hourly wage or salary. Their income is solely through commissions on the sales of properties, as explained above.  

While this means that a California real estate salary is not guaranteed or wholly predictable, it does mean that agents have a unique incentive to work hard and close deals, meaning that you can have greater control over your financial situation. 

A recent survey found that real estate agents who work more hours earn more money—especially real estate agents who work between 40–60 hours. So, you have some control over your financial picture. Even better, the survey found that the highest earners were also the happiest agents, not just because of the income but because of the satisfaction of seeing hard work pay off. 

What are the highest paying real estate jobs in California?

Some of the highest paying real estate jobs in California include real estate brokers, real estate developers, and property managers. Real estate brokers have an additional level of licensing which requires a minimum of two years of full-time real estate sales experience. With this higher licensing, added responsibilities, and often team management, brokers usually earn higher salaries than agents.  

Real estate developers also have the potential to earn significant incomes by managing and investing in real estate projects. Property managers who oversee rental properties can also earn competitive salaries in California. 

How much do part-time real estate agents make in California? 

Real estate can also be a part-time gig. Obviously, this means a lower potential income from real estate, but this can be a great way to supplement other income or have a flexible job while you focus on other projects, like pursuing education or turning to a new career.  

Of course, the benefits are that part-time work allows one to experience a real estate career without immediately abandoning other sources of income. Starting out part-time may even make it easier to find out which niches and markets you prefer before committing to a career switch. 

While a part-time agent probably won’t earn as much as a full-time agent, you can still make good money through commissions—and you can do it in a way that fits your schedule. To maximize your earnings, you may want to focus on specific niche markets—such as luxury real estate, a particular neighborhood that you know well, or a certain population or demographic. 

How much is a real estate broker’s salary in California?

Usually, a real estate broker earns more than a sales agent. However, just like a sales agent, their income depends primarily on sales commissions, meaning that it can be just as variable and uncertain as an agent’s income. 

That said, the median income is over $100,000, making it a very appealing option for experienced agents who are looking to level up their career. 

However, before you pursue this option, consider the additional responsibilities and education required to become a broker. You’ll need at least two years of sales experience, complete eight required college-level courses, and pass the written exam. After that, you can apply to the California Department of Real Estate to receive a license. 

How much does a real estate broker earn vs. a real estate agent in California?

Real estate brokers typically earn higher salaries than real estate agents in California. While agents earn commissions on property sales, brokers may also earn income from fees charged to agents within their brokerage—though brokers also have additional responsibilities, such as usually overseeing a team of agents and other managerial duties.  

Brokers also have opportunities to increase their income by managing multiple real estate transactions and expanding their business. On the whole, this gives brokers the potential to earn significantly higher incomes than agents. 

The salary of a real estate broker in California can vary based on factors such as experience, location, and the size of the brokerage. However, successful brokers who run their own firms or oversee a team of agents can earn significantly more. In competitive markets like Los Angeles or San Francisco, top-performing brokers can make six-figure incomes or higher.