The real estate profession can be financially and personally rewarding, especially in a thriving market like Orlando. For prospective agents, understanding potential earnings is crucial to making informed career decisions. How much do real estate agents make in Orlando, Florida? Keep reading to learn about average salaries, factors influencing earnings, and how commission structures shape an agent’s income.
Key Takeaways
- Orlando offers a dynamic and growing housing market driven by population growth, strong tourism, and new construction. The city is ranked fourth nationwide for new homes built per 100,000 residents, making it a lucrative location for real estate agents.
- Orlando real estate agents earn competitive incomes, with the average salary for experienced Florida agents making $95,053 based on data collected from Indeed. Factors such as market conditions, experience, and commission splits with brokerages significantly influence earnings.
- Agents are typically paid at closing, earning a commission that ranges from 5-6% of the property sale price, split between the buyer’s and seller’s agents. For example, a $380,000 home sale could yield $11,400 per agent before brokerage splits.
- An agent’s income depends on experience, market trends, work ethic, and niche specialization. Seasonal fluctuations in sales and savvy real estate investments can further influence income, offering additional opportunities to grow wealth.
Overview of the Orlando Real Estate Market
Orlando’s real estate market is dynamic, driven by a strong economy, tourism, a robust inventory, and population growth. With diverse property types ranging from vacation homes to urban condos, agents in Orlando operate in a competitive but financially rewarding environment.
The Orlando real estate market has seen significant growth in recent years, particularly in terms of median home prices and available housing inventory. According to Zillow, the median home price reached $379,154 as of December 2024. Moreover, the city’s housing inventory has consistently expanded, partly fueled by an uptick in new construction. In fact, Orlando is the fourth-ranked city nationwide for new homes built per 100,000 residents.
While the state of the local housing market is a key consideration of how much money you can make as a real estate agent, other factors play a significant role.
Importance of Understanding Earnings for Prospective Agents
Understanding potential earnings is critical for anyone considering a career switch. However, there’s added consideration if you want to become a real estate agent, as real estate is often a commission-based profession. Most real estate agents work solely on commission based on the property’s sale price.
How much do you get paid as a real estate agent in Orlando? Your income can vary significantly based on market conditions, real estate niche, individual effort, and experience.
Average Salary of Real Estate Agents in Orlando
Finding reliable data that says how much real estate agents make in a particular metro area is difficult. Additionally, many real estate agents work part-time in the field while working another job, which can throw off already widely varying salary data.
Statistics on average earnings
As with most professions, income potential in real estate tends to increase with experience. According to ZipRecruiter, first-year real estate agents in Florida earn a median income of $64,112. In contrast, data from Indeed shows that agents with over 10 years of experience report earning an average of $95,053.
Comparing a Florida real estate agent’s salary to the national average
The average salary of a real estate agent in the U.S. is $85,793, according to ZipRecruiter. Florida agents typically make more, perhaps due to the state’s vibrant housing market.
How Do You Get Paid as a Real Estate Agent?
Real estate agents are typically paid at the closing of a real estate transaction. This is when all final paperwork is signed and funds are distributed.
Commission agreement
The commission percentage (usually 5-6% of the sale price) is determined when the seller signs a listing agreement with their agent. This agreement outlines the agent’s role in marketing and selling the property. Similarly, buyers may sign a buyer’s representation agreement with their agent, specifying how the agent will be compensated.
Commission split
The total commission is divided between the seller’s agent (listing agent) and the buyer’s agent, typically in equal parts unless otherwise negotiated. For instance, a 6% commission on a $300,000 home would be split into $9,000 for each agent’s brokerage.
Sometimes, the buyer may pay their agent representative directly, depending on what was outlined in their agreement.
Brokerage split
As mentioned, each agent’s earnings are further split with their brokerage based on their agreement. This percentage can vary widely depending on the agent’s experience and the terms of their brokerage contract. New agents might have a 50/50 split, while experienced agents often retain a higher percentage, such as 70/30 or 90/10.
Funds disbursed at closing
The escrow company or attorney managing the transaction at closing handles the funds.
- The agreed-upon commission is typically deducted from the seller’s proceeds.
- Payment is sent to the brokerages involved in the transaction.
- Typically, each brokerage distributes the agent’s portion based on their split agreement.
Example of Agent Earnings
Let’s break down an example:
Sale Price: $300,000
Total Commission: 6% ($18,000)
Listing Agent’s Share: $9,000
Buyer’s Agent’s Share: $9,000
After a 30% brokerage split, each agent keeps $6,300.
Agents only get paid if the deal successfully closes, making their income directly tied to their performance. This commission-based structure incentivizes agents to work hard to close deals while providing excellent service to their clients.
In summary, while the process may seem complex, it ensures that agents are fairly compensated for their efforts in navigating a transaction from start to finish. The rewards can be significant for those willing to put in the work.
Factors Influencing a Real Estate Agent’s Salary
Here are some of the most common factors that impact how much real estate agents earn in Orlando and the rest of the country.
- Experience: Seasoned agents typically have established networks and greater market knowledge, leading to higher earnings. However, it’s worth noting that those starting out as an agent in Orlando still make a great living in Florida.
- Market conditions: A hot real estate market can increase the number of transactions and overall income potential. According to Zillow, Orlando has an optimistic one-year market forecast. Get your license quickly to take advantage of this growth.
- Commission splits with brokers: Agents share their earnings with their brokerages in exchange for the brokers overseeing their transactions and providing training, technology, and other support. Split percentages can range from 50/50 for new agents to 70/30 or higher for experienced agents negotiating favorable terms.
- Work ethic: In a commission-driven field, an agent’s effort and ability to generate leads significantly influence earnings.
Of course, several other factors affect how much you can earn in the real estate industry, including your area of specialization (luxury properties, condos, etc.), your targeted neighborhood, and how many hours you can put into your business.
Seasonal fluctuations in sales
Orlando’s real estate market experiences seasonal shifts, with spring and summer typically seeing higher transaction volumes. These fluctuations impact agents’ monthly income, requiring financial planning to navigate slower months.
Earning money through your own real estate investments
One often-overlooked benefit of being a real estate agent is that you’ll have access to inside information should a good investment opportunity come your way. Your net worth may increase with savvy real estate investments.
Typical Commission Rates in Orlando
As previously mentioned, real estate agents in Orlando primarily earn through commission—typically a percentage of the property’s sale price. This structure incentivizes agents to close deals and maximize sales volume.
How much does a real estate agent make per sale? In Orlando, commission rates generally range from 5% to 6% of the sale price, split between the buyer’s and seller’s agents. For example, on a $380,000 home sale, the total commission might be $22,800, with each agent earning approximately $11,400 before splits with their brokerage.
Income is an important factor when choosing a profession, but it’s not the only thing to consider. Before enrolling in real estate pre-licensing coursework for Florida, learn what it’s like being an agent to learn if the field is right for you.
Thanks to Orlando’s thriving housing market, real estate agents enjoy competitive earning potential. With the right approach, dedication, and understanding of the market, real estate can be a lucrative and fulfilling profession.