How Much Does a Real Estate Agent Actually Make?

Two men look at a laptop in a high rise condo — Unsplash

Soaring house prices in recent years and the onslaught of high-roller realtor shows (we see you, Selling Sunset) have left many of us wondering about real estate agents’ salaries. After all, a five per cent commission on a million-dollar home is an impressive $50,000. If a realtor helps clients buy and sell just two homes at that price a year, that’s an easy $100,000 salary, right?

Well, not exactly. As it turns out, it’s a lot more complicated than that. For one, there are various fees, expenses, overhead, and training to consider. It’s also a super competitive market. The Canadian Real Estate Association (CREA) reveals it has more than 160,000 real estate brokers, agents, and salespeople working through 65 real estate boards and associations across Canada.

With that competition, many agents have lowered their fees, while struggling purchasers have turned to alternative house-buying methods, including emerging DIY websites and apps. As a result, realtors across the country have been affected. These days, they may not make as much as we think.

If you’ve ever wondered how much real estate agents make, we’ve got the full breakdown below.

Couple looking at houses with an agent — Getty Images

How Much Do Real Estate Agents Make in Canada?

According to the government of Canada’s Job Bank, realtor salaries varied wildly in 2023. On the low end, a realtor made $30,847. The average salary was $58,400. And those who had the best year pulled in $178,000. This is all before taxes.

The Job Bank also estimates that realtors usually work more than 40 hours per week, which is above the national average of 35.8 hours per week. In other words? Realtors work pretty long hours and not always for a lot of money.

In Which Provinces Do Realtors Make the Most Money?

Due to limited data, the Job Bank cannot determine the median wages for realtors in Nunavut and the Northwest Territories. It’s also unable to share information on low and high annual wages in the Yukon or Prince Edward Island, although it revealed the median annual wage in the Yukon was $168,000 (the highest overall) but only $33,185 in PEI (the lowest overall).

Elsewhere, Manitoba realtors had the highest median salary of $68,000, while Ontario realtors were second with a median salary of $62,400. Saskatchewan was the third-highest province for working realtors, with a median salary of $60,400.

British Columbia realtors earned an average of $58,400, Quebec realtors earned $57,200, and Newfoundland and Labrador realtors earned an average of $56,000. Rounding out the Canadian provinces were Nova Scotia ($51,600), New Brunswick ($50,000), and Alberta ($46,400).

For sale signs and sold signs on lawns in Canada — Getty Images

Where Do the Richest Realtors Live?

Where do the richest realtors live? Ontario. Although Ontario realtors didn’t have the highest median wages, they had the highest top salary of all the provinces, at $206,000. New Brunswick had the lowest high, at $115,000.

Conversely, Saskatchewan realtors had the lowest bottom-end salaries, at $31,691, and British Columbia had the highest low, at $36,971.

How Much Commission Do Realtors Actually Keep?

Canada has no mandatory commission, which can complicate setting a standard rate. In Ontario, for example, the old standard was that sellers would pay five per cent—2.5 per cent to the selling agent and 2.5 per cent to the buyer’s agent. In B.C. and Alberta, realtors charge seven per cent on the first $100,000 and three per cent on anything over that.

Because housing prices have increased so much in recent years, consumers no longer feel that the five per cent “standard” is fair. In response, some realtors negotiate lower fees, and some homeowners try to sell their homes independently. That can be risky, however, if you aren’t aware of all the rules and regulations that come with selling your property.

Further complicating things is a recent change in the US. The National Association of Realtors settled a $418 million (US) lawsuit that will eventually lower the standard six per cent commission American realtors charge. Some in Canada are hoping a similar change could happen here.

How Much Does a Real Estate Agent in Canada Actually Make After Fees and Taxes?

Understanding where a realtor’s commission actually goes is another piece of the puzzle. In addition to annual taxes, realtors in Canada pay for a slew of other things, such as marketing, brokerage fees, licenses, travel, education and training costs, CREA fees, local real estate board fees, insurance premiums, and all of their own home business expenses.

Due to market saturation, many realtors only make one or two sales annually. Only the top 10 per cent of agents make more than 10 sales per year, reports WOWA. The financial encyclopedia also reports that 51.3 per cent of agents make zero to one sales per year. That can make real estate a tough industry, particularly for new agents entering the market.

What Are the Benefits of Using a Realtor?

Although it’s possible to find, buy, or even sell a home without a realtor, real estate agents offer many benefits. Good realtors do all the leg work to meet legalities, which is particularly important if deals fall through or there are unmet terms.

When selling, they research prospective buyers and ensure they qualify for the purchase before proceeding. They also tap into their various markets to help advertise the property. When purchasing, they may have access to properties for sale before the public has access, giving you an advantage.

Good realtors are also skilled in writing and reading contracts. They will have your back during negotiations and tend to have an array of contacts, like mortgage brokers, inspectors, lawyers, and other specialists, to help you through your sale or purchase. They also familiarize themselves with a market and know the city council’s plans for the area’s future, so you can be aware of things like a new development or the elimination of greenspace that sellers may not otherwise disclose.