Considering that there are only on average 5,000 closed deals in a year, that means the average agent closes zero deals! In fact, it is a widely quoted statistic that 90% of the deals in NYC are closed by the top 10% of real estate agents.
Assuming an average 6% commission rate and an average sale price of $2 million, that would mean the average yearly income of a top real estate agent in NYC is $108,000.
This of course may sound low for New York City, especially considering all of the high flying luxury brokers you see on TV. However, keep in mind that even among the top 10% of agents in NYC, there is extremely lop-sided income inequality between the highest producers and the rest.
Of the $540,000,000 in commissions earned by the top 10% of agents in NYC per our calculations and assumptions previously stated, the lion’s share will go to the top producing agents and teams in NYC. These will be well known luxury brokers and brokers who star in reality TV shows and the like. To their credit, these agents have really leveraged old and new media to make themselves mini-celebrities. No doubt, this has helped their business massively in a way that was never seen before.