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How Much Do Real Estate Agents Make in Ohio?

 

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If you are an Ohioan considering entering the real estate industry, you may wonder, “How much do real estate agents make in Ohio?” We’ll tell you what to expect, including the average real estate commission in Ohio for 10 of the largest markets.

 

The Average Salary for a Real Estate Agent in Ohio

According to data collected by Colibri Real Estate, the average salary for a real estate agent in Ohio is $77,205. This is 37% higher than the average salary of workers in the Buckeye State. While we use the word “salary,” it’s important that you understand that most real estate agents work solely on commission. The commission is based on a percentage of the property’s sale price.

This commission system has been in place in the U.S. since the 1950s and, despite recent headlines, continues to be the way real estate agents in Ohio and the rest of the country are paid. For those of you getting started on the Ohio real estate pre-licensing process, you must also understand that you’ll share a percentage of your commission with your brokerage company.

Now that you understand the average salary for a real estate agent in Ohio – and how you will get paid –
let’s discuss the average commission rate we see in the Ohio real estate industry.

Average Real Estate Commission in Ohio

The average real estate commission rate in Ohio is 5.81%, according to a survey conducted by FastExpert. (For comparison purposes, the national average real estate commission rate is 5.57%.)

According to Zillow, the average home value in Ohio is currently $213,149. This means that real estate professionals may earn $12,384 for services related to the average real estate transaction.

$213,149 x 5.57% = $12,384

If you are contemplating becoming a real estate agent, it’s worth noting that experts have predicted that Cincinnati, Columbus, Cleveland, and Toledo will have hot housing markets in 2024. This means the average property’s price will increase this year – and so will the real estate agent’s commissions!

Who pays the real estate commission in Ohio?

The seller typically pays the real estate commission in Ohio. Typically, the real estate agents’ fees are deducted from the proceeds the seller makes when the transaction is finalized at closing

How is the commission divided between agents?

As a seller’s agent, you will sign a contract with your client that says you will provide services for a specific commission percentage. The seller’s agent then typically sets the buyer’s agent’s commission

Once the transaction is complete, the seller’s agent pays the buyer’s agent. Then, both agents give their brokerages a share of the money.

Here’s an example of how a 5.81% commission may be divided in Ohio.

How Commissions May Be Divided in Ohio – Based on 5.81% Commission

Average value of a home in Ohio$213,149
Total commission paid to real estate professionals$12,384
Seller’s agent commission (based on a 50/50 split)$3,096
Seller’s agent’s brokerage commission$3,096
Buyer’s agent commission (based on a 50/50 split)$3,096
Buyer’s agent’s brokerage commission$3,096

These numbers give you some understanding of how much income you may expect to make working as a real estate agent in Ohio.

Average Ohio Real Estate Commission Rate by Market

Below is the average home value in Ohio’s ten most populated cities. Based on a 5.81% commission rate, here’s how much real estate professionals may earn by selling an average property.

Average Real Estate Commission for 10 Ohio Cities
City Average Home Value 5.81% Real Estate Commission
Columbus, OH $232,847 $13,528
Cleveland, OH $97,348 $5,656
Cincinnati, OH $225,274 $13,088
Toledo, OH $111,302 $6,467
Akron, OH $119,643 $6,951
Dayton, OH $135,815 $7,891
Parma, OH $178,667 $10,381
Canton, OH $149,414 $8,681
Lorain, OH $123,148 $7,155
Hamilton, OH $260,353 $15,127

Source for Average Home Value: Zillow. January 2024

Again, this commission is typically split four ways – among the buyer’s and seller’s agents and
brokerages.

Average Ohio Real Estate Commission for Commercial Properties

When you become a real estate agent, you may focus on a niche, such as commercial real estate.
Commercial real estate commissions vary. You might see the same 6% commission rate that you typically find in the residential real estate world. However, some commercial commissions are graduated (5% up to $1M, 4% of $1M-$5M, for example). Finally, some Ohio commercial real estate agents agree to work on a project for a flat fee.

If you focus on Ohio commercial real estate, take as many continuing education courses and specialized training as possible to serve this industry segment better.

Income potential is one reason people become a real estate agent in Ohio. Ohio real estate agents also enjoy a flexible schedule and the satisfaction of helping families find their forever homes. When you’re ready to start your Ohio real estate pre-licensing courses, turn to Hondros College.

Hondros College (by Colibri Real Estate) is a leading real estate school in Ohio. Hondros College offers in-person, livestream, and take-at-your-own-pace online classes. You can also depend on Hondros College for exam prep and continuing education courses.

Learn more about the Ohio real estate pre-licensing process. Then, when you are ready, enroll in the
120-hour pre-licensing course for Ohio.Sources:

  1. Matarazzo, Steph. “Average Real Estate Agent Commissions by State (2023 Survey).” FastExpert. October 26, 2022. https://www.fastexpert.com/blog/real-estate-agent-commissions-by-state/.
  2. “Ohio Home Prices & Home Values.” January 22, 2024. Zillow. Ohio Home Prices & Home Values | Zillow
  3. Weiker, Jim. “Three Ohio Cities Among Nation’s ‘Hottest’ Real-Estate Markets for 2024.” The Columbus Dispatch, January 5, 2024. https://www.dispatch.com/story/business/real-estate/2024/01/05/ohio-home-shoppers-to-find-no-relief-in-2024-according-to-forecasts/72118589007/.

 

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