How Much Do New Real Estate Agents Make in Minnesota?

by | Nov 23, 2025 | Starting a Real Estate Career

As a new real estate agent in Minnesota, you might wonder what your earnings could look like. On average, first-year agents make around $84,026 annually, but your income can vary widely based on numerous factors. Market conditions, geographic location, and your brokerage affiliation all play a key role in determining your salary. Curious about how these elements impact your potential earnings and which cities offer the best opportunities? Let’s explore further.

Average Salary for First-Year Real Estate Agents

Although many factors influence earnings, the average salary for first-year real estate agents in Minnesota stands at approximately $84,026 per year or $40.40 per hour. This figure reflects the potential for considerable income, primarily driven by real estate commissions. However, entry-level expectations can vary markedly, with many agents earning between $20,000 and $50,000 annually, depending on their efforts and local market conditions. In metropolitan areas like Minneapolis, earnings can soar to $100,000 due to higher demand. Support from brokerages and ongoing training also play important roles in shaping early income levels, as agents navigate their first year and build their networks. Ultimately, the variability in earnings underscores the significance of personal initiative and market trends, as seniority plays a critical role in determining salary potential.

Salary Ranges and Percentiles

In Minnesota, new real estate agents experience a diverse range of salaries, typically falling between $48,822 and $103,739 annually. Salary comparisons reveal that the majority earn between $45,956 and $73,059, with the 25th percentile at $77,900 and the 75th at $122,400. At the lower end, the 10th percentile earns $17.50/hr, while top earners in the 90th percentile can make up to $67.21/hr. This wide salary spectrum largely stems from the commission structures prevalent in the industry, where top performers can greatly exceed median earnings. Additionally, successful agents often leverage partnerships to increase their earning potential and spread risks. Despite these opportunities, Minnesota ranks low nationally for real estate salaries, indicating a challenging earning environment for new agents compared to other states. Furthermore, salary variation exists based on location and market demand, which further influences potential earnings for new agents.

Factors Influencing Salaries

Several key factors shape the salaries of new real estate agents in Minnesota, each influencing potential earnings in distinct ways.

Market conditions play a significant role; active markets and rising property values lead to more sales opportunities and higher commissions. In fact, the average annual salary for real estate broker-owners in the U.S. is $82,220, highlighting the potential earnings for agents in a thriving market. Additionally, understanding market trends can enhance an agent’s credibility and inform client decisions, ultimately contributing to increased sales.

Your brokerage affiliation affects your commission structures, often presenting less favorable splits for newcomers, and additional fees can cut into your earnings.

Experience and full-time commitment are important; agents dedicating more hours typically close more deals.

Geographic factors also matter, as agents in urban areas enjoy higher earning potential compared to those in rural markets.

Finally, honing your marketing and networking skills will enhance your visibility and lead generation, ultimately impacting your income.

Top Earning Cities in Minnesota

When considering top earning cities for real estate agents in Minnesota, Edina and Blaine stand out with impressive average salaries of $132,048 per year. Edina’s advantages include its status as a key suburban hub in the Twin Cities metro area, offering a diverse housing market that attracts affluent buyers. This consistent demand drives robust earning potential for agents. Additionally, the supply fluctuations in the market can further influence pricing and demand, benefiting agents in their negotiations. Meanwhile, Blaine’s growth is evident through its rapid expansion and increasing housing demand, fueled by strong new construction activity. Agents in Blaine benefit from an evolving market that enhances their income opportunities. Average annual salary for broker-owners in the U.S. is $80,507 in both cities provides competitive compensation, making them prime locations for real estate professionals seeking profitable careers in Minnesota.

Minnesota’s real estate job market is relatively steady but competitive, with around 2,480 licensed agents working primarily in financial activities. While job openings can be limited at times, opportunities do arise in growing metro areas where housing demand continues to rise.

Shifts in work habits—especially the increase in remote work—are influencing how and where people buy homes. These changes are creating new possibilities for agents who can adapt to digital tools and remote client engagement.

Although Minnesota may not rank among the top states for agent income, the market offers stability and the potential for strong commission-based earnings—especially for agents who actively build their networks and stay informed on local trends.

Frequently Asked Questions

What Qualifications Are Needed to Become a Real Estate Agent in Minnesota?

To become a real estate agent in Minnesota, you’ll need 90 hours of approved education, pass the state licensing exam, submit an application with a background check, and affiliate with a licensed broker for activation.

How Do Commissions Work for First-Year Real Estate Agents?

Commissions for first-year agents typically involve negotiating commission structures, often resulting in lower earnings due to fewer closed deals. Your first-year earnings will depend on transactions, brokerage splits, and market conditions affecting commission rates.

Are There Additional Costs New Agents Should Anticipate?

Yes, you should anticipate marketing expenses for branding and lead generation, plus ongoing training costs for professional development. These can significantly impact your budget, so plan accordingly to guarantee a successful start in real estate.

What Resources Can Help New Agents Succeed in Minnesota?

To succeed in Minnesota, tap into networking opportunities and mentorship programs. Leverage local REALTOR® associations and brokerages for training, resources, and guidance, ensuring you build strong connections and gain valuable insights from experienced professionals.

How Long Does It Typically Take to Get Licensed in Minnesota?

It typically takes you 3–6 weeks to complete the licensing process, including pre-licensing education. After that, you’ll need to prepare for the exam, which can be scheduled immediately upon finishing your coursework.

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