Current Michigan Real Estate Income, Sales, and Trends

Becoming a real estate salesperson, which is the same professional definition as being a real estate agent, has been statistically proven to be a recession-proof vocation.¹ Additionally, the state is statistically projected to need a dramatic increase in homes and rental units within the decade.

The northwestern region of the state will need an increase in the manufacturing of over 31,000 homes and rental units by 2027.²

The typical price range of a new home in the state hovered around $284,000 in 2023.³ Meanwhile, the national average cost of a new home in the country was over $503,000 in September 2023.⁴

While real estate agents do not draw a salary, they do draw a commission based on sales that can range anywhere between 5 percent to 6 percent.⁵ However, it must be noted that such commission percentages are split between the buyer and seller real estate agents.

Still, depending on your discipline in building a client network, researching the local real estate market, and continually understanding the local buyer’s market you can typically make anywhere between $47,300 to $94,700 on real estate commissions.⁶ You can also typically make up to $189,000 annually as a real estate agent depending on your work ethic.

How Much Do Real Estate Agents Typically Bring in Michigan?

If you’re wondering how much do real estate agents make, it tends to be a lot based on your skills, certifications, and depth of experience.

As previously mentioned, the national salary average for a real estate agent ranges between $47,300 to $94,700.⁶ Remember that the term “salary” is used loosely here since real estate agents do not get a salary and leverage their pay based on 3 percent to 6 percent commissions based on the value of each property they sell.

In the state of Michigan, the typical real estate agent can make anywhere between $42,500 to $85,100 as a standard base salary based on the potential number of successful commissions.⁷ If you have more than a decade’s worth of experience as a real estate agent then you might be able to earn an annual commission ranging anywhere between $100,000 to $170,000.

However, keep in mind that these estimates are just estimates. The amount of money that you could potentially make as a real estate agent will be determined by your work ethic, the viability of your professional network, and your discipline to continually stay apprised of updates in the local real estate market.

Real Estate License Reinstatement and Mutual State Licensing Agreements in Michigan

If you are wondering what do you need to become a real estate agent in good standing again if you allow your license to lapse, then you need to reinstate your license again through a process called re-licensure.

You can apply for real estate re-licensure via the state’s MiPLUS online application system. The processing cost for a real estate re-licensure application is $108.

If your prior real estate license has expired for less than 36 months then you must satisfy up to six hours of continuing education coursework regarding real estate laws to fully satisfy the requisites of the application.

If your prior real estate license has been expired for more than 36 months must do one of three things:

• Complete a 40-hour real estate pre-licensure course
• Satisfy six hours of real estate continuing education coursework
• Pass the PSI exam

Additionally, the state does not offer reciprocity in real estate transactions for non-Michigan residents who wish to practice within the state. Such residents must fill out a real estate license and consent to the service of process application at MiPLUS.

If you want to know how to transfer a real estate license to another state, then you can transfer your license via the MiPLUS online application site. However, you still have to undergo the full application, 40-hour coursework, and exam process to do so.

So, if you are wondering “Why do I need a real estate agent license?” the answer is that every state requires real estate agents to be licensed.

To apply for a real estate application in the state all you need is to be 18 years old and to take the required 40 hours of pre-licensure coursework.

Is Getting a Real Estate License Worth It?

Determining whether obtaining a real estate license is worthwhile depends on your personal drive, discipline, and aptitude for nurturing and growing business relationships within the state of Michigan, all within the professional standards set by the Michigan Realty Commission.