How to Make $1 Million in Your First Year Selling Real Estate: Location, Location, Location

This is the first article in a comprehensive series dedicated to helping newly licensed real estate agents achieve remarkable success.

Wondering if it’s possible to make $1 million in your first year selling real estate? The answer is yes–it’s not only possible but has been accomplished by ambitious agents who follow a strategic plan. However, success of this magnitude doesn’t happen by chance. It requires focus, dedication, and the right opportunities.

In this initial article, we dive into one of the most crucial factors for building a thriving real estate career: location. We’ll explore the markets and brokerages that provide the best opportunities for high earnings, equipping you with insights to start your journey toward achieving that $1 million milestone.

The truth behind real estate dreams: what it takes to succeed

The dream of a career in real estate often centers around visions of financial freedom–luxurious homes, high-end cars, and a prestigious lifestyle. While this dream is a powerful motivator, the reality of achieving success in the industry requires much more than what is commonly observed on the surface.

Many aspiring agents imagine their path to wealth involves activities like:

• Hosting open houses.
• Placing yard signs.
• Showing properties to prospective buyers.

These visible tasks are only a small fraction of what it takes to thrive. Behind the scenes, successful agents rely on strategic planning, tireless effort, and deep industry knowledge to build profitable careers.

However, the statistics reveal a stark reality. According to the National Association of REALTORS® Member Profile for 2023, real estate salespeople (not brokers) with 2 years of less experience had a median gross income of $8,100–a decrease from $9,600 in 2022. This statistic underscores the stark gap between the dream and the reality of earning big in real estate.

To bridge this gap and achieve extraordinary results, new agents must:

• Develop a data-driven strategy tailored to their market.
• Create a comprehensive business plan.
• Commit to continuous learning and improvement.
  

Understanding the challenges and taking intentional, informed steps can turn your real estate aspirations into a thriving and lucrative career.

Dream big, plan bigger: the blueprint for $1 million success

If you’re serious about making $1 million in gross commissions in your first year, you must understand the numbers. Hitting the milestone means selling approximately $50 million in real estate. This figure assumes market commission norms, though actual rates may vary based on location, brokerage, agreements, and negotiation.

While the goal may seem ambitious, top-performing agents across the country have proven it’s achievable. According to the 2024 Real Trends report, The Thousand, over 320 individual agents in the United States achieved $1 million or more in commissions last year. So, what does it take to join their ranks?

Here are essential strategies for reaching $1 million in your first year as a real estate agent:

• Target High-Value Markets: Focus on areas with premium properties where each transaction can generate substantial commissions. 
• Work Smarter and Harder: Dedicate time to consistent, productive activities, from lead generation to client follow-ups.
• Build a Strong Network: Cultivate relationships with clients, brokers, and referral sources to expand your opportunities.
• Invest in Ongoing Improvement: Continuously enhance your skills–master negotiations, stay updated on market trends, and learn from top-performing agents.

Achieving $1 million in your first year isn’t about luck. It’s about combining bold dreams with a focused, actionable plan. By understanding the numbers and following the strategies of successful agents, you can turn your ambitious goals into reality–and build a career that thrives.

Looking to sharpen your real estate negotiating skills? Download the 17 Essential Tips for Successful Real Estate Negotiating. 

Fast-track your career with our Real Estate Accelerator Course

Success in real estate requires more than a license–it demands actionable skills and strategies. The Real Estate Accelerator Online Video Course and Live Online Coaching program bridge the gap between licensing education and real-world success.

This comprehensive program includes:

• 8 hours of in-depth online training with practical exercises to develop a business plan, set SMART goals, and create a lead generation strategy.
• Weekly live coaching sessions over six months, offering personalized guidance, peer interaction, and expert insights.
• Professional tools and resources, such as CRM software, KnowledgeDNA™ goal tracking, and Kaydoh sales engagement platform access for six months.
• Access to our Real Estate Accelerator Community Forum for networking with peers and coaches, fostering collaboration and growth.
• Fillable PDF worksheets to easily create business, marketing, and income plans that set you up for long-term success.
  

By the end of the course, you’ll walk away with a fully developed marketing plan, a professional Realtor.com profile, and actionable strategies to convert leads into successful transactions. With this training, you’ll not only gain the skills but also the confidence to excel in today’s competitive real estate landscape.

Top states for real estate agents earning big

If you want to achieve $1 million in commissions, location plays a critical role. In 2024, the majority of agents selling between $75 million to over $1 billion annually are concentrated in a few key states with high-value markets. These states provide the greatest opportunities for agents to close significant deals and earn higher commissions:

• California: Home to luxury markets like Los Angeles, San Francisco, and San Diego, California leads the nation with the highest percentage of top-producing agents.
• New York: With markets like Manhattan, the Hamptons, and upstate areas, New York remains a hotspot for multimillion-dollar transactions.
• Florida: Cities like Miami, Naples, and Palm Beach are attracting luxury buyers, fueling high-value sales. 
• Texas: Austin, Dallas, and Houston have become key markets for agents closing premium deals.
• Colorado: The Denver metro area and high-end mountain towns like Aspen continue to deliver strong sales volume for agents.
• Massachusetts: The Greater Boston area and affluent suburbs offer a strong luxury market with high-demand properties.

These six states are where the majority of high-earning agents operate, making them prime locations for new real estate professionals looking to fast-track their careers. If you’re ready to compete in these markets, focusing your efforts here may significantly increase your odds of success.

Best cities for real estate success in 2025

To achieve remarkable success, real estate agents should focus on cities within the top states known for producing high-performing real estate professionals. These cities continue to lead the nation in luxury real estate sales, multi-million dollar transactions, and strong buyer demand:

1. New York City, NY
2. Los Angeles, CA
3. San Francisco, CA
4. Boston, MA
5. Miami, FL
6. Austin, TX
7. Beverly Hills, CA
8. Aspen, CO
9. Palm Beach, FL
10. Denver, CO
11. Naples, FL
12. Menlo Park, CA
13. Bridgehampton, NY
14. Brooklyn, NY
15. Wellesley, MA
16. Wellington, FL
17. Encino, CA
18. Los Altos, CA
19. Saratoga, CA
20. Southampton, NY

These cities remain at the forefront of the real estate industry, offering thriving markets, high-value properties, and consistent buyer interest. Agents looking to hit $1 million in commissions should prioritize these locations, as they provide ample opportunities for closing lucrative deals and building long-term success in the real estate market.

 

Top 12 real estate brokerages for high-end properties in 2025

Once you’ve chosen your ideal market, the next step is partnering with a brokerage that specializes in high-value and luxury real estate. While boutique brokerages can excel in niche markets, larger national brokerages have established significant market share in luxury real estate. Below are the top brokerages known for producing million-dollar agents and specializing in expensive properties:

• Sotheby’s International Realty
• Coldwell Banker
• Corcoran
• Compass
• Alain Pinel
• Douglas Elliman Real Estate
• Pacific Union
• The Agency
• RE/Max
• Rodeo Realty
• Keller Williams
• Engel & Volker

 

Next: start building your real estate success

Making $1 million in your first year as a real estate agent is an ambitious yet achievable goal. By focusing on high-value markets and adopting proven strategies, you can position yourself for exceptional success in the competitive world of real estate.

Ready to learn more about developing the perfect marketing plan? Check out our next resource: RealXperts: Marketing Strategies for New Real Estate Agents. Discover actionable insights to grow your brand, attract high-value clients, and build a thriving real estate business.