Have you ever wondered how much real estate agents earn? If yes, then you are in the right place. Because this blog has everything you need to know about the real agent’s earning statistics and their strategies to earn lavishly than any other business.
The real estate industry fosters ample job opportunities that are an ideal match for almost anyone interested in chasing a new career path. A real estate broker and a real estate agent are the two most in-demand careers within the industry. And indeed for good reason! Because both careers have an immense likelihood for progress and have a competitive salary package.
Agents are often confined behind the office desk. They are always occupied with building ties with clients and visiting potential homes. They ought to function below a real estate brokerage, who are capable of operating independently to trade homes to customers or handling a brokerage and their staff agents.
There exist many differences between an agent and a broker in which salary is the most dominant one – especially if you are opting for a new career and deciding between the two.
However, the earning profile of individual real agents varies due to some factors. And these are…
Education, experience, effort, motivation, location, niche expertise, and type of agent: full-time or part-time.
A real estate agent’s earning is commission-based and is decided by the count of completed transactions. Usually, agents negotiate the real estate agent commission breakdown when they begin working at a brokerage.
For instance, you have negotiated the house sell price at $300,000 and you gain 6% per sale.
Let’s say you successfully negotiate the sale of a $300,000 house and what you make per sale is 6%. The commission will first be divided between the buying and selling agent. And if you are from the selling side, a 3% commission makes up to $9,000. When the amount is shared on a 60/40 division with your broker, $5,400 is your home take value. However, the amount of commission is negotiable with the exposure to experience.
Agents don’t make a substantial amount of money when they start their career, because they are struggling to make a clientele at that time. However, over time they understand the ways to generate leads resulting in higher earning. The recent data by BLS (Bureau of Labor Statistics) showed that in 2018, real estate agents’ average annual income was $50,300. The same data listed some best locations where real estate agents made adequate earnings. These areas are:
While on the other hand, the locations where agents couldn’t make appreciable earning are:
This question may be whirling around your mind, so here is the answer. An analysis showed that $48,930.00 is the median national salary for a real estate agent. However, for a broker, the figure fluctuated gradually and reached $59,720.00 that is $10,000 more than that of a real estate agent’s one. This analysis stressed the fact that brokers though make more money on average than real estate agents.
Here, you may be wondering what are the behind forces that determine how much real estate agents make, so need not worry. Read on to discover those attributes.
As up till now, we have already come to know that agents’ earning fluctuates due to varying attributes. Without further ado, let’s unveil the factors successively.
When they step into the industry, they are making even less than the national average salary estimation.
Because it is a non-arguable fact that a career in real estate enjoys its autonomy and potential growth when you have networking – connections and relationships. It takes several years for the agent to sustain and survive the market and build trust with their connections.
Though it is a fact that a professional in the real estate industry has a break from a typical 9 to 5 job, however, they still need to put in extra effort and time to see lucrative results. People who opt for their career in real estate suffer time management when they shift from their conventional office jobs to the real estate business.
Salaries vary with varying locations. This happens because the real estate market is different in different states. For instance, an agent who works in NYC will have more work and will make more commission from higher-priced houses than the agent who works in a relatively small town of Kansas. There exists an equation for an agent’s salary when keeping location into account that is:
Profit of a higher demand and fast-paced purchases in a city >>> profit of slower-paced and lower demand purchases in rural areas
Agents work in different types of niches. These varying niches bring varying commissions based on the demand and current state of the real estate market. The popular types of niches are penned below:
Luxury Real Estate Agents: These types of agents typically work with uber-wealthy individuals who possess assets of $30 million or beyond. The possessed asset worth already dictates that they are the world’s top wealthiest individuals and it is challenging to enter into the real estate field without having connections and a network already built.
Industrial Real Estate Agents: These agents focus on working with clients who intend to purchase property for warehouses and manufacturing. Industrial and commercial buildings differ because of the zoning of the property and the construction of the buildings.
The scripted discussion is almost satisfying to all your concerns regarding the real estate agent’s earning. In a nutshell, we can conclude that the key to becoming successful and making more out of this business depends upon the money, time, and effort you put into your career. No doubt, efforts lead you to long-term success and sustainability. The Long Island Real Estate Agents have already survived the initial years and are now standing as the most functional in the town.