Real Estate Agent Salary
Before you consider pursuing any new career path you’ve probably got one key factor in mind: how much am I gonna get paid? So if you’re looking into the real estate game, whether as a full time profession or a profitable side hustle, you need to know what a real estate agents earning potential is.
If after reading this article, you should try your luck at a real estate practice test to see if this is something you can handle!
Do real estate agents make good money?
As with most things in life, “it depends”.
Salaries for real estate agents is directly tied to the amount of hustle the put into their profession. The real winners don’t separate their life from the job. They eat, breath and live selling real estate and becoming a cornerstone in their community. They will become leaders in large local churches, they will volunteer at local organizations, host events and sponsor local high schools and much more.
Of course this transition does not happen over night, but as you can imagine, there is for more to it than just getting a license and thinking you will be successful.
There is an ugly side to this that nobody wants to talk about and that is most people starting their real estate careers are broke and have a scarcity mindset. In order to be a rock star agent, you must start getting obsessed with not only real estate, but helping people. Always be looking for ways to serve your broker, the company you are working for and your client. This is the way to sling shot your career and start making “good money”
How do real estate agents get paid?
Most people have no idea, so if you already know, your ahead of most people reading this article. Real estate agent salaries are not really a salary at all. They are paid a commission from the broker they work for. Now there may be an agent or two that get a salary, but normally this career is all commission based.
This means that unlike a traditional career, the money you take home is going to be a direct reflection of your performance.
The better you do, the more you earn.
For residential real estate, a commission is usually 6% that is split between the buyers agent and the sellers agent. So, a home that sells for $400,000 will net $24,000 for both brokerages and the agents involved in the title transaction.
This percentage can vary widely depending on the sales price of the house, the agent involved, and ultimately the customer.
I’ve seen real estate commissions for as low a 1% on multi-million dollar deals. These types of commissions are normally reserved for real estate deals approaching eight and nine figure commercial properties.
How long does it take to become a real estate agent?
It normally takes 3 to 7 months to become an agent. Every State has a requirement to be a licensed real estate agent and this only takes place after you pass your real estate exam. Sometimes, people have a hard time passing their real estate exam and will need to go through our real estate exam prep or take their courses again.
We were able to survey 100 career agents who were able to share their experience. The most popular answer was 5 months.
Average Real Estate Agent Earnings
Keep in mind that these are averages and for all intents and purposes, meaningless for what you will make. This is really more reflective of the median sales prices of homes in each State rather than the hard work of the agent in each area. There are plenty of agents who earn more and plenty who earn less. As mentioned, your earnings are a direct result of your customer sanctification and the value you bring to the table. The real estate statistics are reported below. We can take a look at what the average real estate agent wage is. According to the Bureau of Labor Statistics, the median annual pay for real estate agents in 2019 was $49,880. That number is nationwide, and the average earnings vary greatly from state to state:
Factors That Influence Real Estate Agent Salary
As we have shared before, any any company the agent and the broker h have a lot of control over how much money you make as an agent. Here are some of the top factors that contribute to your earnings.
The Time You Put In
If an average commission of just shy of $50,000 makes you think twice about getting into real estate, keep in mind that plenty of agents work part time, which brings those numbers down significantly. A cool share from Real Estate Express revealed that the more time agents put in to their work, the more money they brought home every year.
On average, agents who worked less than 20 hours per week earned a little over $32,000. Those who worked up to 40 hours per week earned more than the average, at around $57,500. The best money went to the agents who put in more than 60 hours per week, who averaged a $123,024 according to the survey.
So if you want to take the job seriously and work hard, you can easily surpass the average of over $100,000 per year!
Since your earning potential is directly correlated to your ability to perform well, it makes sense that you are likely to increase in a real estate agents salary as your experience in the field grows. An entry-level agent can expect to make around $44,000, while this average increases by more than $30,000 by the time you’ve reached twenty years in real estate.
Obviously, years alone aren’t going to grow your salary. This isn’t a cushy government job in which you get a de facto pay bump every year. The idea is that as you gain more experience in your market, you learn better strategies, build strong customer bases, and find ways to make more efficient use of your time.
Not all property is created equal. As such, than others for agents. This could be due to volume of sales, higher price tags, or other factors. Commercial real estate has the highest average earnings (around $91,000 annually). Other top earning markets to consider include green properties, investments (especially international), and buyers who are relocating for a higher salary .Of course, niche values will vary from location to location. So your best bet is to research your area closely to find opportunities that are both lucrative and available. The more you can become an expert in your niche and establish yourself as the go-to agent in your area, the higher your real estate salary will grow.
What Real Estate Brokerage Pays The Most?
This is the wrong question to ask! You will have so many options and decisions to make when deciding what real estate broker to work for, but make sure your commission split is not the most important question you are asking. This is a big mistake real estate agents make. However, your mentor and relationship you have with your broker will set up your future as a real estate agent.
Evaluate the work culture at the brokerage. Are these people who will share their real estate knowledge with you? Will they share tips of the local real estate market or will they give you the title of a competitor? Are you getting any leads from them and are they continuing your real estate education? That is the real secret sauce when deciding who to work for. Do not go to work for someone just because they are offering a higher commission.
It’s easy to fall into the hype when all they are doing is using puffing tactics.
Quality of Life For A Real Estate Agent
This section should not be at the end of this article, because it is by far the most important factor in the real estate career. While money is important, what is better than working on your own schedule so you can put your family and hobbies first in your life. A career in real estate gives you the freedom you have been searching for in this aspect. You will always make your son’s real games or your daughter’s dance recital. Depending on the real estate company, they may share in these values and give you a fantastic quality of life that is greatly balanced with your career based on your skills.
Compensation from your real estate broker is nice. Checking goals off your list (like getting your real estate license) is nice. But no business employees are going to be happy with any amount of income if they can not travel, work on a real estate degree and chase other dreams they have.
If you find that being an agent is too stressful, you may want to look into a less demanding career like a real estate property manager.
In closing, if you are considering a career in real estate, we here at Real Estate Exam Ninja invite you to reach out to our assistant with any other questions you may have about being a real estate agent.
If you are a estate agent real, feel free to share your salary below!
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