If you’re thinking about changing careers, you might be wondering, “How much does the average real estate agent make?” Knowing how much you may expect to earn before beginning a new career will help you understand how much to save and how to manage your budget during the career transition time. We polled real estate agents around the country to find out how much they make every year and what factors influence how much they make.
Whether you’re fascinated about real estate’s investment possibilities or you’re tired of infomercials offering little-known ways to “benefit from your property,” it’s worth studying, for real, how real estate builds wealth.
Rather than offering unusual real estate investment ideas or a primer on homeownership for first-time purchasers, this article will emphasize how to generate money through real estate. It will cover both basic tactics that haven’t changed in millennia, no matter what type of gloss the gurus of the day try to put on them, and special opportunities that have emerged recently.
A real estate agent’s income is greatly reliant on a variety of factors, including niche, years of experience, the number of hours worked each week, and even happiness. The answer to the question “How much does the average real estate agent make?” is not as straightforward as providing a dollar amount.
To get an accurate number, you must consider where they lie on the spectrum for a number of different criteria.
How much does a typical real estate agent make? One method to find out is to look at what agents who work an average number of hours make. Longer hours in real estate usually equate to higher compensation. According to our poll, agents who work 40 to 50 hours a week can expect to earn around $68,000. Agents who work 51 to 59 hours per week can expect to make roughly $85,000 per year. It should be noted that these are simply estimations and that various factors can influence these figures.
You would not believe that job contentment has a huge impact on how much a real estate agent makes, but data reveals that happy agents make more than three times as much as unhappy agents.
The typical salary of a real estate agent varies depending on the specialty. A residential real estate agent’s salary may be lower than that of a commercial real estate agent. In general, average real estate incomes are in the $70,000 range, with some niches, such as property management or affordable housing, having significantly lower earnings and others, such as commercial or relocation, having significantly greater earnings.
In real estate, greater experience often indicates a higher salary for a real estate agent. In the middle of their career, a real estate agent may earn between $60,000 and $80,000 dollars. Again, this figure is influenced by various factors that affect the typical real estate agent’s profits.
What brokerage you choose to work for is another factor that can affect the typical real estate agent’s income. A typical real estate agent working for a national franchise, for example, may expect to earn $52,064 per year. Real estate agents, who report being self-employed, on the other hand, make an average of $77,559 each year. Earnings can vary greatly based on the type of brokerage or work position.
One of the most important aspects of becoming a successful real estate agent is earning your first commission as soon as possible. Before obtaining their first client, real estate brokers frequently have to pay several thousand dollars in expenditures (licenses, seminars, marketing, and signs). The longer it takes to earn your first commission, the more money you’ll lose without being rewarded.
Let your friends and relatives know you’re a real estate agent to ensure you make money rapidly. Inform individuals using social media and personal contact. Let folks know you’re an agent if they suggest they’re thinking about moving. It may sound unpleasant, but you must spread the message. After a few transactions, you should begin to see your business develop through referrals.
If you need money before you can earn your first commission, you could look for hourly work in a real estate agency. Whether you’re doing administrative work, advertising work, or marketing, you’ll be acquiring experience and earning money in the proper industry. Hopefully, your position at a real estate brokerage will allow you to devote some time to grow your career as an agent.
In general, you must be licensed in your state to work as a real estate agent. If you reside near a border, you probably need licenses in several states. The qualifications for a license differ by state, but you must generally pass a test and be at least 18 years old. The exam will cover a variety of topics, including real estate legislation unique to the state in which you will be licensed.
Aside from your state license, no further certifications are required. While it is necessary to continue learning about your area in order to advance as a real estate agent, receiving the certificate is unlikely to bring you any new business.
Your earnings don’t have to be defined by what’s “normal” for your niche, degree of expertise, or amount of effort you put into your profession. There are always methods to overcome the odds and earn more than the average. We’ve seen that agents who earn more excel at managing their marketing dollars, generating quality leads, winning real estate listings, and remaining current on best practices.