When it comes to the elusive question, “how much do real estate agents make” the answer varies. It varies according to how hard you want to work, how you want to work, and even where you live.
On average, most real estate agents are working 35 hours weekly, and their income varies from 9 thousand annually to 90 thousand. It all depends on multiple factors, from years of experience to commission structure.
If this field excites you, read on to get your feet wet and your hunger for commission tickled with this guide on real estate agent salaries.
How Much do Real Estate Agents Make?
The answer to this question differs and depends on several factors. There are several figures floating around the Internet with a wide range.
In a nutshell, a real estate agent will make as much as they are motivated to make.
Realistically, real estate agents making less than 10 thousand annually also had less than two years’ experience.
It’s difficult to feed a family, never mind a person, on that salary alone.
If you want to make more than that, you must be hungry, to understand your market, and learn how to work commission structures in your favor.
You will also need to understand that working in this industry comes with business expenses, which include everything from marketing costs when listing properties to the business cards you give to potential clients. Save some of those costs when using services like the one here.
Commissions are where you will earn most of your money. But if you are expecting to make commissions like the ones you see on “Million Dollar Listing” on your first day, you may be disappointed.
How to Earn Commissions
There are several ways to earn commissions in real estate. Some are functioned at a flat rate, while others are a percentage.
And then there is a difference between a real estate agent and a real estate broker. Many commissions are split between the agents and the broker.
The broker has more clout in real estate and maybe the agent that hires you. They may pay for your business cards and listing prices, and they may not.
But they will expect you to share the goods at the end of it all.
When do Agents Get Paid?
Agents are the sellers, and can not work on their own. Thus, simple agents can not earn their own commission independently.
But a broker can. All commissions are paid to the broker who brokers the deal, and that broker then pays out the agent.
Every commission rate is negotiated between the seller and the broker. It is against antitrust laws for brokers to impose their own rates.
You will make more money being a broker than just an agent.
The commissions are paid for by the seller, and at the time of contract, the commission structure is negotiated. Don’t forget, buyers often have their own agents or brokers working with you, and they will need to get paid too.
So answering, “how much do real estate agents make” will lead to another question: How much do you want to make?
If you are hungry, you can make as much as you want.
Start Your Earning Potential Today
Trying to understand the answer to the question, “how much do real estate agents make” can be a difficult process. There are several factors that go into that answer, with each salary being as individual as the real estate agent.
Besides learning your own gross income, you also have to research the cost-of-living expenses and business expenses for yourself.
The Bureau of Labor Statistics notes that you could make as much as 100 thousand in New York State as an agent, but in the Big Apple, you may have housing costs that exceed that are astronomical.
States such as Montana or Wyoming may give you a lower income, but your living costs could be lower, leaving more in your pocket.
You want a chunk out of every property you sell no matter where you live. Jumpstart your earning potential today in this exciting career, and you’ll never second guess your job market again.