Real estate agents are professionals who look after real estate transactions between buyers and sellers. They can be classified as commercial and residential real estate agents.
This job offers a lot of excitement because a real estate agent deals with different clients and numerous properties every day. They get to communicate and work with several people, need to manage their own tasks, satisfy buyers and sellers, and crack the property deals successfully.
Coming to earnings, a real estate agent makes money through commission, typically paid by the seller. Usually, the commission is a percentage of the total sale price, which can be anywhere between 5 to 6%.
The salary of real estate agents is impacted by many factors varying from their personal aspects to the professional front of the deals they are closing. For instance, their education, certifications, additional skills, and the number of years spent in the profession matter similarly, the nature of the deal, the number of transactions closed, the commissions earned, the size of the team, and the split with the broker can also influence the salary of a real estate agent.
For the job of the real estate agent, the observed annual salaries are as high as $150,000 and as low as $12,500. Across the United States, the maximum number of real estate agents are making between $52,000 (25th percentile) to $100,000 (75th percentile). The average salary for a real estate agent is $104,592 per year in the United States. While the average real estate agent salary with 1-2 years of experience is $94,295, the average salary for an agent with more than ten years of experience is $123,721. This higher variation in the average pay suggests that there may be many opportunities for advancement and increased salary based on skill level, location, and years of experience.
Out of all the states of the United States, there are only eight states that offer a salary for a real estate agent job above the national average. The list is topped by Washington, followed by Maryland and Nebraska, respectively, with the annual salary offered by Washington being $92,287, Maryland's $91,113, and Nebraska's $89,212. Washington beats the national average by 11.3%, making it the best state for real estate agents for the salary offered.
The jobs requiring Market Analysis skills have increased by 1400.00% since 2018. Real Estate Agents with this skill earn +61.67% more than the average base salary.
Some other skill sets that can multiply your salary manifold are Sales Experience, Market Analysis, Google Ads, and WordPress.
Whether you are looking into this job as a part-time option or a brand new career, there are multiple aspects, in terms of earning, for you to explore first. But, don't worry, we have got your back!
The average salary for first-year full-time real estate agents is nearly over $83,000, but this can vary immensely. There are reports to support the fact that many real estate agents start their careers by earning very low, but they are able to double up their salary by the end of their first year.
As a known fact, hard work and years of experience can be directly proportional to an increase in income.
The process of earning a salary for a real estate agent might be different from any other industry because being a real estate agent is typically not a salaried job but the one in which agents need to make their own pay. Many brokers pay a commission, while some offer a paid stipend as a part of their contracts.
The salary of a first-year real estate agent varies vastly depending upon the location or state in which the real estate agent is working. While it is $81,633 in California, the salary for a first-year agent in Florida is around $68,218. Similarly, a new real estate agent could make $95,616 but only $88,954 in New York and $90,404 in Washington.
Unquestionably experience plays the most integral role in growing real estate income, but how to make the most out of the situation will decide your career in the first year itself. And to become a successful real estate agent taking care of marketing, networking, earning strategies, and industry education from day one will take you way ahead of your opponents. To grow your income as a first-year agent, try these ways that will nurture all the factors:
Get Social: Tell everyone that you have become a real estate agent, including your family, friends, associates, neighbors, and most importantly, all your social media contacts. It will not only help you build your network, will give you the chance of mouth-to-mouth publicity, and also provide you an opportunity to get new deals.
Focus on Customer Service: Don't just concentrate on buying and selling properties of your clients, but also get to know their concerns, likes, dislikes, and dreams so you can get the best offer available for them. It can pay off in spades as it will increase your chances of getting referred to other people by your more-than-satisfied clients, which can be your best free tool for marketing.
Keep Learning: The real estate world is constantly evolving, so you need to keep on learning to match its pace, and there are numerous ways to do that. You can learn through various online courses available to beat the competition, or you can go for certifications and can become specialized in a specific niche. Also, getting a mentor can be one of the best ways to learn from their valuable experience-based industry wisdom.
Get Creative: Offer something unique to stand out from your competitors. It can be anything from video marketing for each client to a blog to showcase your knowledge about the industry. Or you can put on show the testimonials of your previous clients about their experience and who are willing to comment and share your posts. Anything will work as long as it is capable of attracting the attention of your potential customers.
Make Real Estate Your Plan B: It is normal to keep Plan B for yourself, but if you want to succeed as a real estate agent, you need to understand all the in and out of the real estate industry while learning and optimizing your real estate sales. To be able to pay your bills in your first year, instead of keeping any other plan B, get yourself an hourly job doing anything in real estate. It is the best way to earn while being totally devoted to the industry and learning everything from the latest trends to expert tips.
Getting into a real estate agent requires a giant leap of faith and a lot of investment of time and money. And that is the reason why some people decide to follow this career part-time while continuing their steady income job. Also, industry veterans may find the real estate agent job as an excellent part-time option post-retirement or as an alternative or maybe a way to balance work and personal life.
If you are taking up the real estate agent job part-time, then you have to give your 100% to generate business as paperwork cannot lead you to money-making. And you will need to understand that, during your journey, you will have to lame some sacrifices to earn your salary or commission. For instance, you may have to give up some time off or your weekends or vacations to know the ropes and build your real estate business. Also, you will have to make your peace with the naysayers in the business who claim you cannot be effective because you are a part-timer and cannot give the commitment expected in the industry.
Agents generally work on commission, although some may earn a salary plus commission. The part-time agent who works less than 20 hours per week earns an average salary of $43,889, while the one who works for 21 to 39 hours weekly makes $72,398. Real estate agents working for 40-50 hours every week get an average salary of $113,054, whereas one working for 51-59 hours every week earns $143,469, and a part-time agent dedicating more than 60 hours per week gets $172,325 as an average salary.
Picking a real estate agent is quite a big deal for any newcomer in the industry, be it part-time or full-time. So, always choose wisely!
In this article, you will get information about the salaries of experienced, new, and part-time real estate agents, the factors that can impact and improve their income, and other surprising knowledge.
Top 15 Real Estate Books for Investors in 2022: Gain Power and Knowledge in the Market
How to Get into Commercial Real Estate: An Ultimate Guide for Investors in 2022
Real Estate Business Plan: An Ultimate Guide for Real Estate Developers in 2023
Land Development: A Real Estate Developers Guide for Profitable Property in 2022
5 Facts We Bet You Didn’t Know About Urban Real Estate Center
Real Estate Financing: A Detailed Guide to Options Developers Have in 2022
Is Real Estate A Good Career Path?
Property Manager Salary: A Complete Guide For 2022
Real Estate Agent Salary: Everything You Should Know
Best Real Estate Agents
Join +10K Real Estate Proffesional who get updated