If you’re interested in becoming a real estate agent, it may have crossed your mind that this is a great way to make some good money. But the question of how much do real estate agents make?
This blog post will answer that question and give an inside look at what you can expect when starting out as a real estate agent.
What Is A Real Estate Agent?
A real estate agent is a person who makes a living by helping people buy and sell homes. They are the go-between between home buyers and sellers, often negotiating deals or just showing properties to interested parties.
This is an easy job for those in urban areas with high prices because there’s always someone looking to trade up their current house for something more expensive.
But they can earn less in rural areas where houses might be cheaper but at a lower volume so it would take longer to find one buyer or seller, which then eats away into commissions on both ends.
What Does A Real Estate Agent Do?
Real estate agents are expected to be able to communicate effectively, both verbally and in writing. They need a deep understanding of the market they operate in so that they can advise their clients on what properties will sell for which prices.
Besides this background knowledge, realtors also have access to tools like listings databases or trackers where’s easy enough for them to check out recent comparable sales data or even find properties before they’re officially listed with MLS (Multiple Listing Service).
In many cases, buyers don’t work directly with sellers but instead through an agent representing one side or the other.
Real estate agents are experts in the housing market. They help clients find a house that best meets their needs and budget. Real estate agents also have experience in negotiating the best possible price for properties.
If a homeowner is selling a home, a real estate agent will help them put the home on the market. If someone is buying a home, a real estate agent will find them the home of their dreams.
How Much Money Can You Make As A Real Estate Agent?
The typical real estate agent salary is $39,000 to more than $100,000 a year.
Some agents have the opportunity for bonuses and commissions based on their individual performance. Agents also get paid by commission when they sell houses or land-based properties such as commercial buildings and apartments.
The amount of money an agent earns depends on how much time he or she dedicates to selling property each week and what type of transactions are involved in his work.”
Most real estate agents work on commission. When you work on commission, you earn a percentage of the money you make for your brokerage.
Commission earned by real estate agents ranges from 2% to 6%. The higher commission is offered in competitive markets where there are many buyers looking for homes.
The amount of money you take home depends on the expenses involved in a real estate transaction.
Expenses for real estate agents could be the cost of the office space and overhead, any marketing expenses like brochures or flyers, membership dues in a professional association, gas, insurance, and taxes.
Not all real estate agents make a lot of money. The amount of money you make can depend on a few different factors. One is the commission split between you and your broker, which could be anywhere from 40% to 80%.
Another factor is how many homes you actually sell. A new real estate agent sells about five to ten homes per year, while an experienced agent sells about twenty or more.
The commission can also vary depending on the price of the home you are selling. The higher the home price is, the higher the commission will be.
The Benefits of Being A Real Estate Agent
The benefits of being a real estate agent vary from one person to the next. Some people like how much they are in control, while others enjoy flexible hours and time off.
There is also no limit on what you can sell. You could work with commercial property or farms for sale as well if that’s something that interests you more than residential properties.
Most times, real estate agents are independent contractors. That means, they don’t get a regular paycheck. They make money when they sell properties or help their clients find and buy property, so it can be tough to predict how much an agent will earn in any given month (or year).
As an independent contractor, you are responsible for all of your expenses. The biggest expense is taxes. Real estate agents are responsible for calculating and paying their own taxes at the end of the year.
Benefits such as healthcare, 401k, and social security are not given to realtors so agents are responsible for maintaining their own benefits.
Why Should You Become A Real Estate Agent?
Some people are drawn to real estate because they can be their own boss. In addition, there is a lot of variety in the type of properties you can list and sell.
Real estate agents also enjoy more flexibility than some other professions since most hours spent on an agent’s job don’t have to take place during business hours like when working for someone else. Agents who work as independent contractors set their own schedules.
The pay seems fair overall but it all depends on how many transactions that agent completes each month or year which makes estimating net worth difficult at times.
Becoming a realtor may sound appealing, but it’s not easy money by any means! There are many responsibilities outside of just selling property that needs to be taken into consideration.
Real estate can be difficult for those who have no experience so you should be prepared. Real estate is hard because it is simply a very difficult industry to get going in, but it can be rewarding in the end.
Real Estate Agent Salary Information
The average age of a realtor is forty-five, but they typically earn about $75,000 a year.
Rates vary from state to state and city to city so it is important that you research the market in your area before pitching yourself as a real estate agent.
A broker’s salary can be up to three times an average agent’s salary depending on how much real estate they sell.
Brand new real estate agents typically sell a few houses a year, therefore their salary can be a lot less than an experienced agent.
How To Get A Real Estate License
To become a real estate agent you need to do the following:
- Take an approved real estate agent pre-license course.
- Pass the state exam.
- Obtain a real estate license through your state real estate commission
- Join a brokerage
If you want to make a career change or just need a new job, being an agent can be the right move for you.
There are many benefits of becoming one including making great money and using your skills in sales to help people find their dream home.
Keep reading my blog posts if that sounds like something you’re interested in! You can also visit the Chastin J. Miles YouTube channel where I have tons of great information as it relates to being a real estate agent.