4 answers
Keon
Student
Mesa, Arizona
5
Questions
Asked
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How much money do you make as a Realtor.
I like realtor. I like houses! #money #income #realtor
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4 answers
Karen Hare
Servicing/Lending
5
Answers
Arlington, Texas
Updated
Karen’s Answer
Hello Keon,
Being an agent allows for a lot of flexibility. So your income is flexible as well. This is a job you can do on weekends while having another full time job or can you work this job full time. An agent is paid on commission and typically it is 3%, but that varies on the area you are working. If you happen to be an agent for both the seller and the buyer, that could be about 6% commission, but again that varies.
Another thing to consider, is an agent works for a broker (at least in Texas). The broker makes the money and determines what his/her agents make. So being a broker is more profitable, however if there is a law suit, the broker is the one going to court.
To determine your possible income, think of the house prices for the area you will be working and figure out the percent commission for the average house price. Usually, you can sell more lower priced houses in a given year. There is more involvement with selling a higher dollar house. Thus a 7 figure house is a lot more work, but a much higher payout.
Good luck and I hope this helped a little,
Karen
Being an agent allows for a lot of flexibility. So your income is flexible as well. This is a job you can do on weekends while having another full time job or can you work this job full time. An agent is paid on commission and typically it is 3%, but that varies on the area you are working. If you happen to be an agent for both the seller and the buyer, that could be about 6% commission, but again that varies.
Another thing to consider, is an agent works for a broker (at least in Texas). The broker makes the money and determines what his/her agents make. So being a broker is more profitable, however if there is a law suit, the broker is the one going to court.
To determine your possible income, think of the house prices for the area you will be working and figure out the percent commission for the average house price. Usually, you can sell more lower priced houses in a given year. There is more involvement with selling a higher dollar house. Thus a 7 figure house is a lot more work, but a much higher payout.
Good luck and I hope this helped a little,
Karen
Eric Goldberg
Attorney
2
Answers
Bethesda, Maryland
Updated
Eric’s Answer
I was a residential real estate agent before I went to law school. The short answer is, your earning potential is unlimited.
Now here's the long answer. Becoming a real estate agent is the same as starting your own business. There are startup costs. You need to get licensed. You will need to work for a real estate broker. Real estate agents must work under the supervision of a broker in most states. Many agencies charge agents for their desk space, telephone, business cards and so forth. You may not make any money for a while after you start out, maybe months or longer. There may be some agencies that would hire you as an assistant - putting up signs, prepping houses for open houses, etc. -- until you learn the ropes. But the bottom line is that you will need a cash cushion to start out.
The way to make money selling real estate is to take listings. This is because of the Multiple Listing Service. Once you take a listing and enter it into the MLS, every Realtor will have access to the listing and it becomes part of their inventory. Taking listings is a much better use of your time than representing buyers.
Here's how the commission typically works. The seller typically pays a commission of 6% of the sale price of the house to the listing agent. Say you take a listing for a $300,000 house and sell that same listing yourself. The seller would pay 6% of the sales price , i.e., $18,000 in commissions, to the broker at your agency. Typically an agent that is starting out would split that commission with the broker, so you would gross $9,000 on that sale. Out of that $9,000 comes your advertising expenses (typically borne by the agent, not the seller), depreciation of your car, telephone and internet expenses, and so forth. As you gain more experience and become more self-sufficient, you can renegotiate your commission sharing arrangement with your broker. Some top producing agents I know have negotiated an 80/20 split.
Now say you take the same listing and another agent sells it. The seller pays $18,000 in commissions. The selling broker gets half (3% or $9,000) and the buying broker gets half. You would split the $9,000 50/50 with your broker. And your expenses would come out of your $4,500.
Also, keep in mind that typically, a residential real estate agent's busiest days are Saturdays and Sundays. You really need to be willing to give up your weekends to be successful in this business.
Oner final point. If you are serious about getting into real estate, don't do it part time. You need to make this a full time job if you want to make it a career.
Read "How To Master The Art of Selling" by Tom Hopkins. He was a legend.
Visit a real estate open house on a weekend and if there's no one around, talk to the agent about her/his job.
Figure out how much it costs to take the real estate licensing course and exam.
Now here's the long answer. Becoming a real estate agent is the same as starting your own business. There are startup costs. You need to get licensed. You will need to work for a real estate broker. Real estate agents must work under the supervision of a broker in most states. Many agencies charge agents for their desk space, telephone, business cards and so forth. You may not make any money for a while after you start out, maybe months or longer. There may be some agencies that would hire you as an assistant - putting up signs, prepping houses for open houses, etc. -- until you learn the ropes. But the bottom line is that you will need a cash cushion to start out.
The way to make money selling real estate is to take listings. This is because of the Multiple Listing Service. Once you take a listing and enter it into the MLS, every Realtor will have access to the listing and it becomes part of their inventory. Taking listings is a much better use of your time than representing buyers.
Here's how the commission typically works. The seller typically pays a commission of 6% of the sale price of the house to the listing agent. Say you take a listing for a $300,000 house and sell that same listing yourself. The seller would pay 6% of the sales price , i.e., $18,000 in commissions, to the broker at your agency. Typically an agent that is starting out would split that commission with the broker, so you would gross $9,000 on that sale. Out of that $9,000 comes your advertising expenses (typically borne by the agent, not the seller), depreciation of your car, telephone and internet expenses, and so forth. As you gain more experience and become more self-sufficient, you can renegotiate your commission sharing arrangement with your broker. Some top producing agents I know have negotiated an 80/20 split.
Now say you take the same listing and another agent sells it. The seller pays $18,000 in commissions. The selling broker gets half (3% or $9,000) and the buying broker gets half. You would split the $9,000 50/50 with your broker. And your expenses would come out of your $4,500.
Also, keep in mind that typically, a residential real estate agent's busiest days are Saturdays and Sundays. You really need to be willing to give up your weekends to be successful in this business.
Oner final point. If you are serious about getting into real estate, don't do it part time. You need to make this a full time job if you want to make it a career.
Eric recommends the following next steps:
Valerie F
medical student
161
Answers
Philadelphia, Pennsylvania
Updated
Valerie’s Answer
It is totally up to you how much money you make as a real estate agent. The more houses you sell, the more money you make make. Also, the more expensive the houses are that you are selling the more money you will make. Therefore, you will want to make lots of connections so that your clients tell their friends and families about you! I recommend watching selling sunset on Netflix to see the max amount of money you can make.
Emmy Leone
18
Answers
Updated
Emmy’s Answer
Hello Keon,
The amount you make is dependent on many factors such as where you live, your past experience, and your level of education among other things. You can utilize a site such as https://www.payscale.com/my/survey/choose. When you fill out the survey you will be given a customized estimate of what may be reasonable.
Best wishes,
Emmy
The amount you make is dependent on many factors such as where you live, your past experience, and your level of education among other things. You can utilize a site such as https://www.payscale.com/my/survey/choose. When you fill out the survey you will be given a customized estimate of what may be reasonable.
Best wishes,
Emmy