3 answers
Madison
Student
Stockbridge, Georgia
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How much does real estate agents make a year
How much do real estate agents makes a year
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3 answers
Doc Frick
Career Coach and Mentor
1622
Answers
California, CA
Updated
Doc’s Answer
Madison if you're interested in becoming a real estate agent because you've heard it can be a lucrative career path, you've heard right, but your salary can vary greatly. Many agents start out by earning a significantly lower salary but actually double their income once get their first year under their belt. In other words, hard work and years of experience correlate with significant increases in income for active real estate agents.
The process of earning your salary as a first-year real estate agent is different because being a real estate agent is typically not a salaried job, because your paid a commission on homes you represent the seller or buyer. Average commissions are typically split four ways: between the listing agent, their Broker, the buying agent, and the buying agent’s Broker.
COMMISSION SPLIT EXAMPLE
A seller sells their house for $500,000. The commission is 6 percent, or $30,000, this is then split 50-50 between the two real estate agents (Buyer and Seller). In this example your salary or commission for this home sale would be $15,000. Now as a Real Estate Agent you must be represented by a Real Estate Broker. Let's say both the buyer’s agent and listing agent have a 60-40 split on the commission with their brokers. This means your broker keeps $6,000 (40%) of your commission, so your final salary or commission is now only $9,000 or 60% of the $15,000.
Madison to answer your question is: The more homes you represent as a Sellers or Buyers Real Estate Agent the more more your salary or commission will be. Imagine if you represented 12 properties a year at $9,000 each, then your potential salary or commission for the year would be $108,000.
Hope this was helpful Madison
The process of earning your salary as a first-year real estate agent is different because being a real estate agent is typically not a salaried job, because your paid a commission on homes you represent the seller or buyer. Average commissions are typically split four ways: between the listing agent, their Broker, the buying agent, and the buying agent’s Broker.
COMMISSION SPLIT EXAMPLE
A seller sells their house for $500,000. The commission is 6 percent, or $30,000, this is then split 50-50 between the two real estate agents (Buyer and Seller). In this example your salary or commission for this home sale would be $15,000. Now as a Real Estate Agent you must be represented by a Real Estate Broker. Let's say both the buyer’s agent and listing agent have a 60-40 split on the commission with their brokers. This means your broker keeps $6,000 (40%) of your commission, so your final salary or commission is now only $9,000 or 60% of the $15,000.
Madison to answer your question is: The more homes you represent as a Sellers or Buyers Real Estate Agent the more more your salary or commission will be. Imagine if you represented 12 properties a year at $9,000 each, then your potential salary or commission for the year would be $108,000.
Hope this was helpful Madison
Paul Goetzinger MPA
Academic and Career Consultant and Freelance Writer
751
Answers
Seattle, Washington
Updated
Paul’s Answer
It does depend on your region and the current economy.
But on nationwide average they make around $62,000 dollars per year.
But on nationwide average they make around $62,000 dollars per year.
Joseph Berman
Tax Consulting
4
Answers
New York, New York
Updated
Joseph’s Answer
Determining the annual earnings of real estate agents isn't a straightforward task. Since real estate operates on a commission-based system, agents receive a portion of the sales price (usually 3% each) when a deal is finalized. As a result, income can fluctuate, but closing more deals on high-value properties can lead to increased earnings. In the realm of commercial real estate, agents often enjoy more stable pay, and the right positions can help you earn a steady six-figure income. These roles involve working in an office setting, collaborating with businesses to develop properties or secure leases, rather than attending showings and open houses.