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hailey
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Elk River, Minnesota
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How much money do realtors usually make per year?
How much money do realtors usually make per year
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3 answers
Doc Frick
Career Coach and Mentor
1590
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California, CA
Updated
Doc’s Answer
When considering a career in real estate Hailey, it is important to understand the relationship between different roles and how payment works. Real Estate Agents split commissions with Real Estate Brokers after helping a client buy or sell a property. By learning more about how real estate agents split commissions with brokers, you can determine the percentage of earnings you receive for each buying or selling activity at your broker.
EXAMPLE YOUR THE REAL ESTATE AGENT
A homeowner sells their home for $500,000. $500,000 x 6% = $30,000. $30,000 becomes the amount that Real Estate Brokers need to split amongst one another. After each Real Estate Broker receives its portion of the total commission from a home sale, the Real Estate Agents and Brokers involved in both the buying and selling of a home receive their earnings. In this example you as the Real Estate Agent and your broker decided to do a 50/50 split then each off you would earn $7,500 from the original $15,000 commission.
Using the commission split example above Hailey and you represented the buyer or seller of 12 homes a year as a Real Estate Agent you could potentially make $90,000 a year.
$7,500 x 12 = $90,000*
*Real estate commission percentages may vary depending on the size of the property being bought or sold, the number of agents involved in the process and the commission rates decided upon by broker.
Hope this was helpful Hailey
EXAMPLE YOUR THE REAL ESTATE AGENT
A homeowner sells their home for $500,000. $500,000 x 6% = $30,000. $30,000 becomes the amount that Real Estate Brokers need to split amongst one another. After each Real Estate Broker receives its portion of the total commission from a home sale, the Real Estate Agents and Brokers involved in both the buying and selling of a home receive their earnings. In this example you as the Real Estate Agent and your broker decided to do a 50/50 split then each off you would earn $7,500 from the original $15,000 commission.
Using the commission split example above Hailey and you represented the buyer or seller of 12 homes a year as a Real Estate Agent you could potentially make $90,000 a year.
$7,500 x 12 = $90,000*
*Real estate commission percentages may vary depending on the size of the property being bought or sold, the number of agents involved in the process and the commission rates decided upon by broker.
Hope this was helpful Hailey
Your advice was so helpful!
hailey
Paul Goetzinger MPA
Academic and Career Consultant and Freelance Writer
745
Answers
Seattle, Washington
Updated
Paul’s Answer
The occupation is up and down, depending on the region and the state of the economy. But, on average, a realtor makes:
$84,500 dollars per year.
$84,500 dollars per year.
Your advice was so helpful!
hailey
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
6183
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Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hello Hailey,
Median Annual Earnings of Real Estate Agents
According to the Bureau of Labor Statistics (BLS), the median annual earnings for real estate agents in 2020 was $49,040. The lowest 10% earned less than $25,340, while the highest 10% earned more than $112,590. It is important to note that these figures represent gross income and do not account for expenses such as marketing, transportation, or office expenses that realtors are typically responsible for covering themselves. (Bureau of Labor Statistics - Real Estate Brokers and Sales Agents)
Factors Influencing Realtor Income
Realtor income can vary widely based on a number of factors. These include:
Experience: As with many professions, realtor income tends to increase with experience. According to the National Association of Realtors (NAR), the median gross income for realtors with two years or less of experience is $9,100, while those with 16 or more years of experience earn a median gross income of $75,000.
Specialization: Some realtors specialize in certain areas of the market, such as commercial real estate or luxury homes, which can lead to higher earnings.
Location: Real estate markets can vary widely from one location to another. For example, realtors working in high-value markets such as California or New York may earn significantly more than those working in lower-value markets.
Hours Worked: Realtors who work more hours may earn more income, as they have more opportunities to make sales.
(National Association of Realtors - 2021 Member Profile)
Expenses and Benefits
While realtor income can be substantial, it is also important to consider the expenses associated with the profession. These can include marketing costs, transportation expenses, office expenses, and membership dues for professional organizations. Realtors are typically independent contractors and do not receive benefits such as health insurance or retirement contributions from their clients or brokerages. (Realtor Magazine - How Much Do Realtors Make?)
## Authoritative Reference Titles
Bureau of Labor Statistics - Real Estate Brokers and Sales Agents
The Bureau of Labor Statistics provides detailed information on the employment outlook, job duties, and earnings for real estate agents and brokers in the United States. This information was used to provide a general overview of realtor earnings and how they can vary based on factors such as experience and location.
National Association of Realtors - 2021 Member Profile
The National Association of Realtors conducts an annual survey of its members to gather data on their employment status, income, and other characteristics. This information was used to provide a more detailed breakdown of how realtor income can vary based on factors such as experience and specialization.
Realtor Magazine - How Much Do Realtors Make?
Realtor Magazine is a publication produced by the National Association of Realtors that covers news and trends in the real estate industry. This article provides an overview of realtor income and how it can vary based on factors such as expenses and hours worked. It was used to provide additional context and insights into the financial aspects of being a realtor.
GOD BLESS!
James!
Median Annual Earnings of Real Estate Agents
According to the Bureau of Labor Statistics (BLS), the median annual earnings for real estate agents in 2020 was $49,040. The lowest 10% earned less than $25,340, while the highest 10% earned more than $112,590. It is important to note that these figures represent gross income and do not account for expenses such as marketing, transportation, or office expenses that realtors are typically responsible for covering themselves. (Bureau of Labor Statistics - Real Estate Brokers and Sales Agents)
Factors Influencing Realtor Income
Realtor income can vary widely based on a number of factors. These include:
Experience: As with many professions, realtor income tends to increase with experience. According to the National Association of Realtors (NAR), the median gross income for realtors with two years or less of experience is $9,100, while those with 16 or more years of experience earn a median gross income of $75,000.
Specialization: Some realtors specialize in certain areas of the market, such as commercial real estate or luxury homes, which can lead to higher earnings.
Location: Real estate markets can vary widely from one location to another. For example, realtors working in high-value markets such as California or New York may earn significantly more than those working in lower-value markets.
Hours Worked: Realtors who work more hours may earn more income, as they have more opportunities to make sales.
(National Association of Realtors - 2021 Member Profile)
Expenses and Benefits
While realtor income can be substantial, it is also important to consider the expenses associated with the profession. These can include marketing costs, transportation expenses, office expenses, and membership dues for professional organizations. Realtors are typically independent contractors and do not receive benefits such as health insurance or retirement contributions from their clients or brokerages. (Realtor Magazine - How Much Do Realtors Make?)
## Authoritative Reference Titles
Bureau of Labor Statistics - Real Estate Brokers and Sales Agents
The Bureau of Labor Statistics provides detailed information on the employment outlook, job duties, and earnings for real estate agents and brokers in the United States. This information was used to provide a general overview of realtor earnings and how they can vary based on factors such as experience and location.
National Association of Realtors - 2021 Member Profile
The National Association of Realtors conducts an annual survey of its members to gather data on their employment status, income, and other characteristics. This information was used to provide a more detailed breakdown of how realtor income can vary based on factors such as experience and specialization.
Realtor Magazine - How Much Do Realtors Make?
Realtor Magazine is a publication produced by the National Association of Realtors that covers news and trends in the real estate industry. This article provides an overview of realtor income and how it can vary based on factors such as expenses and hours worked. It was used to provide additional context and insights into the financial aspects of being a realtor.
GOD BLESS!
James!