You can not know the annual salary of a typical real estate agent without knowing who they are and what do their job entails? A real estate agent is a professional who deals with the buying and selling of real estate or real property, they are sometimes called a broker. Real estate agents usually work in the best interest of their clients to help them list their properties, rent, buy or sell their client’s property, or accompany their clients to the site when necessary. They are also in charge of drawing up real estate contracts and taking proper maintenance of properties of their client. So, how much does a real estate agent make money? How do they make money? And all other questions you have concerning a real estate agent will be answered in this article. Lets see How Much Do Real Estate Agents Make?
A real estate annual or monthly payment depends on their years of experience. For a top producers, they are known to earn more than any other real estate agent. They usually earn $112,617 in a year for a starter, and before they receive that amount, they must have been able to sell at least a home month.
A real estate agent’s annual salary usually ranges from $85,597 to $112,309, and they must have been able to sell at least two to three real estate properties per month. Their median annual salary according to the U.S bureau of labor statistics is $48,770 per annum, while the mean income goes for $86,490 per annum.
A real estate agent or broker can make more than that, and it is through their annual commission. This commission is disbursed directly when they seal a house sale, and it can range between the figure of 1% to 10%, but an average commission a real estate agent receives is between 5% and 6%. It all depends on the agreement between both parties.
How Can A Real Estate Agent Earn Money
The figures you see online can be misleading. It is not an easy task for a real estate agent to make money, they all pass through a starting journey before the figures begin to multiply to what it is today.
Even if you have been in the real agent field for so long, but the figures are not inspiring enough then you are contemplating what another way you can make money as an agent or broker.
These few ways can help you increase your commission and earn more money than you could ever imagine, and they are listed below.
Become a property manager
Landlords or land owners tend to become their property managers, but what can someone without any property do to earn. All you need to do is allow the property owners to be interested in what you can offer them. Show them results and not ordinary figures.
But you must know that it takes time and a lot of effort before a transaction can be complete. As a property manager, your earnings can range between $59,448 and $65,351 depending on the number of units or homes within your supervision
Third-party price analysis or short sales
House owners sometimes have problems when they decide to sell their homes due to them not being able to pay up their bank loans or some unforeseen issues. As a listing agent, you will help the house owners to negotiate with the bank for a lesser amount.
The listing agents will then have the right to relish the property after the acceptance from the banks. The commission you will earn as a third party ranges on your agreement and is usually 5% of the sale
Become a realtor or a real estate investor
Before you can become a real estate investor or realtor, you must be a member of an investment club or what they sometimes call the National Association of Realtors. This will help you have a connection with other realtors and hence, reducing the risk of you investing your money into a property.
The benefits are more sales, more connections, and more credibility in your niche. House owner entrust their properties to someone people can couch for. This is a very big step in earning quickly.
Become a broker
A broker will stand as an intermediary between real estate agents and house or property owners. They are responsible for helping you trade or exchange your property, or sometimes they help to manage the real estate agent that is connected with their firms.
Through them, they will earn a percentage as agent commission in addition to other administration fees they are entitled to. A broker must possess a license before he can make dealings. Their annual average earnings are $70,215 plus other commissions they earn in the year.
Conclusion
A real estate agent is someone with a professional license that is used in buying and selling real estate or property. A real estate agent earns approximately an annual salary that ranges between $85,597 and $112,309.
These earnings can be earned by making at least a sale of a home in a month. The methods that real estate agent used in obtaining a high commission or high annual salary is already listed above
Frequently Asked Questions
- How much do real estate agents make in California?
The average agent closes 5 per year so that’s likely to equate to roughly $100,000 in Gross Commission Income. Net Commission Income is likely about 65% of that, so $65.000 before taxes and business expenses.
- How do I become a realtor online? Where should I start?
Google online real estate schools for your area, and align yourself with a company that has a good reputation. A good mentor will help you to succeed.
