Passion for our jobs is one thing, but we still have to pay the bills. As much as real estate is a fantastic industry with incredible opportunities, potential agents have to make sure that their careers can support their families. That brings us straight to the point: How much does a real estate agent make? The answer isn’t simple, since the industry is commission-based. However, there are a few factors that can help determine how to earn a higher real estate salary.
Hours Worked by a Real Estate Agent
This might sound simple, but the hours that real estate agents contribute can greatly impact their salaries. First off, real estate is a grind; the ability to dedicate time and energy can really make an impact. A recent study showed that agents who put in an average of 40 hours per week banked about $56,000. However, agents who worked 41 to 59 hours per week earned nearly $100,000. For the true overachievers, agents who worked over 60 hours per week took in over $123,000 per year, on average.
Real Estate Specialties
There are particular specialties and niches that can earn you a higher salary. Thus, it can pay to know your sector. As an example, agents who specialize in affordable housing tend to earn less, as the commissions are smaller. However, relocation specialists and commercial agents haul in average salaries that are well above those of other sectors.
Senior Real Estate Agent Salary
In real estate, putting in more years tends to reap you more significant rewards. That is because real estate agents build up a reputation and a sizable clientele over time. A recent survey showed that agent salaries built up exponentially as their experience grew, starting at an average of about $20,000, for those with less than a year of experience. However, by the time ten years of work came around, that average jumped to over $60,000.
Prospective real estate agents should expect that there will be a lot of variables that will affect their potential earnings. However, with a smart plan, a successful real estate agent can make an excellent living.