Real estate agents in the United States usually make anywhere from $30,000 to $100,000 annually. Where an individual agent fits along this continuum varies according to many different factors. Let us take a look at some of the criteria that can determine how much income an agent can expect.
Hours Matter
Real estate is a grind. Most agents make most or all of their money on commissions, so the harder real estate professionals work, the more they get paid. In a survey by Real Estate Express, agents who reported working 20 hours or fewer per week made only about $31,000 per year, while those working 60+ hours brought in the average of $123,000. Taking into account only those agents who work at least 40 hours but not more than 60, the average response was just over $99,000.
Experience Matters
As with most careers, time spent in the career game correlates with increased income. A first-year agent may earn between $19,000 and $41,000, while a 25-year veteran may make well over $80,000.
Workplace and Location Matter
Agents who work at small regional brokerages have access to small sale pools and are, thus, on the lower end of the income spectrum. Agents who work for international brokerages have more opportunities and make closer to $90,000 on average.
Niche Matters
Commercial real estate agents tend to make a bit more money per year in comparison with residential agents. Similarly, property manager careers tend to offer less income than relocation careers. Thus, it is important to take careful note of average career earnings by niche (rather than merely considering average agent income across all niches).
Becoming a successful real estate agent is an uphill battle. Planning and lifelong learning are essential for increasing your income over time. If you want to leave yourself with more time to work and earn money, try using Propy’s transaction management platform for your next sale. It can bring you more efficiencies in the transaction process, leaving you with more time to spend building your career.
