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Oct 4, 2023 · Real estate agent average salary: $72,900. The states that pay real estate agents the most on average are geographically located in the Northeast, West, and South, with four states, four states...
- Andrew Depietro
Aug 12, 2024 · Find out how much a real estate agent makes in the US, based on 94.6k salaries reported. See the highest paying cities, job openings and compare salaries for different locations.
- A real estate agent can begin making money once they help their first client buy or sell a property.
- Top real estate agents might own a brokerage and have many real estate agents working under them. These top real estate agents can make millions of...
- Real estate agents make an average of $5,980 per month according to reported pay by Indeed users.
- Check the below indeed career pages for the detailed pay ranges for the similar professions to real estate agent here: Sales Representative Realtor...
- If you’re unsure about what salary is appropriate for a real estate agent, visit Indeed's Salary Calculator to get a free, personalized pay range b...
- Real estate agents earn a commission, a percentage of a sale, when they help someone buy or sell a property.
- No, it is rare for real estate agents to make a base salary. Most real estate agents earn commission on the property they sell.
- Many real estate agents receive a set salary with an additional commission. Some of them can remain steady and successful in their career by solely...
- On average, real estate agents make $84,459 per year according to salaries reported by Indeed users.
- Overview
- How much do real estate agents make?
- How do real estate agents earn money?
- Example real estate commission earnings
- How to earn more money as a real estate agent
At some point in their lives, most people will have enlisted the help of a real estate agent to buy or sell their home. Because of the many steps to complete a real estate transaction, licensed agents are valued members in the field. In this article, we discuss how much money real estate agents make and how they earn it, plus provide tips for pursu...
The average annual salary for a real estate agent in the United States is $94,031. Per month, they earn $6,658, on average. For the most up-to-date salary information from Indeed, click on the link provided.
Real estate agents receive income through commissions paid directly to brokers upon successful completion of home sales. The typical commission is 5% to 6% of the home's listing price, though this number can sometimes vary from 1% to 10% depending on the specific agreement.
Because the majority of real estate agents earn money after completing the sale of a home, their commission is dependent upon how many homes they sell. Most real estate agents receive payment through a listing agreement signed by the seller and listing agent.
A real estate agent’s success largely depends on their effort, but as small business owners, they also need to account for some variables when forecasting their potential income for the year:
Listing agents often work with a buyer's agent or an agent who helps the buyer find a home. This means that at the end of the transaction, the listing agent and buyer's agent split the total commission of the sale. When factoring in the brokers' fees, the total amount decreases. Here’s an example of how a $300,000 home sale with a 6% commission breaks down at closing:
Example:
A $300,000 home sold with a 6% commission rate amounts to $18,000. The listing broker and buyer's agent broker each took $9,000 (or half). The brokers then split the $9,000 with the agents at a 60/40 ratio. The listing agent and buyer's agent each took $5,400 ($9,000 x 0.6). Each broker keeps $3,600.
There are many scenarios where the final details of a transaction differ. For instance, there may be other parties involved in the sales process who take a cut of the profit or the listing agent may also act as the buyer's agent, which means they take home more profit.
Do short sales
Many homeowners have issues selling their homes because they receive offers that aren’t enough to pay off the bank loan. Listing agents can work with homeowners to negotiate with the bank to take a lesser amount. Once an amount becomes accepted, the agent will relist the property as a short sale. This can take weeks or months to get a decision from the bank as the agent works to complete the legal steps of a short sale process. Related: Listing Agent vs. Buying Agent: What's the Difference?
Work as a Broker Price Opinion (BPO) maker
Completing additional paperwork like the BPO report is another way for licensed agents to make money. This report, prepared by licensed appraisers to value homes, compares several home prices with relevant statistics and other information for sellers. Related: Average Real Estate Appraiser Salary at Each License Level
Become a property manager
Oftentimes landlords cannot stay on top of the administrative duties that come with owning a property and decide to hire property managers. Real estate agents can earn additional income by managing these properties for them. This can involve performing maintenance on buildings and collecting rent. Read more: Learn About Being a Property Manager
Aug 12, 2024 · Find out the average salary for a real estate agent in the United States based on 389 salary profiles. Compare pay by experience level, location, skill, employer and more.
Jan 11, 2024 · Find out how much real estate agents make in each state, based on data from various sources. Learn how salaries vary by market, competition, splits, and experience.
Find out how much real estate agents and brokers earn in the U.S. based on various sources and factors. Compare income by experience, brokerage role, location, niche and more.
The base salary for Real Estate Sales Agent ranges from $44,656 to $58,144 with the average base salary of $45,712. The total cash compensation, which includes base, and annual incentives, can vary anywhere from $50,103 to $63,294 with the average total cash compensation of $53,986.
