How Much Do Real Estate Agents Make
Do you want to pursue a career in real estate? Succeeding in the real estate market takes time, hard work and dedication. The population is increasing by the day and this means that the demands for housing and accommodation are also going up.
There are people who want to buy houses, rent out properties or invest in real estate. This is where a real estate agent comes in; to bridge the gap between the client and the property developer. Their main responsibility is to buy, sell or rent a property on behalf of their clients.
The big question that comes to mind when you think about pursuing a career is; how much money will I get? How much on average is the salary of a real estate agent?
To answer this question, you first need to understand how real estate agent’s salary is determined. A career in the real estate industry is like running a business. Building a business takes time and, in the beginning, you will need to work very hard and get out of your comfort zone in order to get clients. Remember most brokerages in America will not pay you a basic salary. Instead, they will give you commissions that are a direct reflection of your performance. Thus, the more effort you put into your career, the more you will earn.
As a real estate agent, your commission will be a share of the seller’s profit. Ideally, the real estate commission is 6%. This means that if a home is selling at $500,000, the agents will net $30,000. This commission is then shared evenly between the agents of the buyer and seller. In America, real estate agent earnings vary from state to state. The average earnings for an agent in Alabama are $ 55,960 per year while that of an agent in Maine is $60, 220.
What Influences Real Estate Agents Earnings?
One great thing about being a real estate agent is that you have a lot of control over how much money you can make. Here are a few factors that will influence the amount of money you will get paid.
#1. Time and Commitment
The time and commitment you are willing to put into your career will greatly influence the income you will bring home each year. This is because the more time you invest in developing your skills, the better you will become and as your network grows, your chances of landing a job in a company that offers handsome compensations increases.
#2. Market Conditions
Market conditions will also affect your take-home pay. For example, if the economy slows down unexpectedly, many buyers can decide to postpone their plans until a later date. As an agent, you might be forced to deal with a lot of cancellations or short sales and this can reduce your income.
In the real estate industry, earnings are directly correlated to performance. As your experience in the industry grows, so does your earnings. However, many years alone will not make you a rich real estate agent, you have to learn better strategies and embrace technology in order to be the best in your niche.