There are many careers, professions, and industries that a person can choose to go into, but some of them are more lucrative than others. Real estate is one of those occupations that first-year employees find themselves wondering what they got themselves into as the pay is not always great right off the bat. These individuals are struggling to learn the business and gain a foothold in the trade. If you are considering joining the ranks and want to know, how much do realtors make? Then, you have come to the right place. Read further to expand your knowledge about the topic.
Median Realtor Salary
How much do realtors make? This question is not as straightforward as it sounds as wages and pay rates vary from place to place. However, research by the Bureau of Labor Statistics shows that the national mean annual salary of 147,960 workers across the nation is $59,630. This breaks down to an hourly rate of $28.67. Of course, the amount fluctuates depending on a person’s experience and the market. For instance, those realtors that find themselves in the bottom 10% only make about $11.12 per hour. This translates to an annual wage of $23,130.
Meanwhile, folks in the 25th percentile get around $14.99 hourly, which equals up to $31,180 yearly. As you can see, having a go-get-em attitude along with a strong housing market can pay off in the long run as the wages continue to increase. For 50% of real estate agents, they average about $22.11 per hour, and their median salary each year is $45,990. But wait, there is still more for, how much do realtors make? Agents that get to the 75th percentile typically receive a $34.59 hourly wage. This rate leaves them sitting pretty at $71,950 annually. Finally, the last group included in the research is those people in the exclusive 90th percentile. These professionals make $52.64 per hour, which equals out to $109,490 each year.
How Much Do Realtors Make In Commission?
While the information provided above is broken down to an hourly rate form, it is important to remember that real estate agents don’t usually charge clients by the hour. Rather, they get paid at the end of sales transactions. Hence, you may spend days, weeks, or months working with a client without seeing a cent. However, a nice payday is often headed your way when the sale finalizes. The commission between clients and realtors are typically negotiable, but on average, it is about six percent of the property’s sale price.
Don’t fret if you still don’t know what that means as you are likely not the only one. It is going to be broken down here a little more to give everyone a better understanding of, how much do realtors make? If the closing price of a home, office, or another type of property is $500,000, the 6% commission on the sale would be $30,000. Even places that sell for a more modest sum can bring in a reasonable amount of pocket change. After all, not all structures are worth a cool half a million dollars. Still, if the estate sells for $200,000, your six percent commission will be $12,000, which is nothing to bat an eye at, but one must not forget about brokerage, insurance, and other fees.
If the realtor is also a broker, then, they can keep the profits after advertising, franchise fees, coverage costs, etc. However, these positions call for additional licensing and training, which leaves some folks out of the loop, at least for the time being. Instead, these individuals have to work with or for a brokerage firm. Hence, the commission must be split. Sometimes, the divide is even, but on other occasions, it is anything but broken down in equal parts. These contracts can be better for the listing agents at times. For example, with a 6% commission, the listing agent may receive 4-percent of the proceeds while the purchaser’s agent only gets a whopping 2%. By the time everything is said and done, you may be looking at a payday of merely $2,000 instead of the $12,000. So, how much do realtors make? The number depends on a lot of different variables.
Ways To Increase Income
How much do realtors make when they hold one or more degrees? Many agents have higher educations in marketing, sales, or business. Research shows that that individual’s with Bachelor’s degrees earn approximately 5% more than those without them. Additionally, diploma holders also hit the $100K mark more than folks missing the certification. People with Graduate degrees usually make the most of all at about 20-percent higher. So, how much do realtors make? The answer to the question often revolves around education. To maximize earning potential, study and earn your degree now to reap the rewards later.
How much do realtors make when they increase their earning sources? Experience is one key factor that puts money in the bank. However, it takes time to acquire such wisdom. Unfortunately, time is not a luxury that everyone has when they are first starting out in the real estate game. After all, they have families at home and mouths to feed. A great way to gain expertise and put a few bucks in your pocket is by finding additional revenue sources. Some extra ways to make money while furthering your knowledge in real estate include…
- Market Evaluations
- Property Inspections
- Writing Contracts
Don’t expect to get rich from these side jobs, but they can put you on the right track to maximizing your earning potential. How much do realtors make? The number is strictly up to the individual. If a person puts forth the time and effort to be successful in the industry, the earnings are likely to surpass their expectations. However, halfheartedly attempting the endeavor may leave you scraping the bottom of the barrel searching for scraps. So, give yourself the chance to succeed instead of experiencing failure and defeat.