How much does a Real Estate Agent earn?
All different kinds of people are entering the real estate world to become agents or a different important role needed for the industry. Some people enter the industry for the money they can earn, other people are drawn to the industry by the glamour and the lavish lifestyle involved with being a real estate agent. And some enter the industry for the pure excitement and challenging but rewarding qualities when selling a property or home. For most of those that do join the industry, a real estate career supports very easily the American dream of being free, and being ones own boss. Leaving the rush, rat races, to become a real estate agent is also a popular career change reason.
According to Salary.com, most real estate agents earn on average between $34,000 and $45,000 annually. How much agents make depends on the number of transactions they complete, the commission paid to the brokerage and their split with the sponsoring broker. Apart from buyer broker agreements, which allow for direct payment to a buyer’s broker, most real estate agents are paid through a listing agreement, which is signed by the seller and the listing agent. The agent signs on behalf of the brokerage.
The listing agent then shares part of that commission with the agent who represents the buyer. All real estate commissions are negotiable, and are paid directly to the broker, not the agent. Agents work for the broker. Typically, it is the seller who designates how much the buyer’s agents are paid.
Top producers earn a lot more than the average real estate agent. Each real estate office sets its own standards for top producers, but it’s probably safe to say that a top producer would need to sell at least one home a month to qualify. Mega-stars earn $200,000 per year and up.
Be sure to keep in the area you are good at selling. Such as if you are good with selling town houses, then try to corner the market with the town house sales. Be the very best at what you like to do, and the money will follow. People can genuinely tell when one is qualified to be handling their business or not, and an unsure unsteady newbie will not make many sales. On the other hand, even if you do not have any sales under your belt yet, but you like the niche in the industry you are working in, then that is the area you should stick to because there are going to be more sales in the future for you doing what you like to do the best.
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