Successful agents are motivated, independent, and they are competitive and thrive on winning business, they view themselves as lead generators first and as agents second. They enjoy solving problems, know how to multi-task and work well in a high-stress environment. They also run a “business” ! Are you ready to turn your passion for real estate into an income stream?
What makes Real Estate a good career?
You have the flexibility to make your own hours, can work from anywhere; your office, your home, your car. You recognize that you have 2 jobs, you are not just an agent, but first of all you are a lead generator. You are in total control of your success. There are no income limits in real estate. You own your own business and you are an independent contractor.
What do Real Estate agents have in common?
They have urgency and are pro-active, are problem solvers and enjoy networking with others. They are also learning-based and continually build new skills. With the rapid changes in technology, changes in contracts, and changes in market conditions, real estate agents are never done learning.
What does a day in life of a real estate agent look like?
Most importantly, you will need to time block to include your daily lead generation time. With many moving parts to a typical real estate transaction, no two days are the same. So, when you think about a typical day in the life, envision yourself managing your time to include going on appointments, doing research, showing homes, negotiating offers and managing multiple transactions as well as relationships.
What does a real estate agent make?
Real estate is a commission-only business. A real estate agent’s income is highly dependent on many different elements such as niche, years of experience, how many hours they work a week. Real estate agents get paid on performance. If you don’t perform, you don’t get paid. You can go months without getting a paycheck when you first start. You should have some cash reserves before you get started in real estate, but you can start getting paid pretty fast with some determination and hard work. You’ll need to learn how to budget for variable income. A VERY small number of agents are on a salary plus bonus structure, but those situations are rare and usually not financially favorable for the agents doing the work.
The answer to “how much does the average real estate agent make?” isn’t as simple as giving one dollar figure.
Unlike W-2 jobs, a commission-based jobs can have limitless income potential. Some agents make over a million dollars a year. You get back in income what you put into it in effort and time. So how much can you really make?
Income also varies by brokerage type. The majority of today’s brokerages operate under a commission-based system. Therefore your real estate agent income will be based on the commission split.
Commissions are typically paid by the property sellers and—by law—are negotiable. “Standard” real estate commissions typically range from 3 to 7 percent for residential sales, depending on the local area. That commission is split between the buyer’s agent and the seller’s agent. For this example, we’ll use 6%.
For instance, if you sell a home for $250,000, the 6 percent commission is $15,000. If another agent was involved in the transaction, you share the commission, and your portion becomes 3 percent, or $7,500. Now, you’ll need to share that with your broker. If you’re on a 70/30 split, that means you’ll take home $5,250. Just remember that, as an independent contractor, you’ll be responsible for your own taxes. This number is pre-tax and pre-expenses.
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