This is the most frequently asked question in the real estate community. However, there is not any exact figure as to how much do real estate agents make. Different factors, such as, experience, commission rates in the area, and houses they sell will determine the income of different agents.
How Much Do Real Estate Agents Make Per House?
How much an agent makes from a house sale depends on the commission he receives from it.
The commission is the amount of the fee a real estate agent charges for selling a house. It is different in different states. However, the national average lies between 4.2% to 6% based on the data collected from different states. And this is the biggest reason why real estate agents’ income varies from state to state.
For example, an agent working in Georgia usually receive the commission rates of around 5%-6%. So if he sells a property for $400,000.00, the commission he gets will be $24,000.00 with 6% of the actual price.
However, not all the commission goes to an agent’s pocket. There are few factors that determine how much he will receive from it.
- If he is a new agent and works for a broker, usually they split it 50-50.
- If he is an experienced one but still works for a broker, there are chances that he will get a bigger share like 70-30 in favor of him.
How Much Do Real Estate Agents Make Per Hour:
Most agents do not work on an hourly basis, but some do.There are different factors that determine how much do real estate agents make per hour. These include:
- Profit sharing
However, the national average of hourly income of the agents falls between $10 to $30.
How Much Do Real Estate Agents Make Per Year
The median income of a real estate agent was recorded to be $46,000.00 as par 28 October 2016, with averages ranging for new agents at $25K to $106K for experienced agents. The reason why there is such a big difference between lowest and highest earners is experience. New agents usually struggle and take a lot of time to establish themselves as REALTORS.
On the other hand, experienced agents have access to all kinds of properties and clients usually feel safe while making their property transactions through them. Hence the high incomes.
However, it is important to know that not all the real estate agents deal with the same kind of properties.
There are commercial properties, and there are residential properties. How much do real estate agents make depend on the type of property they deal with.
The agents making deals of commercial properties such as offices, shopping plazas, and malls are called commercial agents.
While the agents taking care of residential properties such as homes, flats, apartments etc are called the residential agents.
Both these agents earn different amount in terms of annual income. In fact, commercial agents earn more than residential agents since the properties are usually large and located in the commercial areas of the city.
However, there is a salary breakdown given for both the agents in the next part of the article.
How Much Do Residential Real Estate Agents Earn?
Experience is the key to earn big in real estate. The more you have it, the more you earn from it.
In case you are wondering how much do real estate agents make in residential category, their salary breakdown is given down below.
- Entry Level
First 5 years are usually classified as the beginner or entry phase for the real estate agents. The average income of a beginner agent lies between $25K-$45K based on the experience.
- Mid Career
The 5-10 year phase is known as the mid career phase. During this time, the income slightly rises, ranging from $45K-$59K.
The next 10-20 years are the experienced phase. The average income of agents with this experience is around $62K.
- Late Career
The phase after 20 years is the late career, and according to the data taken from 28 agents with over 20 years’ experience. Their average income was $75K.
After residential agents, it is important that you know about how much do real estate agents make in the commercial category. And the next part will cover the salary breakdown of commercial real estate agents as well.
How Much Do Commercial Real Estate agents Earn?
As I mentioned earlier, commercial agents earn more than their residential counterparts. Their average salaries lie between $36K and $176K with the median salary of $63K per year.
Just like residential agents, their career can also be divided into phases – entry lever, mid-career, experienced and late career. Their salary breakdown is given below:
- $63K for 0 to 5 years
- $105K for 5 to 10 years
- 120K for 10-20 years
These stats are taken from payscale.com. Any errors and omissions are accepted.
Real Estate Advice for Those Living in Georgia
If you are a resident of Georgia and looking for a firm/institute that provides real estate agents’ training, you are invited to visit our firm Sellect Realty. Our firm was formed 10 years ago and during that short period of time, it has become one of the biggest firms in Marietta Georgia. We have over 150 agents operating all across the state and we provide training to new agents as well.
Our primary goal is to make it easier for you to start as a real estate agent and for this we have established a training program. Our training program includes:
One On One Coaching:
Our highly qualified coaches will have one on one sessions with you, helping you make a clear plan about your real estate career and providing you the complete assistance to achieve your goals.
Sellect Realty also provides Optional Mentorship program. It will help you get the initial experience of the real estate and help you gain the confidence. However, this is an optional program and it is totally up to you if you want to take it or not.
These and many more training courses are offered by Sellect Realty. If you have any questions or queries regarding how much do real estate agents make or regarding our training courses, feel free to contact us (770-509-0265) or visit our office at:
2625 Sandy Plains Road
Marietta, GA 30066