How Much Can You Make As a Real Estate Agent?
Working a 9 to 5 isn’t getting you where you thought it would… now you’re considering a different path. What you’re looking for is a path that allows you to create your own brand with unlimited growth potential. You’ve noticed that there is a lot of money circulating in the real estate industry and you’re thinking to yourself, “How much could I make as a Real Estate Agent?”
Unfortunately, you are the only one who could possibly know how much you could make as an agent. This is because agents make most of their money from their personal network through referrals and returning business. You see… it’s a snowball effect. An agent with 100 contacts may get 5 sales from that group in a year. If those 5 clients were impressed by the agent then they may refer one of their friends. Those 5 sales could then turn into 5 more and the ball rolls on from there. This is why a career in real estate could take years to establish. If people trust you and are impressed with your knowledge of the industry, then chances are they will be satisfied with you and will sing your praises the next time they have a conversation about real estate. Your business is entirely up to you and the relationships you make. You must become the “go-to” person for someone who has a question about real estate in your area. There are thousands of agents in every city, so the local majority of those looking to buy or sell a home already know someone who is an agent. However, that does not mean that they will ever use that person for a transaction. With a huge investment, like real estate, it takes more than just having your license to get someone to trust you. That’s why the vast majority of agents do not make a living off of their real estate business alone. They may know hundreds of people, but those people don’t think about them when they think about real estate. Add a cheese ball sales attitude and you’re done. No one will use you as their agent and you’ll be forced into another industry.
That being said, there are a lot of factors that determine how much an agent can make. A good market, for instance, makes it a lot easier to make money. The average income of those in your network will determine the average sale price of the homes you sell (if most of your contacts make $60K a year, then you’re going to be selling agen bola terpercaya whatever they can afford and if they make $1million a year then… you get the point). If you are really knowledgeable and a hard-worker, then you’ll get repeat business. If you’re an extrovert, then you’ll make more contacts and thus, sell more real estate. Since this job is a commission-only job, your livelihood depends on factors like these and many more. There are agents that make less than $10K a year, agents that make over a million a year, and everything in between. It absolutely depends on the individual.
If you were hoping for a few concrete numbers to help you… here’s a few:
The standard commission on the sale of a house is: 6% of the sale price (which usually will be split equally between the Buyer’s Agent and the Listing Agent unless the listing agent also represents the buyer).
Brokerage commission splits range between: 50% and 80% of the commissions that you earn (meaning you take 50-80% of your commission home). There are exceptions to this rule, but there is usually a catch.
Typical closing length of a home purchase: takes about 30 days from the date the contract is executed (unless the buyer is paying cash). Obviously, you won’t collect your commission until after closing.
Remember, every single real estate agent determines their own destiny. If after reading this article you still want to pursue a career in real estate, then you may very well have what it takes to be successful because the first lesson you’ll learn in this business is how to deal with discouragement. Everything else is nothing but rewarding in every sense!