To become real estate agent and earn a hefty six figure income per year seems impossible for some and time-consuming for others. The American Dream: To be rich, have nice things and live a blissful life with fame, fortune and happiness being at your doorstep. But that’s all just a baseless notion. The reality is somewhere in between.
How much do real estate agents make?
A lot of people think it’s great! Sure they work long hours and time with their families is often cut short. But this is rewarded by the commission checks they receive each month. Who doesn’t want to make a lot of money for a little work? With the median annual salary for a real estate agent about $50,000, people figure they’ll get rich pretty quick.
The truth is that the average real estate agent makes around $37,000 per year. And this figure is more than $5,000 less than the median annual salary for all U.S. financial services specialists. You might even consider that other industries besides real estate make more money.
That’s not so bad, you might say, as you see another rich real estate agent driving past. The thing is that money goes a lot faster than you think when it’s made a few hundred bucks at a time. Average brokerage commissions are about 7%, which means that’s the equivalent of billing your clients $70 an hour.
$77 per hour to be exact. Of course, real estate agents don’t bill their clients that way. But they still have to work for 16 or 18 hours to make $37,000.
Another potential wrench to become real estate agent gears is the size of their slice of the pie. In the US, the share of commission that goes to agents is 16%, while in Canada it’s 14%. (Some might say those real estate agents in Canada are getting a “deal” with a lower tip to the bartender.)
So before you decide to be a real estate agent, it’s best to know what the reality of the profession is. It’s a great way to make a living if you have the motivation. But you would have to ask your self if it’s worth the time you won’t be able to spend with your family.
real estate agents make around $37,000 per year. and this figure is more than $5,000 less than the median annual salary for all U.S. financial services specialists.
How to become real estate agent
Becoming a real estate agent is like any other occupation and going through the steps and stages of becoming one will be the same as with any other trade. The most important thing to do is to do your research, be committed and stay focused.
There are many steps involved in the process of becoming a real estate agent:
Step One: Determine what type of agent you want to become: a residential agent, expert negotiator, investment agent, relocation agent, or commercial broker
Step Two: Prepare for the Exam: Many prospective agents go and take a course which prepares them for the exam, but you can also just prepare on your own.
Step Three: Take the Exam:
Step Four: Apply to be licensed:
A successful career in real estate provides endless paths for potential and diversity to expand the horizon of any individual. The thought of this enlightening industry can leave a spectacular experience and an innate sense of self-worth through the reward of your own time and capabilities.
What are some things to keep in mind if you want to become real estate agent?
People interested in finding out more about working as a real estate agent may have many questions. Here are some of the most common that come to mind.
1) What are the qualifications to be a real estate agent?
–Pass the state exam
2) What if I want to work independently?
–Meeting the qualifications in #1
3) What are some things I can do to prepare myself for working in the industry?
–Have conversations with real estate agents to hear about their day-to-day
4) What is the typical time commitment?
–A total of 80 hours at a minimum per month
5) What is the salary of real estate agents for those with licensing with the state?
–Higher in the ballpark of $100,000
6) How do the newer agents compete with the experienced?
–Find those niche areas and make it a point to learn
7) Are there any specialties a real estate agent can pursue to increase their salary?
–Offer trade services: construction/renovations, appraisals