921,504
Anon, that a great question.
First we need to understand a few things. There are hundreds of thousands of real estate agent in every state. Some do a transaction every year, others do 10 a year, then there are those that do 50 a year, and some have a business model that is capable of doing thousands of transaction every years.
The level one real estate agent is doing few transaction and are actulally losing money through their efforts.
The level two real estate agent is the 'Survivor," they can pay their bills, maybe save a little but if they left the business tomorrow, no one would notice.
The level three real estate agent is the 'Player' the doer that influences others, guides maybe a team creator. When this agent leaves the business, they will be missed and their abscence noticed.
The level four real estate agent is the 'Innovator' the creative genius, the one who creates new businesss models, marketing efforts, creates solutions, spots money where others did not see it. Innovator such as these are the founders of Remax, Keller Williams, Realty Executives. When they leave the business, the business world changes.
Most agents are at level 1 or level 2. GCI does not exceed $100,000 and their real after tax income averages $30,000 to $45,000 annually.
At this time 93% of real estate transaction are completed by 7% of the agents.Clearly you can see their is lots of room for those who have vision and the willingness to fight, commit, and overcome their IDWDT snydrome.
What you make is directly related to the good seeds planted, proper nurture and timely harvest, not the hours spent. Fail in any part and you are destined to be a level 1 agent.
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Patty Blackwelder
Woodbridge, VA
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Matt Holder
San Francisco, CA
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Sharon Kowitz
Cary, NC
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Rob Renk
McKinney, TX
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Shannon Thomas
Avon, IN
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Debbie Gartner
White Plains, NY
279,878
2,436,099
I agree with other answers here -- it really depends on location in the country, type of agent, type of homes, # hours you spent working, etc. It's between $30K-40K nationally, but that I believe that includes agents that are producing and those that are not. In my market, about half the licensed agents had no closings last year.
5,104,931
I believe that national statistics show this number to be less than $40K per year.
443,220
I honestly don't see how you can get an average here, and I don't think that number would be terribly meaningful. Here in California we earn so much more than say in Arizona..
The best you can ask for is an average of what agents are making in a given city.
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Shanna Hall
Kirkwood, MO
6,393,609
Most people are living below their potential, and few of the full time agents actually work full time, and their earnings show this.
630,251
4,800,082
463,619
Looks like everyone has answered with similar numbers... I know when I was in real estate school over a decade ago they mentioned for my state the average was 8,000/year. Insanely low, but we have an overwhelming amount of people who only do one maybe two deals a year.
9,158
According to the national association of Realtors the average real estate agent sells 8 homes a year. I always say a good REALTOR sells 20-24 homes a year. An Excellent Realtor can sell 50+ years and then there are the extraordinary and Successful agents that run a Real Estate Business by having agents that specialize in certain areas and sell the team concept that sell over 100 homes per year. It's all possible with the right models and systems. According the recent statistics from NAR the average home sale was $208,000 and the average commission was 2.8% per side
634,482
I think if we include everyone licensed, even those that don't work much, the average is lower than $30,000/year.
2,820
This depends on the area as everyone said. I work in the San Francisco Bay Area and the areas I work in the average price is about $1,000,000. The average person would be making about $50,000 if they close 3 deals a year, but the standard of living is a lot higher here as well.
3,988,007
That is a loaded question. It all depends on the area and whether they are considered full time. If you lump everyone together across the country I would say for everyone that holds a license it would be under $25,000. The average in our area is probably a bit higher maybe $30,000.
152,799
A starting agent is usually only going to make around $30,000 a year, if that. I know that sounds terrifyingly low, but if budgeted appropriately, it'll grow quickly year-over-year.
111,251
i am in the San Francisco Bay Area Real Estate Market in California. Average Sale Price is $500,000.
You will not survive in $30,000 or $40,000 per year.
2,241,053
Your expenses ... real estate is business and how much do you hang onto. The profit is in the expenses and running a tight ship. I have seen $300,000 a year salaries and upside down on anything to show for it. And then the $6000 grammy who is super shape, clips coupons, has everything maintained around her and money in the bank too. In rural areas you don't need to make all our doors because your fun is out there in the wild blue yonder. And everything is no or low cost. Divide by three and four on cost of living in urban areas with higher insurance, real estate, wear and tear all the way around.
750,057
I usually clear about a Dollar Two Ninety Eight after expenses. The gross is impressive and the net not so much. Its an expensive business to be in and prohibitive for "hobby" agents.
1,712,676
First, a very large percentage of NAR members don't make any sales, they may be keeping their license active or work for the agent that gets the credit. A better question would be of all the selling REALTORS® how much do they net as versus GCE.
713,382
Great post and so true, an old saying is 5% do 95% of the work. I see this in my office and great potential for many new agents. However, there are those who come in thinking "this is easy, just put people in your car and collect a big check".... Well we all know that is not how it works :O)
3,340,443
What part of the country ? Is the agent a team member ? A buyer's agent ? How much experience/education do they have ? How hard are they willing to work ? Six figures in many places should not be difficult...which six is up to the agent.
4,319,419
I think NAR had mentioned that this average is under $40K or so - now that includes ALL real estate agents - part time or full time.
I am not sure if there is any stats available just for full time agents or part time agents.
3,986,258
That is a hard qurestion to answer. I f your market is $500,000 and more you will make lot more than a rural agent like myself that $150,000 makes us do cartwheels.
2,817,671
I've always heard around $30,000/year. Not sure if that is before or after tax, and not sure if that includes part time agents.