How much real estate agents make
Not all real agents earn exact or fixed salary. They come into real estate as starters from various different educational background, experiences, and motivation.The main reason many people choose this job is because they like to be their own boss. There is often a widespread talk that real estate agents earn a lot.
But it should be known that during the first year, real estate agents make very less money. The reason is that they tend to learn the business during that phase and over the years they tend to get better by successful referrals from the clients. On average, most real estate between $34,000 and $45,000. How much the agents make depends on the transactions they make, commission paid or received, and split with the brokers.
So, in the beginning years, it is always less money at stake. In first year, the agents almost pay 50% of the commission to the broker. Most real estate agents also pay to the listing agreement signed between seller and listing agent. Commission plays a major role in real estate industry. All real estate commissions are negotiable. Agents work for the broker. The seller decides how much the buyer’s agents are to be paid. A listing commission can vary from 1% to 10%.
Many people believe that real estate agents earn a lot and they sell so many homes. But on contrary, most real estate agents sell only four to six homes per year. Agents who sell so many homes are called as top producer. Top producers are the role model people for other agents in the company and they earn quite a lot of money around $100,000 a year. There are some mega stars who earn $200,000 a year. The top and super star agents are people who are engaged in real estate business full time and always think of selling and buying and dealing with clients and making money. There are some agents who set up small teams like a mini agency and call for other agents to come and work for them and they share the commissions among them.The fees are paid to the real estate agents through the broker. The real estate agents can be either buyer’s agents or seller’s agents. It is important to keep in mind that the real estate agents are not allowed to receive commission directly from the consumer. All commissions are paid first to the listing agent’s broker and then listing agent’s broker pays buyer’s broker.