If you’re considering switching careers to real estate, you might be wondering, “how much does the average real estate agent make?” Planning ahead to know how much you can expect before starting a new career will help you understand how much to save and how to adjust your budget during the career transition period. We surveyed real estate agents across the country to learn what their annual earnings are, and what factors impact how much money they make.
Average real estate income depends on many factors
A real estate agent’s income is highly dependent on many different elements such as niche, years of experience, how many hours they work a week, and even their happiness. The answer to “how much does the average real estate agent make?” isn’t as simple as giving one dollar figure. To get an accurate number, you need to take into account where they fall on the spectrum for a variety of different metrics.
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1. Income increases with longer hours
How much does the average real estate agent make? One way to figure that out is to look at what agents who put in an average amount of hours are earning. In real estate, longer hours usually mean higher earnings. Agents putting in 40 to 50 hours a week can expect to make around $113,054, according to our survey, while agents who work between 50 to 59 hours a week report earning an average of $143,469.
2. Experienced agents earn top dollar
In real estate, having more experience typically means a real estate agent will earn more. A real estate agent in the middle of their career might earn somewhere around the $150,000 range. Again, this number is dependent on other factors which influence the average real estate agent’s earnings.
3. Niche can play a huge role in determining income
What an average real estate agent makes varies by niche. In general, average real estate incomes tend to fall in the high $150,000 range, while some niches, like property management or affordable housing, have notable lower incomes and others, like luxury homes or foreign investment, have markedly higher earnings.
How can a real estate agent rise above the average income?
Your earnings don’t have to be defined by what’s “average” for your niche, experience level or the amount of time you put into your job. There are always ways to beat the odds and rise above the median level of earnings. We’ve found that agents who are earning more typically excel at managing their marketing dollars, finding quality leads, winning real estate listings and staying updated on best practices. To help you earn more, we’ve put together a blog post that gets into each of those topics so you can maximize your potential.