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How much can a real estate agent earn in the United States?

Globalwide School can help you answer the question of how much a real estate agent can earn in the United States and learn about the areas you should focus on to become a well-paid real estate agent.

The job of a real estate agent is based on being the intermediary between the seller and the buyer or the landlord and the tenant.

In this profession, activities are focused on the sale, purchase, lease, and management of real estate properties. Therefore, it requires experience to handle the parties involved in the purchase or lease.

The salary for a real estate agent can vary depending on several determining factors such as the state where they work, experience, commissions, among others.

What the Surveys Say

It is clear that salaries in the United States vary and depend largely on the state where they are employed, but there are average values to estimate salaries for each profession.

Based on 60,000 salaries reported up to July 2022 in a survey reported by Indeed, the average salary for a real estate agent in the United States ranges from $95,081 to $112,471 per year, with an average monthly income of $7,369.

Additionally, it was reported that income is directly related to the commissions paid to the real estate agent at the end of the purchase, which can range from 1% to 10%, with an average of around 5% to 6%.

This commission percentage is agreed upon with the selling or leasing party prior to the execution of the deal and is based on the property's price.

Factors That Influence a Real Estate Agent's Salary

As mentioned at the beginning, the earnings of a real estate agent in the United States can vary due to multiple factors. We'll discuss the main ones on our blog.

Experience: Having more years of experience and a track record of successful sales allows one to earn more than a beginner.

More years of experience mean more contacts, a broader business network, and a stronger client portfolio.

Location: Depending on the state where you work, you can earn more or less money.

Generally, in large metropolitan cities or higher-cost areas, higher salaries can be achieved. For example, the average salary of a real estate agent in New York is around $60,000, while in California, it can be $73,000.

However, in Florida, the average salary for a real estate sales agent is approximately $44,000, which is quite profitable and has high potential depending on the sector's dynamics.

Commission: Commissions are the primary source of income for a real estate agent.

This is the agreed-upon fee with the company where they work or directly with the sellers, which must be paid for completing and closing the sale.

This fee is typically around 5% of the property's selling price, but it can be negotiated to be higher depending on the property's value or the benefits offered.

It should also be noted that in some cases, this commission is divided between the buyer's and seller's real estate agents, so the final profit percentage may be different and lower.

What to Do to Increase Salary?

In addition to these factors, there are others that also determine how much a real estate agent can earn in the United States but have a proportional impact on income.

This means that the more you achieve or boost these factors, the higher your salary tends to increase.

Sales Volume: The more properties a real estate agent can sell, the higher their income potential. Similarly, if the houses are more expensive, the salary will increase. This aspect also influences commissions since they are usually paid in full if the sale is successfully completed, i.e., at the closing of the sale.

Network and Marketing: Being a real estate agent with a broad and sustained network of contacts and previous clients will make it easier to create new business relationships and meet more people, leading to recommendations from them.

Additionally, contacts can come from complementary professions that enhance the purchasing process, so having them will be very useful for safer, faster, and more reliable sales.

Maintaining and expanding your network of contacts will open up new business opportunities, as well as employing different marketing strategies to increase clients, which will result in more sales and higher income for the real estate agent.

Real Estate License: Last but not least, obtaining a license in the state where you wish to work is indispensable to become a real estate agent in the United States.

To obtain it, you need to meet the requirements, complete training courses, and pass the exam.

Find in our portfolio of services at Globalwide School all the tools and modalities to meet these requirements and obtain the real estate license you've dreamed of.

Contact us; we'll be ready to assist you.

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