How Much Do Real Estate Agents Make?

 

When people think of becoming real estate agents, they often envision the glamorous lifestyle. They imagine bringing home big commission checks. They also imagine being able to work around their family and friends. However, as many new real estate agents find out, working in the industry can be difficult and not always lucrative. The first year is the hardest, and it can take a while to build up a reputation. However, those who stick with it typically see their earnings start to climb. In this article, we will discuss how much do real estate agents make and how that money is calculated.

How Do Real Estate Agents Make Their Money?

Real estate agents are paid through commissions that are based on a percentage of the sales price of a property. This commission is typically split between the listing agent and the buyer’s agent. The commission is usually negotiated before the sale is closed, and it can vary from brokerage to brokerage. Generally speaking, the standard real estate commission rate is 6% of the selling price of the property.

The agent’s sponsorship broker will often take a cut of the commission as well. The agent will then have to pay taxes on the commission they receive. Most brokerages do not take taxes out of the check for their agents, so they will need to file quarterly estimated taxes. Read more https://www.homesaleschicagoland.com/sell-my-house-fast-bellwood-illinois/

Some real estate agents will work for a brokerage that pays them a salary in addition to their commissions. For example, Redfin is a brokerage that pays its agents a base salary along with a bonus based on the number of home sales they close. This is a great option for new agents who are looking for a more stable career path.

There are also some agencies that only pay their agents a percentage of the commission, but they do not have a broker. These are typically called flat fee brokerages, and they are becoming increasingly popular with new agents. They can offer more stability than traditional brokerages, but they are not as lucrative as those that pay their agents a percentage of the commission.

Depending on the location and specific real estate market, real estate commission rates may vary. For example, real estate agents in high-demand markets often earn higher commissions than those in less-popular markets. In addition, there are some brokers that offer discounts on their commissions in order to attract new business.

The average salary for a real estate agent depends on a variety of factors, including the location and specialty of the business. However, a good rule of thumb is that real estate agents who specialize in residential property can expect to earn at least $70,000 per year on average.

If you’re interested in pursuing a career as a real estate agent, contact us for more information on getting your license in New York. We can help you get on your way to a rewarding career in real estate!

 

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