Real estate agent salaries vary depending on a number of factors. Some real estate agents may only make a few thousand dollars per year, while others may make six-figure incomes. Let’s see what the average is and how to make the most of this career.
Real Estate Agent Salary in 2022 – Hourly and Annual Wages
The real estate industry is booming, and sales agents are in high demand. If you become one in 2022, you can expect to make around $43,700 per year – that’s the median across the United States calculated by Salary.com. This amounts to an hourly wage of around $21.
Looking through the U.S. Bureau of Labor Statistics for 2020, you’ll find that the real estate agent salary is about $62,990 per year on average. That’s a much higher number than the one mentioned earlier, because top earners are way above the median. What do the wages depend on?
Factors that Influence Realtor Salaries
Your salary will depend on several factors, the most important being your experience, location, and skills.
- Experience: The more experience you have as an agent, the higher your pay will be. This is because experienced agents are able to close more deals and get repeat business from clients.
- Location: Where you work also has a big impact on your pay. Agents in major metropolitan areas typically make more than those working in rural or suburban areas.
- Skills: The real estate market is constantly changing, so agents who are able to stay up-to-date with the latest trends and developments can command a higher salary.
Other factors that can influence real estate agent salaries include the type of company you work for, whether you’re a buyer’s agent or a seller’s agent, and the commission structure of your company. To make the most of your career opportunities, research the market in your location well.
Real Estate Agent Salary over the Years
The real estate agent salary has increased steadily over the years as the industry has grown. In 2002, agents earned an average of $42,470 per year. This number rose to $51,930 in 2012 and reached $62,990 in 2020. That’s a 21% increase in 8 years!
Real Estate Agent Salary by State
The average real estate agent salary also varies by state. In South Carolina, agents earn an average of $45,550 per year, while those in New York make $102,200 annually. Here’s a list of the 5 top paying states for this profession.
- New York – $102,200
- Massachusetts – $94,170
- Colorado – $81,210
- Connecticut – $78,540
- California – $76,750
What Do Real Estate Agents Do?
Real estate agents help their clients buy, sell, and rent properties. They work with buyers to find the right property and negotiate the purchase price. With sellers, they help set a competitive listing price, market the property, and facilitate the sale.
For renters, agents can help them find the right property and negotiate the lease terms. They also work with landlords to find tenants and manage the property.
In addition to these core responsibilities, they may also do some or all of the following:
- advise clients on home improvements that will increase their property value,
- help buyers get mortgages and homeowners insurance,
- act as a real estate consultant for clients who are not ready to buy or sell,
- manage real estate investment properties.
Why Do Real Estate Brokers Make More than Agents?
A real estate broker is a licensed professional who oversees the sale or rental of properties. They are responsible for ensuring that all transactions are in compliance with state and federal laws.
Brokers typically have more experience than estate agents and usually hold a bachelor’s degree in business or real estate. They must also pass an exam to earn their real estate broker license.
In addition to their salary, brokers often receive commissions from the sales or rentals they facilitate. Their mean annual salary in the U.S. was $81,630 in 2020. An agent can continue their education to enter brokerage.
Is a Real Estate Agent Career a Good Fit for You?
If you’re interested in a career in real estate, there are a few things you should consider. First, are you people-oriented and good at building relationships? Real estate is a people business, so being able to connect with others is essential.
You should also be patient, as the real estate sales process can take longer than expected. And lastly, are you comfortable working with numbers and doing research? Real estate is a data-driven industry, so having strong analytical skills is important.
If you can answer yes to these questions, then a career as a real estate agent may be the right fit for you.
What Qualifications Do Real Estate Agents Need?
In order to become a real estate agent, you must be at least 18 years old and have a high school diploma or equivalent. You also need to pass a real estate licensing exam.
Some states also require agents and brokers to complete continuing education courses to keep their license up-to-date.
It’s Hard to Predict a Real Estate Agent Salary
While salaries have increased steadily over the years, it’s hard to say exactly how much a real estate agent makes. The market is constantly changing, and agents’ incomes can vary depending on their location, experience, and specialization.
