Average Realtor In Virginia Income Level – How Much Does A Realtor Typically Make
No two real estate agents make the same amount. Well, their agency may be offering them something little each month but they make more from commissions.
Understanding How Real Estate Agents Get Paid
Once, a property deal goes through, they get a cut. Different companies offer different commissions to their agents. These commissions range from one percent to ten percent of the transacted amount.
We are going to determine how much an agent will make from this example scenario.
For simplicity’s sake, let’s assume that all real estate agents get a five percent commission. Let’s say we have a property valued at $250,000. An agent gets a client and makes a sale.
You may think that this agent pockets $12,500 right away. But this is not the case. In real estate, all commissions are paid directly to the real estate broker. They then split the profits made with the agent. Conventionally, a 50/50 commission split is applied.
However, this is just a rule of thumb and it’s not cast on stone. In this scenario, the agent will get fifty percent of the commission ($12,500) amounting to about $6,250.
According to reports, the average full-time real estate agent gets an annual income of $75,000. But this clearly makes a difference if you’re a CT Realtor starting a business compared to if you were a Vegas Realtor.
Well, this looks tempting but keep in mind that these are average salaries and they’re a few agents making much less than that.
It is worth noting that real estate agents never expect any fixed salaries. You’ll make varying amounts each month depending on these factors
1. Whether you work half-time or you’re a full-time real estate agent. obviously, full-time real estate agents make more.
2. Years of experienced. Real estate agents with years of experience generally command higher commission rates as they are better in closing deals
3. Place of operation. I’m pretty sure you know that location is the biggest cost defining factor in real estate. Real estate agents are paid depending on where they operate.