$30,000 – $300,000 annually<\/strong>. However, they also stated that many factors influence these statistics.<\/p>\n\n\n\nBelow are some factors that affect the yearly income of realtors.<\/p>\n\n\n\n
1. Commission paid<\/h3>\n\n\n\n Realtors work with brokers or agencies that, in return for giving them clients to work with, get a commission off the deal. Depending on the agreement made, it is usually around a 60\/40 percent split.<\/p>\n\n\n\n
Let’s look at a practical example; let’s say an agent helps sell or buy a house for around $200,000. The average commission rate is about 6%, meaning the realtor gets about $12,000 from that deal.<\/p>\n\n\n\n
Now, remember that there are usually two realtors in the deal: the buying and selling ends. So, both sides get to split this commission 50\/50, leaving the realtor with $6,000.<\/p>\n\n\n\n
As mentioned earlier, the agency or broker the agent works with gets his share of the commission. If the realtor gives the broker a 40% share, he or she is left with $3,600.<\/p>\n\n\n\n
Now, let’s say the realtor sells or buys ten houses of the same price; his or her earnings for that year sum up to $36,000. In comparison, if the realtor sells or buys at a higher price, his or her earnings for the year would be higher.<\/p>\n\n\n\n
2. Area the realtor buys or sells houses<\/h3>\n\n\n\n It is no new thing that the prices of houses vary drastically from city to city. Now, let’s consider how the location can affect their yearly income.<\/p>\n\n\n\n
A realtor who deals with houses in major cities like Los Angeles will earn more per house. This is because homes there are sold or bought higher than in average typical towns with few homes.<\/p>\n\n\n\n
Although the downside of buying, selling, or renting houses in major cities is that it is generally more competitive, it also requires more time, hard work, and convincing from the realtor to close a deal.<\/p>\n\n\n\n
In turn, this affects the number of houses they help clients buy, sell, or rent in a year. However, they might still make as much as those who closed up to 10 deals.<\/p>\n\n\n\n
3. Hidden cost<\/h3>\n\n\n\n All realtors spend money on various things before closing any deal. It is quite true that brokers or agencies cover marketing and external cost. However, they don’t cover all.<\/p>\n\n\n\n
Realtors are expected to pay various fees and dues. Furthermore, they are responsible for their transportation while trying to help buy, sell, or rent a property. These expenses may, in turn, affect the final earnings of the realtor.<\/p>\n\n\n\n
Some even after incurring these expenses are unable to close the deal. The realtor ends up losing money rather than gaining from the deal.<\/p>\n\n\n\n
4. Level of experience or expertise<\/h3>\n\n\n\n Your experience level can greatly affect your yearly earnings as a realtor. Some realtors are major assets to agencies or brokers, earning higher than others.<\/p>\n\n\n\n
To further explain, due to their level of expertise, most of these realtors get better commissions than other realtors. Instead of the standard 60\/40, they get higher cuts. Sometime it could be 70\/30.<\/p>\n\n\n\n
The agencies benefit from this deal as they can close top-priority deals through the realtor’s experience. In return, the realtor gets a better cut.<\/p>\n\n\n\n
Is becoming a realtor right for you?<\/h2>\n\n\n\n As with any other career in sales, your success is determined by how much work you put into it. If you work adequately and effectively, a career as a realtor can be the best choice for you<\/strong>.<\/p>\n\n\n\nFAQs<\/h2>\n\n\n\nIs being a realtor hard?<\/h3>\n\n\n\n No, it isn’t<\/strong>. Being a realtor is very easy; this is why there are over 3 million licensed realtors in the US<\/a>. <\/p>\n\n\n\nHow long does it take to be a realtor?<\/h3>\n\n\n\n Being a realtor can take 1 – 6 months<\/strong>, depending on the process used. Online courses usually take long as you work at your own pace, while in-person courses are generally faster.<\/p>\n\n\n\nHow much can you acquire a realtor license?<\/h3>\n\n\n\n The course you must take to acquire this license usually costs around $800 – $1,000<\/strong>.<\/p>\n\n\n\nWhat is the estimated yearly earning of a first-year realtor?<\/h3>\n\n\n\n Basically around $40,000<\/strong>. However, it would be best if you remembered that other factors may affect these earnings. Ranging from the location of the properties and your commission rate as a realtor.<\/p>\n\n\n\nConclusion: Is being a realtor worth it?<\/h2>\n\n\n\n A career as a realtor can be quite challenging. This is because it is very competitive and requires hard work and commitment. However, it is a highly-valued profession, and it is worth it.<\/strong><\/p>\n\n\n\nIf you enjoy working with people and you are good at negotiating or convincing clients, then a career as a realtor is worth considering.<\/p>\n\n\n\n
I hope you enjoyed this article. Read more interesting content like this on LMS Hero<\/a>.<\/p>\n\n\n\nThanks for reading.<\/p>\n","protected":false},"excerpt":{"rendered":"
Every real estate agent dreams of selling more homes than ever before. But how many houses does a typical realtor … <\/p>\n
Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":10933,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1576,1],"tags":[],"yoast_head":"\nHow Many Houses Does A Realtor Sell Per Year? [Find Out Here] - LMS Hero<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n