Real estate agent is the term used to refer to an individual or organization that markets real properties to clients. The main goal of an agent is to assist people who want to sell their properties or real estate for the highest potential price.
An agent can also help buyers purchase properties for the lowest possible cost. To know how much do real estate agents make, let us look at their yearly income based on the length of time that they have been involved in this business.
Aside from this, it is also best to look at the annual salary that these individuals make based on employment type.
Length of Service
How much money do real estate agents make? Agents involved in the real estate industry who have been employed for less than a year make $32,500 a year and agents who have been employed for one to four years receive a median annual salary of $40,438.
Those who have been involved in the business for five to nine years receive an average pay of $60,000. Real estate agents who have been working for 10 to 19 years get an annual pay of $61,000 to 63,000.
Finally, those who have been working in the business for at least 20 years make $99,274.
Employment Type
The income of real estate agents also depends on employment type. Agents who were employed by firms usually make an average of $34,727 a year.
Self-employed agents have a median annual salary of $65,634. Employees who were recruited by public agencies, local governments as well and state governments receive approximately $41,700 a year.
Additional Information and Other Important Details
To enhance the income of real estate brokers, companies usually offer them commissions and incentives. Depending on the financial state of the companies that hire them, agents get a particular proportion from the amount of property that they sell.
Some companies give them a 5 percent commission while other companies offer a 10 percent commission.
Some of the basic duties of the agents include negotiating prices with sellers and buyers as well as assisting buyers regarding the important documents that they need to prepare to purchase a property.
Aside from these, the agents also provide detailed costing of the properties that they offer to potential clients. To become a real estate agent, it is important to complete a pre-licensure course.
In addition, it is also necessary to pass an examination administered by state governments to get a license to become a professional real estate broker.