Real estate agents are among the highest paid employees in the world. There might be a debate about whether they deserve such amounts, but no one can deny their job being among the most desired careers at present. Individuals having certain enthusiasm toward architectural beauty and in-depth knowledge about housing markets, can easily see themselves as potential real estate agents of the future.
- What does a real estate agent do?
- Types of agents
- Salary & job growth
- Common factors influencing salary
To help you guide through the doorways into this world, here are some basic information and advice regarding the real estate agent job. You can know all about their responsibilities, income possibilities and steps to becoming one right here.
What does a Real Estate Agent do?
Real estate agents are basically experts in buying and selling of home or properties. These properties could be just a plot of land or a luxury mansion!
They possess extensive knowledge of local laws concerning this kind of trades and has the responsibility to make the clients aware of those regulations. They keep a tab on the ongoing trends and market prices of such properties in their locality.
He is basically the middleman through whom the two parties at each end exchange their offerings. Clients benefit from them by finding the best-suited option at their desired price point and with their required characteristics.
Types of Real Estate Agents
There are mainly two types of real estate agents – listing agent and buyer’s agent. The listing agent deals with clients who are looking to sell their property, and the buyer’s agent helps the ones searching for their perfect new home. Sometimes, the buyer’s agent is also called the selling agent since he sold the house to the buyer. (Try not to get confused!)
Usually, a real estate company hires both of these types to assign individual projects or clients, so that both buying and selling sections are served efficiently.
Salary Range and Job Growth
Generally, a real estate agent earns ⅓rd of the commission going to his agency. According to the 2017 reports by the Bureau of Labor Statistics, real estate agents earn $56,730 per year on average. It can go as low as $24,160 and as high as $151,660 depending on your expertise, experience level and job location.
On a regular day, a real estate agent has to invest 12 hours of work. They often have to work on Sundays too. It is expected to grow at the rate of 6% by 2026, which is the average pace for jobs.
Common Factors Affecting Salary
Although your salary amount will swing between a specific range, knowing where you can get the better share of it helps a lot! Here are some factors which play active roles in shaping your final salary amount –
• Local economy
The local economy of your area can affect your salary amounts since you will need to work harder to close on deals where job growth is high. For the USA, Californian areas usually hold the most profitable local economy.
There are different commission rates and average sale prices in different locations. As a result, depending on where you belong, your salary will also fluctuate a lot.
• Own expenses
If you are an independent real estate agent, you will need to look after your own expenses like medical insurance, vehicle expenses, internet services, brokerage fees and many more. This expense typically measures within the range of $5000 to $7000 per year.
• Network strength
Since real estate is a relationship-oriented industry, the larger network you grow, the more strings you can pull and thus make the most profitable transactions.