Since the real estate industry is thriving, the job opportunities in this field are expanding as well. Even though becoming a successful real estate agent is not easy, more and more people want to give it a try. With dedication as well as hard work real estate agents in San Pedro can make money in no time.
A lot of people these days want to know how much does a real estate agent make. Are you one of these persons? If yes, then this article is for you.
Real Estate Agents: How Much Money Do They Make?
In the actual fact, the vast majority of real estate agents are commission-based. It means, they earn most of their income when they are selling a property. In general, when someone sells a home with the aid of an agent, the seller will need to pay a five to six percent commission on the home’s sales price. After that, the commission will be divided between the buying agent and the selling agent.
On average, an agent will receive $7500 when selling a home worth $250,000. Nevertheless, keep in mind that the given value is just an estimate. Meaning to say, the real estate agent will either earn more or less.
Factors That Affect the Salary of Real Estate Agents
While the rate of commission tends to stay in the 3 to 6 percent range, the number of dollars of the commission greatly differ in the agent’s location as well as the average sales cost in the community.
- Amount of network
In case you didn’t know, real estate is a business that is relationship-based. Selling properties is directly connected to how well you make connections and network as well as your capacity to transform these connections to transactions.
If you’re just getting started, this could be very difficult. So, if possible, try to connect with at least five people every day. Then develop your circle of influence in order to maximize your possible earnings.
Since most real estate agents are contractors, usually, they are responsible for paying their omissionsand errors insurance, health insurance, advertising and marketing services, MLS fees, continuing education, internet services, vehicle expenses, as well as other expenses related to real estate.
Based on the information provided above, we can safely assume that real estate agents do not make the same amount of money. Sometimes, the money they make will depend on their abilities, time, and commitment.