How much does a real estate agent make? A real estate agent in the United States earns an average of $ 48,930 a year according to the Bureau of Labour Statistics. But why choose this profession? Keep reading to learn more in detail!
Being a real estate agent in the United States is a very lucrative profession, as it has been recorded that the highest salaries for real estate agents have been higher than $ 111,800. On the other hand, in the country of Mexico, real estate agents regularly earn on commission.
They are usually in a range of MXN 15,800 to MXN 46,400 per month. In Mexico it is not necessarily essential to have a license to operate as a real estate agent.
What does a real estate agent do?
The Realtors are dedicated to organizing the sale or rental of immovable property, whether it is a home or office buildings for their owners. Sounds simple right? Well, the reality of what this involves is very different.
Let’s take a look at what a real estate agent’s to-do list involves:
- Complete, issue and file documents such as agreements and real estate records with the corresponding real estate agencies of the state.
- Planning and coordinating appointments with clients and other real estate agents.
- Carry out marketing strategies through promotional materials to attract new real estate clients.
- Responding to customer inquiries through calls or emails.
- Browse lists of customers who have bought, rented, or are waiting to be served.
- Stay up to date on trends in the real estate market.
How to be a real estate agent?
To work as a real estate agent, you do not need a university degree, you simply need to acquire a license to operate and it is not expensive.
However, it is advisable to follow the following steps:
1. Research state requirements
In the United States there is no real estate license that is valid at the national level, each state has its own rules and conditions to comply with.
That said, it is advisable to contact the real estate regulatory office of the state where you want to operate. Another option would be to inquire with the Association of Real Estate Licensing Law Officers.
The requirements of each state may vary for:
- Application processes and costs.
- Background history and fingerprinting.
- Continuous training.
- Education level.
- Tests and be eligible to take them.
- Training before and after obtaining the license.
- Notification of judicial history.
2. Take training before obtaining your license.
The next step is to acquire a real estate license from an accredited school, in order to be prepared for the next step that we will see below.
3. Take the real estate license exam.
Once you’ve taken a real estate licensing course, it’s time to take the exam. The price for the real estate licensing exam usually varies depending on the state where it will be taken. The highest cost can be up to $ 300.
The exam is usually divided into two sections:
The first section consists of the most common principles and practices in real estate, while the second part consists of the legislation that governs the state where you will operate as a real estate agent.
Once you have passed the exam, you need to submit an application by mail, including the required documentation and fee, to the real estate agency in your state.
Once the above is done, when your application has been approved, then you will receive an email from the state with the real estate license certification.
4. Choose a good real estate franchise.
If you want your name to have greater recognition or credibility from potential clients, joining a prestigious real estate franchise is your next step.
Regularly the franchises of greater prestige tend to require a greater investment. Although you can also be sure that you can receive more support and better opportunities to succeed in this business.
How much does a real estate agent earn on average in Pakistan?
One of the professions or activities that in the last 10 years has exploded in Pakistan is that of Real Estate Agent, due to many factors such as dollarization, sources of financing, in some countries a surreal political stability and at the time remittances, made the real estate sector have an unprecedented growth.
It made it attractive that many people are interested in venturing into this activity that for the vast majority of the population is synonymous with high profitability and sometimes easy work.
In practice, our profession is very necessary since many of the properties such as buildings, land, factories, vacation complexes, and houses could not be sold so quickly without the help or intermediation of a qualified real estate agent.
For this, people must constantly train and take courses in real estate associations, today there is a variety of training online, many of them free, there are also international real estate franchises that offer specialized study plans to train agents.
According to the latest report from the NAR and the Secretariat of Labour Statistics (BLS), an average real estate agent earns between $ 80,000 to $ 100,000, there are states where the average goes up and down.
In Pakistan the statistics are abysmally different, a real estate agent who is dedicated full time and has this activity as his source of livelihood earns an average of $ 30,000 but at this value, we must deduct the normal expenses of running the business which are approximately one 20 to 30%.
According to statistical data with cross-information from associations, real estate markets, real estate portals, and leading companies in the sector, more than 50% of real estate agents do so without having an experience or responsible knowledge that allows protecting both the interests of the buyer and the seller.
Many factors influence the low percentage of agents who earn relatively well and can live with dignity from the profession, the lack of constant training, MLS systems or real estate exchanges that work correctly, an ethical behaviour where service prevails the customer before the commission.
On the other hand, the agents who earn the most in this trade are those who manage to differentiate themselves from the competition, acquire and develop talents typical of the trade such as specializing in a branch, like working in Lahore smart city , selling commercial or luxury properties, these agents normally focus on specific market niches that the vast majority do not work for due to their lack of knowledge and experience.
Times are changing in all of Pakistan today customers are more demanding, technology has made many empirical brokers disappear, the dilemma will be in adapting to the future and the new demands of the trade and above all understanding the dynamics and language of the business.
It is expected that for the next few months the number of people who want to enter this profession will decrease, including many pseudo agents abandoned the trade as happened, this because in some countries the real estate cycle known as Contraction and Recession is being entered for these stages, only the agents who are properly trained will be able to support themselves.
A real estate agent can earn anything from nothing to millions of dollars annually. It all depends on how much effort you put into your business as an Agent or Broker.
There are Brokers that specialize in Distressed properties such as Tajarat properties the so-called REO Brokers. And this only works with Banks (their property suppliers) and Investors (buyers). Usually REO brokers earn double commission (buy and sell) And in times of economic crisis, these brokers can earn millions of dollars.
But when the economy improves, the flow of business slows down considerably. There are hard-working Brokers or Agents, who can earn a lot of money.
There are brokers like Fredrik Eklund de Gomez-Eklund that generate in commissions $ 20 million dollars or more annually (of course, from there they have to pay their agents their commissions, they must also take the cut to their parent company Douglas Elliman and pay taxes etc etc) But still they take home a lot of money.
Where brokers really make money is by investing themselves.
Since they are in the heart of the industry, they have access first than almost everyone to market opportunities thanks to access to the MLS connections with Banks, Private Lenders, Other Brokers etc.
On top of that they do not pay commission on their transactions because they represent themselves.
I will give you an example of how an REO Broker or a Real Estate Agent can make a lot of money.
Let’s imagine that X bank sends X REO Broker a tape with 1000 devalued houses (repossessed) AND the REO Broker has 90 days to liquidate all those Devalued properties.
But it turns out that once the Bank sends the Tape (the list), everything is automated. Therefore, if a house in El Tape is “shooting” it for $ 100,000, what the Broker does is not sell it. Since he knows that in the second month, the bank will automatically lower the price to $ 90,000. That second month the Broker does not sell it either and leaves it in their inventory.
The 3 month arrives, and the bank drops the price again to $ 80,000. Then there the broker himself buys the property or sells it to another broker for $$ 90,000 OR he sells it to a private investor for $ 100,000 and is looking for $ 30,000 quiet.
The Investor buys that property for $ 100K, invests say $ 50,000 in repairs and sells it for $ 200,000 or more.
I have a real estate broker friend who received an offer from another broker specialized in boat docks. It turns out that an elderly man, already ill, wanted to sell his “dock” (is it called in Spanish?) To go to his state to die with his family.
A berth of those costs about $ 100,000 or more. And this one had a motor license (that is, motorboats could be parked) And the old man was selling it all for $ 65,000.
My Broker friend, thanks to his colleague, bought that berth and sold the motor permit for $ 50,000 AND rented his berth for $ 800 per month. Basically, he recovered 77% of his investment AND he had a monthly flow that is equivalent to $ 9,600 per year (not bad for a net investment of only $ 15,000)
A Broker can rent x commercial or residential property for $ 1000 per month and sublet that property for $ 1500 and earn $ 500 per month. (BEWARE, the sublet is not legal in all states of the union).
In short, you can make a lot of money as an Agent / Investor, but you must work hard (especially at the beginning), you must be aggressive, create clients, relationships with other agents, with bankers, private lenders etc. This is a public relations niche.
If you are a passive person, who looks for excuses, who thinks about it a lot before doing something, then you will probably earn $$ 0.
Being a real estate agent can be synonymous with pursuing a profession that can earn you a lot of money, but preparation, being up to date in real estate, and having good marketing skills, as well as good interpersonal skills, will be crucial to being a successful agent.