How Much Do Real Estate Agents Make?

I will be doing the NSW Real estate licensing course soon through the Real Estate Association.
I will try to help you all with lowest prices so u can do more investing.

 

The lowest house prices you mean? Do you know you'll be breaking the law by not serving the best interests of your client?

 

I've been in the building industry in Melbourne for many years now and similarly to realestate agents, it really is variable as to what you can earn.

Like all commission sales roles, those that are good at it get paid accordingly, those that aren't....usually move to the next builder or get out of the industry completely.

 

It's a bit more than a days training but that's not what they're paid for. Their paid to get listings and make sales. Those that do this exceptionally make big bucks, others make less. Same as any other sales job.

 

As others have said it certainly varies and is dependent on a whole host of factors, those predominantly being: level of skill/experience, local competition, pricepoint of area, commission/pay structures, networking/contact pull and ability to put in the hours.

A lot of new entries to the sales industry believe working as a REA is all about selling and showing buyers through homes... but it's actually more about networking and getting listings. Actually selling the property in many cases is the end result.

 

I imagine it would be a fun job during a boom. Would it be a good idea to train up and then apply as the market picks up? And then leave when it all dries up? Would be 18 months to 2 years of sales with an end date in sight.

 

Who cares, we are far more important

 

Of course we are

 

Ask the question: is 18 months sufficient time to establish networks, build trust, gain a reputation etc?

 

The 80% - 20% rule rings very true in this industry. Been in it around 15 years. Harder business than most people think it is. Being a RE Agent is like opening up your own business. Most people think the agency is like a supermarket and you can just sell the stock that the agency has - whilst some of this is true, you start in RE and you have to build the business for yourself - get your own "listings" (properties to sell) and then the whole process begins from there. If you don't sell the properties, ahh...you don't get paid. We work for free until we get a result for the client that they are happy with. No result, no commission. Vendor wants too much money for their property, and won't meet today's price, guess what you've just wasted 6 months of having a product which now is unlikely to sell - all that time and effort for nothing. You think the vendor or someone else would work for nothing for 6 months. Yes, the flipside is also true, I sold a property within a few hours or a few weeks and got paid full comm. The agency takes around 50-60% and you get the rest IF you're both the listing and selling agent, less tax. Gotta sell a lotta houses to make $100k + per year. Some agents I know are pulling $400 - $600k per year, but others would be lucky to be doing $30k. Agents are sometimes noctural - we work when everyone else doesn't - ie: work weekends, work till 10pm at night to get a deal done, see clients at 6-7pm. Still love it though!

 

Absolutely. Plenty have.

 

Sometimes, if you're massively motivated and proactive, but in general, I'd say 3-4 years.

 

There's probably an element of short term peaks to incomes in the industry at the moment. Its a booming industry right now where conditions to do well are at their very peak (in Sydney). Over the course of a decade, i think it'd average out to normal levels.

 

If you know a lot of people and they know you as a RE Agent and you give them what they're looking for: Sales results in their area, experience, knowledge, guidance, etc, then you'll do quite well $$$ wise

 

In boom periods, average agents can become like "order takers" as property turns over quite quickly due to typical supply and demand

 

So are the businesses happy to keep agents on when the booms have bust? Are they happy to take agents on knowing they might only stay 3 or 4 years?

 

that clearly doesn't apply in queensland

 

so what are the ones doing that are earning 500 k per year? are they just amazingly good at selling anything that comes into their hands? why are they selling the more expensive properties I would imagine the latter would have a lot to do with it even if you're very quick this still only so many properties you can sell in a time period

 

People, you can be a licenced real estate agent and never sell residential property. Many of us specialise in other fields and make a good living.

 

I think it's like any business - it doesn't matter when the economy is doing great or crap, you weather the ups and downs and get through it. Some agencies expect you to have "deliver on continual sales" month-in-month-out, others have agents who plod along making $40k - $50k per year who have been making that for 10 years with the same agency and are happy to retain those "average-performing" agents.

What I have found over the past 15 years is that when the boom comes, you get like 30% more agents coming into the business, and when the bust comes, usually you have 30% or more exit the RE business because they simply can't cut it.