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Updated over 9 years ago, 03/26/2015
Real Estate Agent Median Income is it False?
Hello fellow BP members!
I am a young aspiring agent/investor and want to get started in the business first as an agent. I was concerned at first reading that the median income for a real estate agent was roughly 39k a year. However I recently read an article stating that you can't really take that number seriously due to many part time agents bringing that number down as well as agents who really don't work that hard. Is this true? Have you seen this first hand? Is being an agent a lucrative career if you work your butt off and know that it will be most likely be a slow start?
Thank you in advance for your input!
Originally posted by @Sandy Thomas:
The good news is that successful Realtors come in all colors, sizes and personality types. The bad news is that it is difficult to predict which will be 'successful' and which won't make it to their 2nd anniversary in the business.
Here is the best advice that I can give you: get up, get dressed, go to work.
In other words, treat it like a REAL JOB. Set your alarm, beat your manager in to the office in the morning, dress sharp, listen intently to the experienced agents. If you do these things, you will be ahead of 90% of the other agents out there and those experienced agents/managers will send business your way to encourage you (I know that I always send a hard working rookie business whenever I can because I want to see them succeed).
Plan to have little to no income for 6 months, maybe more. Don't spend a lot on advertising initially but instead tell everyone you know and meet that you are actively building your business and ask them 'who do you know that is getting ready to buy or sell a home?'.
Pick up the phone and start making phone calls. Friends, family, classmates, former co-workers. Expired listings, for sale by owners, absentee owners, cold call a neighborhood.
Best of luck to you, Johnny! It is a career that rewards those who work their tail off. : )
Wow great advice thank you very much for the coles notes for success as an agent!
Originally posted by @John White:
You've already received some really great advice. I've been a Managing Broker for two national companies. I've had the opportunity to manage hundreds of agents, with very different personalities. The best advice that I can give you is this...don't start out with bad habits. The real estate industry is replete with agents who NEVER answer their phones, don't respond to emails, and don't respond to voicemail messages. In my opinion, being responsive is the most important thing you can do. The good news is that it's fairly easy to do, if you're committed to it.
The other thing I would say to you is don't fall into the trap of believing that your picture is your brand. It's NOT, regardless of how many agents believe that. Your service is your brand, and that will follow you, throughout your career. Real Estate (at least on the agent side) is a bit of a goofy business. I can't think of another industry on the planet who would ever even dream up the idea of plastering their pictures all over their business cards...and anything else they can find as landing spot. Remember...if you're working as a sales person (or a Broker), it's not all about you. It's about your client. Represent them vigorously, respond to them promptly, and always put their needs ahead of your own. I wish you well on your journey.
This is all great advice. I don't think the responsiveness can be over-emphasized. One thing that can help is focus on those who you can serve the best. You may not want to work with all your potential clients, but you should at least pass them off to someone who can.
One thing that can get you out of the trap of driving around tire-kicker home buyers is to have them pre-qualify. If they ultimately end up going with another agent to purchase the referral to the lender will help build that relationship.
Your "brand" should be not about you, but about your service to your customers. Make it easy to find your listings on your web-page. That way those who list with you will get the benefits of your brand.
If I were starting all over again as a fresh new Realtor I would seriously consider joining a significant producing team as an assistant/ buyer's agent kind of a role. Two primary benefits are learning a massive amount of how the business actually works and people part of the business (the most difficult generally) and secondly you will be earning some money as you go along. A small part of many transactions. Instead of a large part of only a few transactions (in first year or so). Only can learn so much by books, real estate courses, training seminars, etc
And a personal business coach I once had always emphasized outflow will ultimately lead to inflow. Focus on outflow of money, time, effort, contacts, etc. eventually experience and money will inflow back to you.
The business is a roller coaster for sure. Lots of ups and downs, zigs and zags. Hold on tight for quite a rush!
Originally posted by @John White:
You've already received some really great advice. I've been a Managing Broker for two national companies. I've had the opportunity to manage hundreds of agents, with very different personalities. The best advice that I can give you is this...don't start out with bad habits. The real estate industry is replete with agents who NEVER answer their phones, don't respond to emails, and don't respond to voicemail messages. In my opinion, being responsive is the most important thing you can do. The good news is that it's fairly easy to do, if you're committed to it.
The other thing I would say to you is don't fall into the trap of believing that your picture is your brand. It's NOT, regardless of how many agents believe that. Your service is your brand, and that will follow you, throughout your career. Real Estate (at least on the agent side) is a bit of a goofy business. I can't think of another industry on the planet who would ever even dream up the idea of plastering their pictures all over their business cards...and anything else they can find as landing spot. Remember...if you're working as a sales person (or a Broker), it's not all about you. It's about your client. Represent them vigorously, respond to them promptly, and always put their needs ahead of your own. I wish you well on your journey.
Love it! So kick bad habits to the curb and simply keep great communication with anyone trying to contact you! Thank you so much! Enjoy the customer service part of your comment, have to make my business about the client and the growth will come with it. I greatly appreciate the advice!
Originally posted by @James Park:
@johnny lujan,
You must differentiate yourself and your knowledge is key. You will also attract clients who similar or like minded as you. Looking at my client base today, many of my clients are entrepreneurs who have interests in real estate investing, economics, and financial markets which are also my interests and passions. It is not uncommon for my clients to call me to get financial advice or to get my short term and long term views of the macro economic trends in additon to the real estate services i provide for them.
You will also notice that most real estate agents are not investors themselves. If i am selling My own sunglass brand, i better wear my own brand and believe that my sunglasses are better than maui jims and oakleys. I am a firm believer that you must own and believe in what you sell. Why would you want buy real estate investments from a commercial broker who he himself does not invest in the products that he sells?
To become a top producer you cannot try it out and be half hearted to the trade, you must be all in and committed to make this your life time trade and strive to become the best. Have a goal and Determination that you one day you will become among the best top 5% of agents and brokers.
When i used to run my small .net software business for 7 years before going into real estate full time, i would make a good income but was unfilled and always looked forward to the weekend. Today i can't wait to wake up the next morning so i can goto work.
James
Ahhh have to make myself different to stand out. Great point on investing in your own products and that's exactly what I plan to do! Whole hearted approach, got it! I can't wait for that same feeling of waking up Monday morning ready to tackle the week with a positive outlook! Encouraging to hear. Thank you!
Originally posted by @Jesse T.:
Originally posted by @John White:
You've already received some really great advice. I've been a Managing Broker for two national companies. I've had the opportunity to manage hundreds of agents, with very different personalities. The best advice that I can give you is this...don't start out with bad habits. The real estate industry is replete with agents who NEVER answer their phones, don't respond to emails, and don't respond to voicemail messages. In my opinion, being responsive is the most important thing you can do. The good news is that it's fairly easy to do, if you're committed to it.
The other thing I would say to you is don't fall into the trap of believing that your picture is your brand. It's NOT, regardless of how many agents believe that. Your service is your brand, and that will follow you, throughout your career. Real Estate (at least on the agent side) is a bit of a goofy business. I can't think of another industry on the planet who would ever even dream up the idea of plastering their pictures all over their business cards...and anything else they can find as landing spot. Remember...if you're working as a sales person (or a Broker), it's not all about you. It's about your client. Represent them vigorously, respond to them promptly, and always put their needs ahead of your own. I wish you well on your journey.
This is all great advice. I don't think the responsiveness can be over-emphasized. One thing that can help is focus on those who you can serve the best. You may not want to work with all your potential clients, but you should at least pass them off to someone who can.
One thing that can get you out of the trap of driving around tire-kicker home buyers is to have them pre-qualify. If they ultimately end up going with another agent to purchase the referral to the lender will help build that relationship.
Your "brand" should be not about you, but about your service to your customers. Make it easy to find your listings on your web-page. That way those who list with you will get the benefits of your brand.
I agree the quick response could seal the deal! I like the pre qualify note, so you can somewhat weed out the tire-kickers. I keep getting that advice about its about the service to the customer and I love it, thank you for that! Thank you!
Originally posted by @John Barnette:
If I were starting all over again as a fresh new Realtor I would seriously consider joining a significant producing team as an assistant/ buyer's agent kind of a role. Two primary benefits are learning a massive amount of how the business actually works and people part of the business (the most difficult generally) and secondly you will be earning some money as you go along. A small part of many transactions. Instead of a large part of only a few transactions (in first year or so). Only can learn so much by books, real estate courses, training seminars, etc
And a personal business coach I once had always emphasized outflow will ultimately lead to inflow. Focus on outflow of money, time, effort, contacts, etc. eventually experience and money will inflow back to you.
The business is a roller coaster for sure. Lots of ups and downs, zigs and zags. Hold on tight for quite a rush!
Never thought about starting as the assistant/buyers agent to a team. Makes sense, you could easily learn the business doing this. Outflow=inflow, got it! Have to focus on what I can do and put out and the rest will follow. Thank you!
Originally posted by @Rusty Scott:
The average agent closes something like 6 deals per year, which comes out to under $30k per year. It's why most agents don't stay in the business for long.
Ouch. Glad i didn't jump into being an agent. Does this number reflect agents who do renting, or agents who do houses?
Originally posted by @Tony Gonzalez:
Originally posted by @Rusty Scott:
The average agent closes something like 6 deals per year, which comes out to under $30k per year. It's why most agents don't stay in the business for long.
Ouch. Glad i didn't jump into being an agent. Does this number reflect agents who do renting, or agents who do houses?
I don't believe that number. Unless you're living in a place with very low priced homes. All the other opinions on this forum say that you can make much more if you put in the work.
Originally posted by @Johnny L.:
Originally posted by @Tony Gonzalez:
Originally posted by @Rusty Scott:
The average agent closes something like 6 deals per year, which comes out to under $30k per year. It's why most agents don't stay in the business for long.
Ouch. Glad i didn't jump into being an agent. Does this number reflect agents who do renting, or agents who do houses?
I don't believe that number. Unless you're living in a place with very low priced homes. All the other opinions on this forum say that you can make much more if you put in the work.
That is the average. It's pretty well publicized info. The basic rule in the biz is that 20% of agent make 80% of the money. It may be even more extreme than that.
I agree with you that if you outwork your competition, and are competent, you can do much better than the average. But your initial question was about median income for brokers.
Accept that nothing is ever good enough. Be constantly learning, growing, and getting better at your craft. The top 20% are always looking to go to the next level.
This basically comes down to the CREATORS and the EXISTORS.
Creators ask how can I improve constantly something and do it better at a high level.
Existors ( fantasy name I made up ) want to do the minimum to get by and then be lazy. They want to go through life and exist and not require much of themselves.
- Joel Owens
- Podcast Guest on Show #47
even more surprising most real estate agent are renters
Originally posted by @Joel Owens:
Accept that nothing is ever good enough. Be constantly learning, growing, and getting better at your craft. The top 20% are always looking to go to the next level.
This basically comes down to the CREATORS and the EXISTORS.
Creators ask how can I improve constantly something and do it better at a high level.
Existors ( fantasy name I made up ) want to do the minimum to get by and then be lazy. They want to go through life and exist and not require much of themselves.
I was hoping you would respond! Looking at your credentials you look like a very successful agent. If I become successful in the industry I would love to get into commercial real estate similar to yourself. Love the piece of advice! I could see how there would be these two type of people. It seems as if people become agents because they think it's easy and they'll strike it rich after a year or two (the Existors). Thank you so much for the advice! If you don't mind me asking what do you feel makes you successful as an agent? Thank you!
Originally posted by @Rusty Scott:
Originally posted by @Johnny L.:
Originally posted by @Tony Gonzalez:
Originally posted by @Rusty Scott:
The average agent closes something like 6 deals per year, which comes out to under $30k per year. It's why most agents don't stay in the business for long.
Ouch. Glad i didn't jump into being an agent. Does this number reflect agents who do renting, or agents who do houses?
I don't believe that number. Unless you're living in a place with very low priced homes. All the other opinions on this forum say that you can make much more if you put in the work.
That is the average. It's pretty well publicized info. The basic rule in the biz is that 20% of agent make 80% of the money. It may be even more extreme than that.
I agree with you that if you outwork your competition, and are competent, you can do much better than the average. But your initial question was about median income for brokers.
I see I see. You're right that is the question I asked, thank you for answering it! Yes I agree, have to outwork the competition and realize that it is not easy. After all I don't want to be average!
Originally posted by @John Barnette:
If I were starting all over again as a fresh new Realtor I would seriously consider joining a significant producing team as an assistant/ buyer's agent kind of a role. Two primary benefits are learning a massive amount of how the business actually works and people part of the business (the most difficult generally) and secondly you will be earning some money as you go along. A small part of many transactions. Instead of a large part of only a few transactions (in first year or so). Only can learn so much by books, real estate courses, training seminars, etc
And a personal business coach I once had always emphasized outflow will ultimately lead to inflow. Focus on outflow of money, time, effort, contacts, etc. eventually experience and money will inflow back to you.
The business is a roller coaster for sure. Lots of ups and downs, zigs and zags. Hold on tight for quite a rush!
I guess the bigger question is would you recommend this business to a young aspiring agent?
What makes me successful??
That everyday I am looking to get better and get an extra edge. Doesn't matter how much I know there is always more to learn.
If you learn how to relate to people, solve complex problems, and learn more to earn more everyday you will be ahead of 99% of the brokers/agents out there.
Drive will only take you so far so you need to align with people to where you aspire to be. Example no sense when getting licensed selling homes and learning from someone making 50k a year income if your goal is to do commercial for instance and learn how to make 1,000,000 a year.
Even if you do residential you might find you want to learn from the person making 300k commission a year etc.
- Joel Owens
- Podcast Guest on Show #47
Here is one of my favorites quotes from @Jay Hinrichs.
"As an Broker/Agent you build a business that you can do for a lifetime. Show me any flippers or rehabbers that have been in the business 15 to 40 years like many RE brokers like myself included"
-Pure Awesomeness!
@johnny lujan
Yes I would seriously look into the business if you feel that it may be something attractive to you. If you are self reliant, like problem solving, like people, like sales, comfortable being without a promised income. It can be hard starting out when young. I started at 29.
I personally do feel that being a licensed Realtor on a big team is perhaps the best way to get into the business. Will be lots of grunt work and long hours in the beginning and lots of work. But invaluable real life experience, activities to do and learn, and income. Plus you likely will be able to kick start your advertising if you work well with some big agents. I had success with post cards using language. "We just listed" or "we just sold". Instead of "I just....." I paid for the cards, postage, and leads were shared with the mentor agent whose sales I "borrowed" for my marketing purposes. Got career jump started that way.
Originally posted by @Joel Owens:
What makes me successful??
That everyday I am looking to get better and get an extra edge. Doesn't matter how much I know there is always more to learn.
If you learn how to relate to people, solve complex problems, and learn more to earn more everyday you will be ahead of 99% of the brokers/agents out there.
Drive will only take you so far so you need to align with people to where you aspire to be. Example no sense when getting licensed selling homes and learning from someone making 50k a year income if your goal is to do commercial for instance and learn how to make 1,000,000 a year.
Even if you do residential you might find you want to learn from the person making 300k commission a year etc.
Okay awesome I love that advice! I need to find someone to hang my license with that is where I want to be! Great thank you! Need to team up with a top producing team.
Originally posted by @James Park:
Here is one of my favorites quotes from @Jay Hinrichs.
"As an Broker/Agent you build a business that you can do for a lifetime. Show me any flippers or rehabbers that have been in the business 15 to 40 years like many RE brokers like myself included"
-Pure Awesomeness!
Wow that is a great quote and it's so true when you think about it! Definitely something you can make a career out of and not just something that is hot for a second.
Originally posted by @John Barnette:
@johnny lujan
Yes I would seriously look into the business if you feel that it may be something attractive to you. If you are self reliant, like problem solving, like people, like sales, comfortable being without a promised income. It can be hard starting out when young. I started at 29.
I personally do feel that being a licensed Realtor on a big team is perhaps the best way to get into the business. Will be lots of grunt work and long hours in the beginning and lots of work. But invaluable real life experience, activities to do and learn, and income. Plus you likely will be able to kick start your advertising if you work well with some big agents. I had success with post cards using language. "We just listed" or "we just sold". Instead of "I just....." I paid for the cards, postage, and leads were shared with the mentor agent whose sales I "borrowed" for my marketing purposes. Got career jump started that way.
So glad to hear these encouraging words. All of those things you mentioned are attributes that I atleast think I have and this is something that I not only have passion about but genuine interest. That is the major thing I'm worried about is my age playing a factor.
I was at first going to start with an independent broker but after hearing all of these responses I think I will join a bigger more well known team. Definitely going to use this advice!
@Sandy Thomashit it on the mark...work your network, referrals will come form people who know and trust you and building a client base to do that for you takes time...selling a $50k house can be more trouble, more time consuming and more aggravating than selling a $500k house so focus on a market and attack it...just my opinion !
Originally posted by @Bill Fennelly:
@Sandy Thomashit it on the mark...work your network, referrals will come form people who know and trust you and building a client base to do that for you takes time...selling a $50k house can be more trouble, more time consuming and more aggravating than selling a $500k house so focus on a market and attack it...just my opinion !
Great tips. Didnt think about a 50k house being more trouble than a 500k house. It makes complete sense though. Nice opinion! Thank you!
Just like ANY other business in this world, your success and income is 100% dependent on you, your goals, and the amount of action you take. I personally know a handful of agents who well surpassed $100k their first year as an agent.
I love this comment from @John Barnette:
"And a personal business coach I once had always emphasized outflow will ultimately lead to inflow. Focus on outflow of money, time, effort, contacts, etc. eventually experience and money will inflow back to you."
At my office, we say "Activity breeds Activity"
You get out of a Real Estate career what you put in to it.