Even if you do not own a college degree, becoming a real estate agent is a great way that will help you earn a six-figure income. Although, many agents do earn less than six figures. The majority would even quit their jobs as real estate agents before they even earned their first commission.
If you were wondering can a real estate agent earn 6 figures, the simple answer is yes. In this article, you can explore the income potential for real estate agents and how to achieve such a sum.
What is the Model of Payout for Real Estate Agents?
Before it is discussed how much a real estate agent can earn, it is important to first go through what is the actual payout model in this industry. People do not receive a fixed salary by being real estate agents unlike in 9 to 5 jobs.
Real estate agents are compensating that with a commission they receive from every successfully completed deal. The commission can be based on the value of the property, as well as the split between your real estate broker and brokerages.
Developing the Right Tactic
If you wish to earn an income of six figures as a real estate agent, then you will be going to need more than just a few yard signs. To elaborate, real estate agents, need to be careful and watch their expenses, especially ones dealing with advertising.
Advertising can eat up a huge chunk of profits so you would need to be smart about it. When you do spend money, you would need to be very careful about how you spend it. For instance, some real estate agents choose to invest in Facebook ads as advertisements that maintain an easy-to-find online presence. As Greg Luther from https://www.gregluthercoaching.com/ would confirm, you need to have a superior online presence. Other agents invest in mailers. On the other hand, there is also an option of working on growing your presence in an “organic” way with social reach. To be precise, creating custom videos for each potential homebuyer.
Generally, the vast majority of real estate agents are working for the commission. This would mean that they earn, in the majority of cases, all of their earnings when they sell a house or help the client buy one. Usually, when someone sells their house with the assistance of a real estate agent, the seller would need to pay a 5 to 6 percent commission on the sales price of the home in question.
This commission is then divided between the buying as well as the selling agent. The common arrangement is for each agent to earn about 3 percent of the commission. That means, that when selling a house for 250 thousand dollars, each agent can earn 7 thousand 500 dollars.
If you are considering becoming a real estate agent, know this. This career could be fulfilling. Not only that you will get to meet different people, but you will have the opportunity to earn a lot. In order to do so, have in mind that the best strategy to take is an educated one with all knowledge obtained first.