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Average Real Estate Agent Commission

A real estate agent’s commission can be described as the amount of fee he will charge for selling your house. How much he is going to charge you depends on various factors. These factors can be:

State he works in

Experience

Price of the house

All these factors combine to determine the average real estate agent commission.

How Does Real Estate Commission Works:

Usually more experienced an agent is, more commission he will make. But this is not it. The states they operate in also play a big part in determining their commission rates. For example, the average commission in Georgia State is 5% which is 1% lower than the national average.

But remember, there some other factors that determine the final average real estate agent commission, for example:

Share of buyers’ and sellers’ agent

Out of the remaining portion of seller’s agent, 50% goes to the broker.

The broker’s share is for providing the agent a platform to work from, to cover office expenses etc.

The remaining portion can be described as the salary of the real estate agent.

There are some other costs that might occur before he finally gets his salary. These factors are:

Share of the professionals who stages the home

Share of agents who provided their assistance in the sale

Which can further reduce the actual commission to as low as 1.5%.

However, the estimated average real estate agent commission is around $46k. The figures go from $25k to over $100k. $25k represents the lowest and the $100k represents the highest earners in the industry.

These numbers are taken from payscale.com and the information may vary a little. However, majority of the agents earn between the above given ranges depending on their experience in the industry.

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What are The Pros And Cons Of Becoming A Real Estate Agent?

If you are a fresh graduate who is looking to start his career, or a job holder who is tired of working and making money for others. You might be thinking be thinking of starting a career in real estate. The real estate business ensures your freedom and can generate good money out of it. However, before starting off as a professional realtor, you will need to know what are the pros and cons of becoming a real estate agent.

Some of these are:

Pros of being a real estate agent

It just takes a few weeks or months to complete the training and become a professional realtor. The length of time period depends on the rules and regulations of the respective state.

Being a real estate agent means you are your own boss. It gives the freedom and independence that you have always been looking for.

There is no fixed income. The amount of money you make is directly proportional to the amount of work you put in.

It is a respected profession. Real estate agents are ranked higher than other profession according to most polls.

Sometimes realtors meet the clients who are in an urgent need to sell their property, helping them gives you satisfaction and inner peace.

These were some of the advantages of being a realtor. However, as we all know everything has a good and bad side to it. Same is the case with real estate business. So the next part of our article about pros and cons of becoming a real estate agent is:

Cons of being a real estate agent

Starting a real estate business will require time, effort and money and there is still no guarantee that you will succeed.

All the responsibility of the business is on your shoulders, if something goes bad, there is no one who will come out and help you sort this out.

Being a realtor also means that there will be days, or even months without clients and you will be spending your time by staring at walls.

Real estate is a 24 hour job. You are not sure when the client will come so you have to be ready all the time – in your office or on your phone.

Conclusion

However, if you look at the above given pros and cons of becoming a real estate agent, you will know that pros are of much more importance than cons. And once you start enjoying the pros, nothing can stop you from being a successful realtor.