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What is the starting pay in real estate?

What do you start off receiving as a real estate agent?

real-estate investment-management realestate housing
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George’s Answer

Hi Joseph, there isn't really a straight forward way to answer this. If you are going to work as a residential real estate agent there is generally no base pay. It is 100 percent commission. Some younger agents start off by joining a team as a buyers agent or other role. A buyers agent will generally do buyer showings for an established agent and then receive an agreed upon percentage of the commission when they buy. The team may also have an opportunity to share in leads that come into the office, for example they may pay for zillow leads that you get a certain number of per month. Again, this is generally not a salaried position but every team is different.

If you are hoping to have some base pay starting out you may be able to get a job as an assistant to an established agent and learn from there. I hope that helps.
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Cam’s Answer

Real estate agent pay depends on the number of real estate transactions they close. The number of real estate transactions depends on how many people are buying/selling properties in a particular area. Real estate has historically been sensitive to interest rates. To get a better sense for compensation, I would look into the average salary for real estate agents in your area. Real estate agents typically start below the average and compensation grows as they build a client base.
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John’s Answer

Hi Joseph,

I agree with George and Cam's answers. Also, real estate can be a very financially rewarding career. But it's not easy to get started. I'm assuming you are still in Highschool which helps a lot. You can build your real estate career now while still living at home. You won't have to worry about paying so many bills wondering if you'll get a listing or a buyer this month! I wrote an article on how to get started as an agent I think you might like. It assumes you start as an assistant. Doing so adds some predictability to your pay and gives you the opportunity to learn from an experienced agent.

https://www.careervillage.org/questions/617038/how-do-become-a-real-estate-agent

Here is an article on where to buy real estate that may interest you:

https://www.careervillage.org/questions/616997/what-is-the-best-place-to-buy-real-estate

Best of luck!

-John

John recommends the following next steps:

Read the attached articles
Get your real estate license (If you are too young by law, go as far as you can.) Some states may require you be 18. But there's no age limit on studying
Get a job as a real estate agent's assistant
Get a job as a handyman's helper
Stay in school. Your classmates will soon be buying houses from YOU!
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James Constantine’s Answer

Dear Joseph,

Kickstarting Your Real Estate Career: A Guide to Initial Earnings

The world of real estate can be a rewarding venture, with the initial earnings of an agent largely influenced by factors such as geographical location, personal experience, the brokerage firm involved, and prevailing market conditions. It's crucial to note that real estate agents usually earn their income through commissions from sales they've successfully brokered, as opposed to a conventional salary. In the United States, a novice real estate agent can expect to earn anywhere from $20,000 to $50,000 annually. However, these figures can fluctuate significantly, either upwards or downwards, hinging on individual performance and the dynamics of the specific real estate market.

Typically, real estate agents receive a commission, which is a percentage of the final sale price of a property. This rate can differ, but it's usually around 2% to 3% of the sale price. For instance, if an agent successfully brokers a property sale for $300,000 at a 2.5% commission rate, their earnings from that transaction would amount to $7,500.

For those embarking on a career in real estate, it's crucial to understand that building a solid client base and establishing a reputable name often takes time. As such, while the initial earnings may not be as lucrative as in other professions, the potential for substantial income growth is certainly present as agents gain more experience and expand their industry network.

Here are the top 3 authoritative sources I've used for this information:

1. National Association of Realtors (NAR): As one of the most esteemed organizations in the real estate industry, NAR provides invaluable insights and data on market trends, agent compensation, and industry standards.

2. Bureau of Labor Statistics (BLS): BLS is a reliable source of comprehensive information on various occupations, including real estate agents. It provides data on median pay, job outlook, and other relevant statistics.

3. Real Estate Brokerage Websites: Websites of well-established real estate brokerages provide insights into typical commission structures and initial earnings for new agents in different markets. These sources offer practical information based on industry practices and trends.

May God bless you on your journey!

James Constantine.
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