|Real Estate Agent: A Quick Look
||$43,430 or $20.88 per hour
||A high school diploma or the equivalent
||Depends (Some Agencies Require Training)
||Real estate offices
|Number of positions (U.S.)
|Job Growth (2012-2022)
||3% (Much slower than National Average)
|New positions (2012-2022)
Real Estate Agent Job Description:
The real estate agent job description includes finding clients, helping clients find the type of property they are looking to purchase, assist clients in the process of purchasing a property, create brochures and fliers about properties for sale, assist in negotiations between the seller and the buyer, and more. Their main goal is to help their clients buy or sell their property for the highest possible value they can sell it for. You can learn more about the real estate agent job description in our report.
Real Estate Agent Salary:
According to BLS data, the median annual real estate agent salary for all real estate agents employed in the United States was $43,430 or $20.88 per hour. The lowest earning 10 percent of real estate agents earned annual salaries of less than $21,540. The top earning 10 percent of agents earned annual salaries of more than $105,270. Commission is primarily made from sales, and income can initially be somewhat varied. Commission may also need to be divided among multiple people. Learn more about the real estate agent salary in our guide.
How to Become a Real Estate Agent:
Would you like to learn how to become a real estate agent? Read on! To become a real estate agent, you need a high school diploma or the equivalent. Agents must become licensed in the state in which they work. However, if the individual has taken college classes they may not be required to take pre-licensing classes. Read on to learn more about how to become a real estate agent.
Real Estate Agent Job Outlook:
The BLS data estimates that the real estate agent job outlook is somewhat slow. The projected growth of the profession is 3% between the years 2014 to 2024. This is notably slower than the average growth of all professions in the United Sates. As of 2024, the BLS estimates that there will be an estimated 432,100 real estate agent positions in the U.S. You can read more about the real estate agent job outlook below.
Real Estate Agent Salary
As of 2014, the average annual real estate agent salary was $43,430 or $20.88 per hour. This is slightly lower than the average annual salary of all other jobs in the United States. The value of the average annual salary is not the same as the median value. However, they may be very close at times. The median value is the middle salary value of all documented real estate agents employed in the United State. Half of all real estate agents earned more than $43,430 and half earned less. The lowest earning 10 percent of real estate agents earned annual salaries of less than $21,540. The top earning 10 percent of agents earned annual salaries of more than $105,270. For agents, the majority of their income is earned through commission sales. However, commission varies depending on the price and type of property sold. Also, commission may need to be divided up among firms, agents, brokers, and others. As a result, a real estate agent’s salary may vary based on the geographic location in which they are selling properties, how the economic conditions are in the area in which they are conducting sales, and how motivated they are as a real estate salesperson.
- Agents who have been working for 20 or more years typically earn an average salary of $68,000 or more annually
- Some of the highest paying cities for real estate agents include: Indianapolis, New York City, Reno, Denver, and Chicago
Agents can strive to increase their sales by attracting new clients by getting involved in community groups or doing various types of community outreach. Those just starting out as agents may find that they earn inconsistent income. They may go several weeks or even months before making a sale. Real estate agents just starting out tend to earn around $42,000 per year. As agents gain hands-on work experience, they tend to become better salespeople and earn higher commissions. When they become adept at closing sales and scouting out new clients, they tend to earn higher commissions. As previously mentioned, during times of economic decline it can be difficult for agents to make sales. As a result, their commissions may be low and their overall salary will be impacted. On average, real estate agents earn approximately 3% of the price they sell properties for.
How to Become a Real Estate Agent
If you want to know how to become a real estate agent, read on! You need to receive a high school diploma or the equivalent in order to become an agent. If you have earned an associate’s degree or a bachelor’s degree, you may be able to forego taking the required pre-licensing classes that prospective agents must take. However, this is dependent upon the rules of the state in which you are seeking licensure. Although a high school diploma may be sufficient education for some real estate agencies, other agencies may want to hire individuals who have an associate’s degree or bachelor’s degree from an accredited university of college. This is largely dependent upon how competitive the area is in which an individual is seeking employment. Certain universities and community colleges have begun to offer real estate classes and degrees or other courses pertaining to real estate. For individuals who want to open their own real estate company, it is especially beneficial that they have a solid education in business and real estate. Real estate associations also offer classes that are relevant and helpful for real estate agents to take. These courses are typically offered before a licensing exam is taken. These classes may cover topic such as real estate law, financing mortgages, and more. Licensure is required in all 50 states. However, licenses typically do not transfer from one state to another. In order to pursue real estate licensure, an individual must be 18 years of age or older, complete a specific number of real estate courses, and pass a licensing exam. Certain states may require special clearances or other requirements. Continuing education requirements are typically necessary in order to keep a license current. Licenses must be renewed every 2 to 4 years depending upon the regulations of the state in which the license is held. On the job training may occur when agents first begin working. They may shadow and observe other agents. Some companies offer training classes or programs to new hires. However, this varies significantly from company to company.
Real Estate Agent Job Description
The real estate agent job description includes:
- Seeking out new clients
- Helping clients identify and locate the type of property they want to purchase
- Give clients advice on the condition of the market, prices, and more
- Give clients tours of homes they may be interested in purchasing
- Helping clients go through the process of purchasing a property
- Writing out descriptions of properties currently for sale
- Assisting in the seller and buyers’ negotiation
- Create documents pertaining to the sale of property
Real estate agents can sell residential properties or commercial properties. Depending upon what they sell, their responsibilities may vary somewhat. Agents may help clients sell a property or they may help clients purchase a property. It is important that agents meet with their clients to determine what type of property they want to purchase, what their price point is, and more. Agents must be familiar with the area in which they are helping clients buy or sell homes. Clients will likely ask questions about the area, the housing market, the schools, and other pertinent topics. Some real estate agents work out of their home, but many work from traditional offices. Many agents work over 40 hours each week. In order to accommodate their clients’ schedules, they may need to work evenings or over the weekends. Agents may be able to set their own schedules, but their schedules may be somewhat irregular.
Real Estate Agent Job Outlook
The projected real estate agent job outlook is somewhat slow in the upcoming years. Between 2014 and 2024, the profession is only projected to expand by 3%. This is noticeably slower than the average growth of all other professions in the United States. During 2014, there were 421,300 real estate agents working in the United States. By 2024, the BLS projects that there will be 432,100 employed agents in the U.S. Despite the anticipated slow growth of the profession, there may still be additional growth in this job field as individuals as millennials age and enter the home-buying market. The real estate market is highly influenced by factors such as the economy, employment rates, population growth and the location in which properties are being sold. In the future, these factors will continue to influence the field of real estate sales. As a result, there may be ebbs and flows within the profession. As the population expands, there should be a continued (or greater) demand for real estate agents. Due to high levels of debt, individuals from the millennial generation will slowly be entering housing market. However, they should begin to purchase houses over the next 10 years. Many people still want to own their own properties as home-ownership is still considered by many a solid investment. If overall spending gradually increases and the job market improves, we should see greater increases in home-buying. Families will also be moving to take other jobs, looking for larger homes, or even downsizing to a smaller home and will likely need the services of a real estate agent. However, if the economy slows or declines housing sales typically decline or come to a halt. It is not terribly difficult to become a real estate agent, but it can become a highly competitive field to work in. When the economy grows, many people may become agents and competition for sales can increase significantly. In times of economic stagnation, fewer real estate agents tend to be employed. Although it can be difficult to make sales during economic decline, in some ways it may be easier because there can be less competition. New agents may struggle to compete with experienced agents. However, as they gain experience in the real estate market they should develop skills in sales and should become successful.
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