An age old question that comes up more often than you may think! How do Realtor’s get paid? It’s really a great question and that’s why I’ve dedicated a full podcast episode to that – listen to it on you favorite podcast app.
Unlike most careers that have an hourly or salary rate that slowly grows over your tenure, Realtors get paid on commission. Commission in the real estate industry is often a percentage of the gross sale amount that is earned upon the successful closing of a home or land or real property.
For some, this is fantastic because there is no glass ceiling. The harder you work, the more you earn and the less you work, the less you earn. For others, this sort of income can cause anxiety and fear not knowing where the next deal is coming from… and I think that idea can be true in all of us in varying degrees.
Earning a commission-based income requires you to be thoughtful in how you’re saving / planning so you can sustain your business as an agent over your career. It can be exciting when you get that check after a successful closing, but realizing that your next closing is a couple of weeks or a few months out, will help you keep that “spending” mentality in check.
So… how much do Realtors actually make? Well, that depends too. It depends on the sale price of the home, their commission and a few other factors like area & location. In Central Wisconsin, with the homes being reasonably priced and the economic conditions staying pretty stable, I’d say about $40,000 – $60,000 would be a common average for a full-time agent. That may be quite a bit lower for first-year agents just getting in the industry or part-time agents that do a bit of business on the side, but that is just an average – remember that depends on a number of factors.
The location matters too. In larger cities, Realtors may make more per transaction and therefore they may not do as many deals but have a higher gross commission per sale so they are still making a decent wage. I’ve said it before but it really all depends!
If you’re considering the career, check out this podcast episode on what the career is like and how to get started? Maybe commission gets you excited because you like helping others and working in a sales environment.
If you have a chance to check out either podcast, or both, let me know what you think! I’d love to hear your feedback!
Brought to you by Austin Solomon | 715-212-4693 | Coldwell Banker Action