Are you considering a new career in real estate? If so, one question that often comes up for most individuals who are considering a real estate career is, “how much money can I earn?” This question is covered for the real estate examination, and one every real estate student must learn, and that is, commissions are negotiable! Commissions are negotiable between buyers and sellers, negotiable between real estate brokers and agents, and yes, real estate commissions are also negotiable between real estate brokers who are involved in the same transaction. In other words, if you had a property listed for sale and another real estate agent helped sell this property, the commission that you agree to share with the cooperating broker is negotiable. Bottom line, commissions are ALWAYS negotiable!
Still, the question asked is, “how much money can you earn as a real estate agent?” Since commissions are negotiable, salaries and fees, (as with any employer) are negotiable. Of course, many real estate agencies and brokers have policies and set procedures for how much money they pay their real estate agents and team members. However, as with any profession, the amount of money you can earn from your broker or company is negotiable. Be sure and ask this question when you interview with a broker about a potential career with their firm because every agency is different. Most real estate agents are paid on commission, so the split between the broker and you, the agent, can vary.
Let’s examine some of the pros and cons for a commission-based position. The downside is that you only get paid when you succeed in selling a property or having one of your listings. Understand, a commission-based income may be challenging for many individuals. After all, you can put a lot of time, money and effort into your business and may have to wait several weeks or even months before the fruits of your labor begin to pay off.
On the flipside, and a definite advantage to commission only compensation is that you can earn as much money as you like. There's no cap, or limit to the amount of income you can make, therefore, commission only can be very profitable! In other words, real estate agents can set their own pay scale. There is no limitation to the amount of money you can earn each month. Yes, that will require a lot of elbow grease and hard work, but in the end, your revenue potential is unlimited!
Second, regardless of how much money you can earn as a real estate professional, at the end of the day you are creating and building your business. I believe that's one of the significant benefits of becoming a real estate professional. You get to choose the hours you want to work, and you get to create a business you can be proud of owning. Yes, you are the boss!
Many real estate professionals have been able to take their real estate careers to higher levels by implementing strategies and concepts learned from books such as The Millionaire Real Estate Agent by Gary Keller. Gary does a beautiful job explaining how you can create wealth by building a real estate team in your local marketplace.
Third, besides an unlimited income potential and creating your own business, real estate is a career that allows you to meet and network with many other individuals in your community. Many of the best real estate investments and opportunities for myself have happened because I was able to network with some key people in my marketplace.
Finally, as a real estate professional, you will become familiar with the marketplace and find opportunities for investing in real estate, one of the critical benefits to getting your real estate license. Let’s face it, real estate is one of the best investments you can make for creating wealth.
In closing, it's complicated to determine an exact amount of income that you can earn as a real estate professional. I do want you to be aware that it can be challenging for many people to get started selling real estate, however, if you have the right attitude, the proper training and you put your mind toward your goals, you can succeed in anything you do.
Real estate provides some excellent financial opportunities, and yes, your income potential is unlimited. Don't let doubt or fear discourage you from going after your dreams and moving toward a career you can be proud. I believe that real estate is an excellent career for you to consider and your income potential can be as significant as you would want it to be.
If you’re a real estate professional and not earning the kind of money you had hoped for, perhaps you need a fresh start, additional training, or just a short coaching call. If so, feel free to drop me an email at John@BusinessTechGuy.com. I would love to visit with you.
For more information about a career in real estate check out our courses right here at GlobalRealEstateSchool.com. Thanks for visiting the blog post and always feel free to reach out to me if you have any questions.
I would also love to hear comments from other real estate professionals about your thoughts regarding income potential for new real estate recruits and your success stories you could share with my readers.
Go out and make it a GREAT day!
John D. Mayfield
Author | Broker | Speaker