2018 Real Estate Agent
$
Income Guide
What’s inside? Find out what top producers do that others don’t and take action to increase your earning potential. We surveyed 1,000+ real estate professionals to better understand the strategies and tactics they use to succeed.
Customer Profile Real Estate Agent Snapshot Average gross income: $71,000 Hours worked per week: 21-40 Career satisfaction: 4.08/5
Real Estate Broker Snapshot Average gross income: $123,000 Hours worked per week: 41-59 Career satisfaction: 4.59/5
These averages come from 1,029 real estate professionals who have taken a course with Real Estate Express’ sister company, McKissock Learning, the leading provider of real estate continuing education and professional development.
Agent earnings are up The majority of both real estate agents and brokers indicate they earned more from their real estate business in 2017 than they did in 2016.
59%
of real estate agents earned more in 2017 than 2016
65%
of real estate brokers earned more in 2017 than 2016
70 % 60 % 50 % 40 % 30 % 20 % 10 % 0%
Agents
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RealEstateExpress.com
Brokers
2018 Real Estate Agent Income Guide | RISMedia
Career satisfaction Real estate agents are happy with their career. In fact, they are reportedly 28 percent more satisfied in their careers than American workers across all professions.* They are also optimistic about what’s to come in their real estate career, with 80 percent of agents and 85 percent of brokers indicating their future looks bright. This optimism is fueled by what respondents categorize as a strong and growing market.
Career satisfaction rating
79%
93%
51%
Agents
Brokers
United States* *SOURCE: The Conference Board, 2017
Real estate professionals are optimistic about the future 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Agents
2018 Real Estate Agent Income Guide | RISMedia
NO
UNSURE
YES
Brokers
RealEstateExpress.com
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Income by career satisfaction Eight out of 10 real estate agents are satisfied with their career choice. A healthy work-life balance, robust brokerage support, an adaptive approach to technology and a respectable income are reasons they cite for their happiness.
Agents who are very satisfied with their career earn nearly 4.5 times the income of agents who aren’t very satisfied.
$120,000
$105,413 $100,000 $80,000
$63,642 $60,000 $40,000
$23,333
$35,875
$33,449
Not satisfied
Neither satisfied nor dissatisfied
$20,000
Not very satisfied
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RealEstateExpress.com
Somewhat satisfied
Very satisfied
2018 Real Estate Agent Income Guide | RISMedia
Common factors that influence income Real estate agent income rises with experience and hours worked, as is the case with most careers. It’s important for those just beginning their career in real estate to find helpful resources and communities to keep them engaged and growing, especially in the first couple years. When it comes to hours worked per week, real estate agents need to find their sweet spot between work-life balance and their income desires. One of the best things about a career in real estate is that you get to make this decision for yourself.
Agent income rises with experience
Surround yourself with support The first year in real estate is always the hardest,
Years of experience in real estate
Under a year
but agents that stick with it see the payoff. Agents
$19,375
1-3 years
who have the most success in the first year are those that find a supportive brokerage and seek
$41,023
out a knowledgeable mentor for guidance. $62,138
4-10 years
$83,177
11-25 years
$86,239
26+ years $0
$20K
$40K
$60K
$80K
$100K
Longer hours pay off
Find the right work-life balance
Avg. hours worked per week
One of the best things about a career in real estate Less than 20 hrs
is flexibility in your schedule. That said, those
$31,159
21-40 hrs
reaching their full potential are putting in more hours. It’s up to agents to find the work-life balance
$56,521
that’s best for their particular situation. $99,378
41-59 hrs 60 hrs or more
$123,024
$0
$30K
$60K
$90K
$120K
2018 Real Estate Agent Income Guide | RISMedia
$150K
RealEstateExpress.com
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Broker trends: What you need to know When it comes to brokerage firms, they’re not all created equal. And that’s not a bad thing. Take a look at some of the trends below and see how your firm can stay ahead.
Trend 1: Real estate brokers are hiring Real estate brokerages are continuously looking for new real estate talent to add to their team. Brokers from around the country agree there are a few qualities that all top producers possess, and that they look for when recruiting agents to their firm. Agents who:
83%
1. Can consistently deliver superior customer or client experience 2. Have people skills 3. Have a deep understanding of the local market
of brokerages
4. Are willing to embrace new technologies
face new agent
5. Are a good fit with the brokerage culture
recruitment challenges
6. Are willing to continue learning about real estate and industry best practices
Why is this important? While there’s a low barrier to enter the real estate industry, there is a high barrier for success. Smart brokerages understand the difference and compete to keep top producers equipped with the tools and training they need to stay focused on “wow”-ing clients.
Trend 2: Agents have options There are large differences between real estate brokerages, including the company’s structure, operation and philosophy. It’s important to communicate your brokerage’s value proposition and recognize that not everyone is a cultural fit.
Average income by brokerage type International
$87,000
Self-employed
$77,792
National franchise
$77,477
Hybrid brokerage
$72,500
Independently owned brokerage
$65,696
Other
$53,125
Regional franchise
$34,167 $0
$20,000
$40,000
$60,000
$80,000
$100,000
Why is this important? Depending where your brokerage falls on this spectrum, it may give you a point of distinction when recruiting new agents or retaining your top producers.
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2018 Real Estate Agent Income Guide | RISMedia
Trend 3: More than half of agents switch brokerages More than half of the people in this survey have switched brokerages at some point in their real estate career. Agents cite a variety of reasons why,
Yes 58%
including agent/broker split, training, mentoring, fees, culture, and leadership among others. Why is this important? Just like in corporate America, culture plays an
40% No
important role in the overall productivity of your teams. The approach and standards you set for your brand matter, and the people on your team should align. Be sure you’re providing robust training and engaging your agents.
Trend 4: Brokerages are offering additional benefits Recruitment of new real estate agents remains a challenge among 83 percent of brokerage firms, and many haven’t upped the ante when it comes to offering additional benefits beyond the traditional commission split.
Does your brokerage firm provide the following benefits? Savings plan: (401K), 403(b)
17.75%
Medical insurance
17%
Reimbursement for education fees
14.25%
Dental
13%
Vision
10.5%
Long-term disability
9.25%
Short-term disability
9%
Death/dismemberment
6.25%
Tuition reimbursement
6%
Daycare 0%
1.25% 5%
10%
15%
20%
Why is this important? Times have changed, and brokerages are using traditional benefits to differentiate themselves and offer agents more stability.
2018 Real Estate Agent Income Guide | RISMedia
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Key areas where experts excel We identified four key areas where the experts excel. It’s no surprise that top earners are those who are experts in finding quality leads, winning listings and managing their budget. One interesting key takeaway is that these top earners are also investing in themselves (see insight No. 4 for more).
1
Network, network, network
Top earners consistently find quality leads
Agents who consistently find quality leads earn nearly $100,000 more than agents who
Expert
fail at finding quality leads. Not surprising
$122,674
when you consider real estate is a business
Growing
built on lead generation. Word of mouth
$84,377
remains a top source for referrals, so always Novice
Failing
be ethical.
$50,419
$26,341 $0
2
$30K
$60K
$90K
$120K
$150K
Understand your client’s needs
Top earners consistently win real estate listings
Agents who are experts at winning listings over other agents earn 3.7 times the
Expert
income of those who don’t. The key to
$111,145
Growing
winning the listing is truly listening to— and understanding—your prospective
$79,745
Novice
client’s needs and goals. In turn, you can customize your approach and solve their
$52,018
particular pain points. Failing
$30,154 $0
8
$20K
$40K
$60K
$80K
RealEstateExpress.com
$100K
$120K
2018 Real Estate Agent Income Guide | RISMedia
3
Gain marketing expertise
Top earners manage their marketing ROI
The rapid growth of digital marketing channels over the past few years has given
Expert
agents a wealth of ways to reach buyers
$107,500
Growing
and sellers, but it can add up quickly if not managed properly. Real estate professionals
$80,243
Novice
who are experts at managing their marketing spend are earning $64,000 more per year
$59,097
Failing
than those who are failing.
$43,462 $0
4
$20K
$40K
$60K
$80K
$100K
$120K
High earners stay updated on trends and best practices
Invest in yourself Agents who invest in their education and stay up-to-date on industry trends and
Expert
best practices earn 2.5 times the income
$99,385
Growing
of agents who are failing in this area. Now, more than ever, it’s important to invest
$71,483
Novice
in yourself and your career. There’s no shortage of opportunities, from professional
$45,668
development courses and news sites to social Failing
media and conferences.
$39,412 $0
$20K
$40K
$60K
$80K
2018 Real Estate Agent Income Guide | RISMedia
$100K
RealEstateExpress.com
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The gender pay gap is less than the national average Across national statistics for all occupations, women were paid 80 percent of what their male counterparts were
paid in 2016. According to our survey, female real estate professionals earn 86 percent of what males are paid.
Female $67,697
Other $63,438
Male $78,434
National wage statistics 2016*
Real estate agent wage statistics 2016
80% 20%
86% 14%
female vs. male earnings wage-gap
female vs. male earnings wage-gap
*AAUW, 2016
It pays to specialize As people enter the real estate profession, they usually pick an area or two to grow their expertise. Here’s a look at common specialties, as well as their associated earnings. $100,000
$90,000 $90,015
$91,208
$80,000
$70,000
$75,601
Multi-family properties
Military
$77,194
$78,468
$78,672
$79,072
$79,706
Second homes
Short sales/foreclosures
Green or eco-friendly properties
Investment properties
Foreign investment
$68,640
$60,000
$50,000
$75,525
$64,976 $55,820 Affordable housing
Property management
and/or rentals
Residential properties
Relocation
Commercial properties
The Institute for Luxury Home Marketing is the premier independent authority in training and designation for real estate agents working in the luxury residential market. Real estate professionals who earn The Institutes’s Certified Luxury Home Marketing Specialist (CLHMS) designation for luxury home marketing earn an average of $291,000 per year. Learn more at LuxuryHomeMarketing.com
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2018 Real Estate Agent Income Guide | RISMedia
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2 018 Real Est ate Agent
Methodology Data in this report is from a survey conducted in February 2018 that generated 1,029 responses from licensed real estate professionals in the United States who are students of Real Estate Express’ sister company, McKissock Learning. The study has a 5 percent margin of error at a 99 percent confidence level. Learn more about the study at RealEstateExpress.com/Income
2018 Real Estate Agent Income Guide | RISMedia
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It’s Time. Invest in Your Own Success. Real estate is a career
those who self-identify as “failing” in this area earn just $39,412 per year. Let that sink in for a moment: You could earn nearly $60,000 more each year by investing in yourself.
where you get out of it
Here’s how to start:
what you’re willing to put
• Set aside money for training and give yourself
in, which is why many of us chose this profession. We are hard-working, customercentric salespeople who want to build wealth. And, as
permission to use it
• Build learning goals into your business plan
anyone in the industry will tell you, there isn’t only one
• Carve out time to read, listen, watch, and learn
path to success.
• Mix up learning formats with podcasts, videos
The key is to never stop learning. It’s that simple. Luckily,
we live in a day and age where information is at our
• Look for accreditations and state approvals when
fingertips. The challenge is sorting through the clutter to find the strategies and tactics that actually work.
and in-person conferences signing up for training
This report shows that real estate professionals who invest in their education earn 2.5 times as much as those who don’t. Agents who self-identify as “experts” in staying updated on trends and best practices earn an average gross income of $99,385 per year, where
Tom Davidson, General Manager, Real Estate Express and McKissock
A full spectrum of industry-leading real estate education solutions Get your Brokers License
Go ahead. Give yourself permission to invest in yourself. Pre-licensing and exam prep
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