Real Estate Express Advertising Supplement - RISMedia - Oct. 2019

Advertising Supplement

2019 -2020 Real Estate Agent

Income Guide

What’s inside?

We surveyed nearly 2,000 real estate professionals to better understand the strategies and tactics they use to succeed. Find out what top real estate producers do to increase earning potential.

Real Estate Profile Real Estate Agent Snapshot Full-time agent average gross income: $78,052 (work 20+ hours/week)

Part-time agent average gross income: $24,556 (work <20 hours/week)

Average hours worked per week: 21-40 Career satisfaction: 3.75/5

The averages come from 1,915 real estate professionals who have taken a course with Real Estate Expressâ&#x20AC;&#x2122; sister company,

Real Estate Broker Snapshot

McKissock Learning, the leading provider of continuing education and professional development and/or licensed real estate

Average gross income: $149,349 Hours worked per week: 40-50

professionals who are subscribers to RISMedia, the residential real estate industryâ&#x20AC;&#x2122;s definitive source for news and information.

Career satisfaction: 4.45/5

Real estate earnings are up The majority of both real estate agents and brokers indicate they earned more from their real estate business in 2018 than they did in 2017.

57%

of real estate agents earned more in 2018 than in 2017

65%

of real estate brokers earned more in 2018 than in 2017

70 % 60 % 50 % 40 % 30 % 20 % 10 % 0%

Agents

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Brokers

2019 Real Estate Agent Income Guide | RISMedia

Real estate agents are satisfied and optimistic Overall, real estate agents are happy in their

markets and inability to find qualified leads,

careers. In fact, when compared to all American

according to this year’s survey responses.

workers across all professions, real estate professionals are 17 percentage points more satisfied. Last year’s survey respondents had a higher satisfaction (79 percent were satisfied or very satisfied with their career). The decline in satisfaction is due to lack of inventory in key

Career satisfaction rating

68%

Real estate professionals continue to be optimistic about the future of their real estate career, with 73 percent of respondents indicating their future looks bright. This optimism is fueled by the strength of the real estate market over the past several years.

Real estate professionals are optimistic about the future

51% MAYBE 21.2%

Real Estate Agents

NO 5.2%

YES 73.6%

All U.S. professions*

*SOURCE: The Conference Board, 2018

What makes a real estate career rewarding?

A career in real estate has many benefits. Here are the top attributes real estate professionals said are very important to them.

Attribute

% of respondents claiming it is very important to their career

Ability to help people

91%

Flexible schedule

84%

Income potential

77%

Being my own boss

74%

Work with homes, land, buildings, etc.

62%

On-the-go work environment

55%

“After 25 years, the best part of my real estate business is still the personal connections.”

- Laura, real estate agent, Oregon 3

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2019 Real Estate Agent Income Guide | RISMedia

It pays to be happy Seven out of 10 real estate agents are satisfied with their career choice. A healthy worklife balance, the ability to help people and respectable income are reasons they cite for their happiness.

Agents who are very satisfied with their career

earn an average of $71,000 more per year than agents who are not satisfied.

Income by Career Satisfaction (Full-time agents) $120,000

$108,939

$100,000 $80,000

$75,486

$60,000

$46,622 $40,000

$37,992

$20,000

Not satisfied

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Neither satisfied nor dissatisfied

Somewhat satisfied

Very satisfied

2019 Real Estate Agent Income Guide | RISMedia

Common factors that influence income Real estate agent income increases sharply with experience and hours worked per week, as is the case with many careers. For those just getting started in real estate, it’s important to find a supportive brokerage and helpful resources to keep you engaged and growing in your career.

When it comes to your weekly schedule, real estate agents need to weigh their work-life balance with income desires. Fortunately, in a real estate career, you get to make that decision for yourself.

Years of experience in real estate

Agent income rises with experience

The first year in real estate is the hardest, but

Under a year

agents who stick with it will see the payoff in just a few years. A supportive brokerage,

1-3 years

a knowledgeable mentor and a supportive

4-10 years

at-home network will all pay off in spades in

11-25 years

future years as you establish your business.

26+ years $0

$25K

$50K

$75K

$100K

$125K

Avg. hours worked per week

Longer hours pay off

Find the right work-life balance Eighty-four percent of real estate agents say

21-39 hrs

a flexible schedule is very important in their

40-50 hrs

career. While real estate gives you the option

51-59 hrs

to decide when you’ll work, those who reach

60 hrs or more

their full earning potential put in more hours.

It’s up to agents to find the work-life balance $0

5

Surround yourself with support

$50K

$100K

RealEstateExpress.com

$150K

that is best for their situation.

2019 Real Estate Agent Income Guide | RISMedia

Average income by brokerage type

Find a brokerage that’s a cultural and earnings fit

Hybrid brokerage

Eighty-four percent of agents say a fair commission split with their brokerage is

Independently owned brokerage

very important to them, but commission

National franchise

split is not the only factor that matters when selecting a brokerage. As with most

Other

professionals, company culture is also

Selfemployed

important. Brokerages vary based on their $0

$25K

$50K

$75K

$100K

structure, philosophy and agent earnings. If

$125K

you’re just kicking off a real estate career or considering switching brokerages, look for one that is both a cultural and earnings fit.

It pays to specialize $125,000

$100,000

$75,000

$50,000

$25,000

$0

N/A I don’t have a specialty

Affordable housing

Residential Short sales / Commercial Property properties foreclosures properties management and/or rentals

Military

Condos

Multi-family Investment properties properties

Second homes

Relocation

Green or Foreign Luxury real estate eco-friendly investment properties

Other

Real estate agents who focus on one or more specializations or designations earn more than agents who don’t associate themselves with a particular specialization. The specializations that are the most profitable are luxury real estate, green or eco-friendly properties and foreign investments.

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

6

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2019 Real Estate Agent Income Guide | RISMedia

Key areas where experts excel The survey identified four key areas where the experts excel. Similar to the 2018 survey, top earners are those who consistently find high-quality leads, invest in their professional development, utilize past clients to generate referrals, and set goals for themselves.

1

Network, network, network

Top earners consistently find quality leads

Agents who consistently find quality leads earn $100,000 more than the agents who are

Expert

failing at identifying top-notch leads. This is

Growing

is a business built on lead generation. Word

not surprising when you consider real estate of mouth and networking are the strongest

Novice

influencers in generating good leads.

Failing

Network with other agents,

$50K

$0

Avg. Income

$100K

$150K

network with neighbors, network with

acquaintances. Networking is the best way to see your real estate business thrive.

- Bridget, real estate agent, California

2

Invest in yourself

Top earners invest in professional development

Agents who invest in professional development opportunities earn nearly $50,000 more than

Expert

agents who are failing in this area. Thereâ&#x20AC;&#x2122;s

Growing

estate expertise. From online professional

no shortage of ways to increase your real development courses to in-person conferences, thereâ&#x20AC;&#x2122;s always something new to learn.

Novice

Staying informed on market trends and

Failing

taking professional development courses $0

$25K

$50K $75K Avg. Income

$100K

$125K

helps me provide the best possible service to my clients.

- Javier, real estate agent, Texas 7

RealEstateExpress.com

2019 Real Estate Agent Income Guide | RISMedia

3

Top earners generate referrals from past clients

Ask for the referral Real estate agents who are experts in generating business from referrals earn an

Expert

average of $76,000 more per year than agents

Growing

step in generating referrals from past clients is

who are failing in this area. The most important simply to ask for a referral. It’s also a good idea to stay in touch with past clients over the years.

Novice

Send out a monthly email newsletter, follow them on social media, host a client appreciation

Failing $0

$30K

$60K

$90K

$120K

$150K

happy hour. There is no shortage of ways to create a lasting impression on your clients.

Most of my business is referral-based

from past clients. These referrals are

important because they come with faith

from the person who referred them, so the relationship is easier from the start.

- Karen, real estate agent, Ohio

4

Set Goals

Top earners are expert goal-setters

Agents who consider themselves very successful at setting goals earn an average of $51,675 more than agents who are failing

Expert

at goal-setting. Whether it’s determining how many sales you want to close in a year

Growing

or how many leads you want to acquire each week, giving yourself an ambitious yet

Novice

attainable goal can help keep you motivated and productive. Make sure your goals are

Failing $0

$20K

$40K

$60K

$80K

$100K

$120K

S.M.A.R.T. (Specific, Measureable, Attainable, Relevant and Timely).

Each year I set goals for myself. There

hasn’t been a year that’s passed where I

haven’t reached it. It keeps me focused and honest with my priorities.

- Jeffrey, real estate agent, Alabama

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RealEstateExpress.com

2019 Real Estate Agent Income Guide | RISMedia

Spotlight on Success: The Power of Investing in Yourself A key area where successful real estate agents you have hit a plateau, the excel is investing in themselves—and you’d be right coach or program can be hard-pressed to find someone who understands a game-changer. It’s for this reason that Sherri this more than top real estate started her coaching business “Investing in coaching coach for over 20 years, Sherri in 2017. While Sherri still has an is going to help achieve Johnson. active license and continues to your goals a lot quicker sell houses regularly, seeing the Sherri attributes her success with less headache, positive impact that her coaching as a real estate agent and less expense, and has had on thousands of lives coach to her constant thirst for a more streamlined is what motivates her to get up knowledge, recommending both roadmap to success.” every morning. new real estate agents and those who have been in the business for years to do the same. Here, Sherri shares some top ways to invest in yourself.

1. Keep up with the latest newstand trends One of the simplest ways to invest in your education and professional development is keeping up with the latest industry news and trends. “Increase your knowledge by reading and being informed,” says Johnson. For Sherri, this is the key to staying relevant and on top of the competition.

2. Attend conferences and tradeshows Not only is this a great way to network with other agents and brokers across the country, but it is a fantastic way to “soak up every single thing I could learn from people who were successful.”

3. Hire a real estate coach Sherri explains that the best way to invest in yourself is to hire a coach. Just like the top athletes in the world engage coaches to guide them and provide accountability, real estate agents of all levels of experience should have coaches as well. “Investing in coaching is going to help achieve your goals a lot quicker with less headache, less expense, and a more streamlined roadmap to success,” says Johnson. Whether you want to increase your yearly income or feel like 9

RealEstateExpress.com

90-Day Bootcamp With Sherri Johnson Sherri explains that most real estate agents know what they need to do to achieve results, they just don’t know how to go about doing it. That’s where Sherri’s coaching comes in. “Our goal is to take motivated agents and bring out the best in them and help get them accelerated results using our strategies,” says Johnson. These strategies are outlined in her 90-Day Bootcamp with Real Estate Express. “Most agents are only speaking to the four to six people who want to buy or sell a home in the next 30 days. Our Bootcamp expands that and builds a pipeline of leads which can help agents predict how much they want to make in a given year.” Whether you are a newly-licensed agent or a seasoned pro, this boot camp has something for you. As Sherri explains, “there’s always something new you can learn.”

For more information about Sherri’s 90-Day Bootcamp, visit realestateexpress.com/bootcamp or visit sherrijohnson.com/schedule-your-calltoday to set up a free one-hour strategy consultation.

2019 Real Estate Agent Income Guide | RISMedia

Real estate career insights Qualities of top real estate agents Real estate brokerages are continuously looking for new real estate talent to add to their team.

Here are the top three qualities theyâ&#x20AC;&#x2122;re looking for with their agents:

55.9%

Consistent delivery of a superior

41.3%

People skills

customer or client experience

19.6%

A strong social network and ability to network

72% of brokerages face new agent recruitment challenges.

More than half of agents switch brokerages 60% of real estate agents in the survey have switched brokerages at some point in their real estate career. Agents cite commission split, training, mentoring, culture and leadership as their key reason for the switch. â&#x20AC;&#x153;I am fortunate to have a broker who is constantly wanting us to improve and be the

best we can be for our clients. We have a great support system to be successful agents.â&#x20AC;?

- Nicole, real estate agent, Ohio

63% of brokerage firms require salespersons to pay a brokerage fee.

3 most important factors when selecting a brokerage

#1 Commission split

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#2 Brokerage reputation

#3 Brokerage culture

2019 Real Estate Agent Income Guide | RISMedia

Gender pay gap The gender pay gap in real estate is similar to the national average. Across national statistics for all occupations, women are paid 80 percent of what their male counterparts are paid.

According to this survey, female real estate professionals earn

Female $72,334

81 percent of what males are paid.

Get the complete guide!

Download today at RealEstateExpress.com/Income

Male $89,256

2 019 - 2 020 Real Est ate Agent

Income Guide

Data in this report is from a survey conducted in June and July 2019 that generated 1,915 responses from licensed real estate professionals in the United States who are students of Real Estate Expressâ&#x20AC;&#x2122; sister company, McKissock Learning, or are licensed real estate professionals who subscribe to RISMedia. The study has a 3 percent margin of error at a 99 percent confidence level.

$

Methodology

Learn more about the study at RealEstateExpress.com/Income

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2019 Real Estate Agent Income Guide | RISMedia

It’s Time.

Invest in Your Own Success.

Here’s how to start investing in yourself: •

Set aside money for training and give yourself

Real estate is a career

•

Build learning goals into your business plan

where you get out of it

•

Carve out time to read, listen, watch and learn

•

Mix up learning formats with podcasts, videos

•

Look for accreditations and state approvals when

what you’re willing to put in, which is why many of us chose this profession. We are hard-working, customercentric salespeople who want to build wealth. And, as anyone in the industry will tell you, there isn’t only one

permission to use it

and in-person conferences signing up for training

path to success.

The key is to never stop learning. It’s that simple. Luckily, we live in a day and age where information is at our

Yazir Phelps, Chief Marketing Officer, Colibri Group

fingertips. The challenge is sorting through the clutter to find the strategies and tactics that actually work.

This report shows that real estate professionals who invest in their education earn $50,000 more per year than those who don’t.

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

Skill development and CE compliance

Designation and professional development

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McKissock.com

LuxuryHomeMarketing.com

Membership options available Access the entire library of training courses, continuing education

requirements and useful job aids for one low fee. Make education easy and affordable.