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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RealEstateExpress.com
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
RealEstateExpress.com
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.
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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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RealEstateExpress.com
#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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RealEstateExpress.com
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
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