What Is a Realistic Salary for a First Year Real Estate Sales Agent?
First-year salaries for real estate agents vary from one place to another.
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Approximately 162,560 real estate sales agents worked in the United States as of May 2012, according to the Bureau of Labor Statistics. Real estate sales agents usually work with licensed brokers or real estate agencies, showing homes to clients and preparing documents when they make sales. Some sell commercial properties such as office buildings and store locations. Salaries for first-year real estate sales agents can vary, depending on where they work.
National Average and Job Basics
The average annual salary of a first-year real estate sales agent was $33,000 as of 2014, according to the Simply Hired job site. In real estate, salaries or incomes are mostly earned through commissions. Most real estate sales agents earn 3 percent on the listed sales price of homes, according to Move, Inc. The minimum educational requirement for this job is a high school diploma. Real estate sales agents must also take real estate courses so they can pass the required licensing exam through the National Association of Realtors or other real estate associations. To qualify for their real estate licenses, they must have at least one year experience in real estate sales, according to the Bureau of Labor Statistics, which they can obtain through their employer. Other essential requirements for the job are organizational, interpersonal, problem-solving, business and computer skills.
Regional Averages
In 2014, average salaries for first-year real estate sales agents varied most significantly within the South region, according to Simply Hired, where they averaged the highest first-year annual salaries of $53,000 in Washington, D.C., and the lowest first-year salaries of $26,000 in Mississippi. Average salaries in the Northeast ranged from $30,000 a year in Maine to $40,000 in Massachusetts. In the West, average first-year salaries ranged from $27,000 in Montana to $38,000 in Alaska and California. In the Midwest, averages ranged from $26,000 in South Dakota to $35,000 in Illinois and Minnesota.
While Simply Hired reported salaries of $33,000 for first-year real estate sales agents in 2014, the average annual salary for all real estate sales agents was $51,934 as of May 2012, according to the BLS. However, the median salary was only $39,140 a year, which suggests that those with the highest pay pulled the overall average well above the median. Salaries for first-year real estate sales agents typically fall between the 25th and 50th percentiles of real estate agents' salaries, which ranged from $27,470 to $39,140 in 2012. During their first year, real estate sales agents learn to prospect and close clients. They earn less than more experienced agents because they are not as proficient at prospecting and closing. Consequently, they earn less in commissions.
Average Job Outlook
The BLS estimates an 11 percent increase in jobs for real estate brokers and sales agents from 2012 to 2022, which is on par with the national average for all occupations. Population increases should drive demand in the number of jobs for real estate brokers and sales agents. More people are also relying on these brokers and agents to represent them when their purchasing homes. Real estate jobs are highly contingent on the economy, as more homes are sold when the economy is strong.
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Photo Credits
- George Doyle/Stockbyte/Getty Images
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