It would not be possible to sell offices, hospitals, banks or factories so quickly without the help of real estate agents. These representatives coordinate the valuation of properties, develop advertising material, find suitable buyers and negotiate sales and leases. They usually work with high-income buyers who run their own businesses or wish to invest in properties. People who want to start an activity as real estate representatives must take several courses or educational programs. In compensation, the annual income that can be expected for their services is considerably higher than the average general income.
Salary and skills
According to Indeed site data, real estate representatives average an annual income of US $ 90,000 per year as of 2013. This is considerably more than the average general income in the US that is US $ 51,170, according to a report of the Secretariat of Labor Statistics. However, this information is more inclined towards the side of agents that market residential areas, which explains the wide variation. Most real estate agents have, at least, completed high school; they frequently receive certifications and licenses that accredit them professionally. More and more agencies require that their agents have university studies. Some of the desirable features in a real estate agent include being independent.
Salaries by area
The income of real estate agents can vary greatly within the major regions of the United States: Northeast, West, South and Center-West. The agents that are located in the Northeast, have an average income that ranges between US $ 80,000 and US $ 106,000 – the lowest amounts are presented in Pennsylvania and the highest in New York. In the West, they reached maximum figures of $ 99,000 in California and minimums of $ 64,000 in Hawaii. In the region that includes Louisiana and Mississippi, agents earned from US $ 76,000 to US $ 105,000, respectively. As for the Central-West region, they received US $ 70,000 in South Dakota and US $ 95,000 in Illinois, representing the largest and smallest amounts.
Influential factors
We can find numerous factors that influence the income of a real estate agent. Those with more experience often earn more, since they have developed certain skills, such as finding new potential customers or selling commercial properties. More experienced representatives are more likely to sell more expensive properties, which positively impacts their profits. The geographical area also influences, since the States of California and New York contain properties that are sold at higher prices. In this way, they earn higher commissions, which are usually determined based on the sale prices of the property.
Professional development
It is expected that the labor supply, both for commercial agents and for housing, grow by 11 percent between 2010 and 2020, according to the BLS, which represents a growth slightly lower than the 14 percent growth in labor demand. The economy marks the step in terms of job opportunities; Small business owners tend to grow or expand their businesses in growing economies. They need larger properties to house the employees they hire for this purpose. In the same way, corporates require larger locations when they have already exceeded the capacity of their current location.