Average Income

Posted by: Nash

Average Income - 02/07/19 01:58 PM

Hi All - I’m very interested in becoming an agent! Satisfaction with the role itself and helping people is most important to me. However, I’m single and have to be able to pay the bills, so I’m asking the dreaded question. I read on Indeed that the average agent income is 40k. I thought it would be higher than that. Assuming the market conditions in Nashville are fair and steady...and an agent is putting in 60-70 hours per week, studies and works hard to execute best practices, partners with an experienced mentor, focuses on client satisfaction and networking...is 125k per year realistic after 3-5 years experience (before expenses)?

Thanks in advance for the feedback!
Posted by: koz

Re: Average Income - 02/07/19 07:48 PM

I've read that stat before as well(40k) and without any studies or facts to back it up, I would say 100% certain it is less than that.
Now if they are just talking experienced(2+ years), full time agents maybe 40k but I still doubt it. Maybe that top 1% drags the average up to 40k+ though.

For instance I was at a big brokerage with 160 agents in my city-based office in Pittsburgh. First year I wasn't extremely busy, 2nd year I still wasn't all that busy but i barely cracked the top 20 in the office. I made 32k.

Is 125k a year realistic? Yes. Is it the norm after 3-5 years, not even close. I'm in my 5th year and will make about that TBH, and other than the real top dogs, and a few teams I outearn every solo agent I know around here. And I still have a lot to learn and could be busier(I live in an area with a lot of lower priced homes too which doesn't help) but I also get paid a much higher split than most of them and actually know we are in the 21st century so I have some big advantages!

The norm after 3-5 years is in fact, having a different full time job and wondering if those couple deals a year are worth the costs. That is the norm.

I'm not saying you, or anyone here, but that is the norm in the industry. Go to your local big name brokerage for a year and count the new agents that start after you. Wait another year and see how many are left.

At least in my area, if you work for certain traditional brokerages you need to sell 52 houses at our average price point to make 125k take home

If you are serious about doing more than keeping yourself busy and supplementing a spouses income, you ned to learn as much as you can. Out of the gate, learn the legal/paperwork aspect and hone your people skills. Take it upon yourself to learn real lead gen, and I don't mean to pay every 'coach' out there 1000 bucks a month lol.
My big brokerage taught me nothing about actual lead generation though, they will have a class about harassing expireds or fsbo's..busy agents let you sit open houses, but thats about it.

Study online youtube, workplace, learn everything, most importantly which brokerages actually offer the most to agents. That is a big one, there are agents 40 years in the business who are great but giving up a ton of money because they didn't adapt to the changing industry. Making 80k but paying 80k to do it.

I took it upon myself once I got my feet wet to intensely research what each brokerage gives as far as support, technology, and yes..most importantly MONEY. Thats why I work. And yes, before I get mobbed, I wouldn't be where I am without excellent training, support, tech, and true collaboration from non-competing agents
Posted by: JohnN

Re: Average Income - 02/07/19 07:50 PM

Hi Nash
I've seen new agents make more than $125,000 their first year. If your willing to work the hours and find a good mentor you should do fine.
The one thing to always be aware is that there are no guarantees in this business. When you are your own boss you need to be able to self motivate. I see a lot of agents, including myself, getting distracted when they could be doing something more to drive their business. (I love noon baseball games). grin
Posted by: Nash

Re: Average Income - 02/08/19 04:45 PM

Koz - Good feedback...much appreciated! I’m still weighing the pros and cons, and you’ve given me a lot to think about.
Posted by: Nash

Re: Average Income - 02/08/19 04:53 PM

John - Thanks for your response! Appreciate the feedback.
Posted by: casperpearl

Re: Average Income - 02/26/19 10:42 AM

Hey Nash, I got my license in 2017 and just switched to full-time in real estate this past June. I made $109,000 last year in the Columbus, Ohio market where our average home sells for around $180k, and I've been nominated for the 2019 rising star award by our local board which makes me super proud in the work I'm doing! If you're driven, can listen to proven methods, adopt your own and keep pushing until you hit your goals, you'll make it, I promise!

Shoot me a message if you're looking for a mentor as I'd love to help you establish your business!
Posted by: Nash

Re: Average Income - 03/08/19 12:34 PM

Hi Casperpearl - Thanks for the feedback and offer of mentorship! Once I get started, I’ll be in touch. Congratulations on a great 2018 as well as your Rising Star Award....hard work does pay off!