Common Realtor Questions Answered

Are you thinking about becoming a Realtor? Maybe you’ve recently earned your real estate license and you’re working on a business plan to get your career off and running. After all, business is good – right? Houses continue to sell like hotcakes in Texas and throughout the country. Realtor.com predicts that millennials will continue to drive the housing market with first time home sales well into 2023. There may never be a better time than now to become a Realtor but that doesn’t mean your job will be a piece of cake. Running a real estate business is no easy feat. If you’re new to the business you’re probably full of questions. You may have some misconceptions on how much money you can make. Maybe you’re grappling with what type of brokerage is best for you. What about commission splits? Here’s some insight on some of the most common questions and concerns that Realtors have moving forward into the competitive and fast-paced business of real estate: 

What is the Average Annual Income for Realtors?

Ziprecruiter reports that the average annual income for a Realtor in 2022 is $89,060. Average Realtor incomes across the country range from $52,000 to over $100,000. A first year Realtor can realistically expect to make between $18,000 – $38,000. Earnings go up and down depending on the residential or business location, the local market, commission structure and, of course, how hard a Realtor hustles.  

What Is a Typical Commission Split?

It’d be nice if you got to keep 100% of your commission when you sell a home but that’s just not the case. In most home transactions there is a buyer/seller agent split. These agents will split a commission fee that’s usually 5-6% of the purchase price of the home. Once the buyer/seller agents have split their commissions, they must split with their brokerage. This is typically a 60/40 split: 60 to the agent and 40 to the brokerage.

How Do I Pick the Best Brokerage for Me? 

As a Realtor, you’ll need to decide what type of brokerage is the best fit for you. This is not a decision to be taken lightly as the right brokerage firm can make a big difference in your career. You can choose a national brokerage such as RE/MAX, Keller Williams and Century 21. You’ll have a national name backing you and great resources. There are smaller firms referred to as “Boutique Brokerages,” that specialize in local markets. Or, you could join a real estate team (part of a brokerage firm) typically led by an experienced, successful agent(s) with a handful of agents working under them. 

What are the Continuing Education Requirements? 

Every state requires Continuing Education classes for real estate agents. The actual requirements vary by state. Texas Real Estate Commission (TREC) requires that real estate licensees complete 18 hours of CE during each license renewal cycle. TREC requires agents that are renewing for the first time to take 98 credit hours to renew their license. You can always take real estate courses at any time. They’re a great way to stay on top of industry trends and become an expert in your field.