If you’re in sales and thinking about a career in real estate, this property blog is for you. Earning potential is good when the property market is booming – i.e., property sales prices are high, so how much do real estate sales agents make? We researched the average earnings of sales agents in real estate in the USA, UK, Australia, and New Zealand.
At the lower end of the average salary band, the amount earned by sales agents aligns with the average income for each country, with the take-home pay average for people who aren’t motivated, well-connected, or good negotiators. However, sales careers in real estate can lead to spectacular earnings for competent salespeople.
Estate Agents Average Incomes
Here’s what we found real estate sales agents earn on average:
The career experts at the US Bureau of Labor Statistics report the median annual income for USA-based real estate sales agents at $49,040 per year. The best-paid real estate agents earn upwards of $112,410 annually and the lowest-paid earn below $25,100 annually.
Most real estate agents are self-employed or independent contractors with their own LLC or S Corporation or as a sole proprietorship. Their earnings are reported as part of their income, but expenses are deducted for tax purposes.
States have varying requirements for becoming a real estate agent in the USA, getting licensed, and maintaining licensure. Real estate agents in the United States do not typically need to invest in a four-year college or university degree program to succeed. Still, they need to complete state-accredited, industry-specific real estate pre-licensing courses. They also need to pass a licensing exam to work in the state. In many states, they must also complete ongoing continuing education.
Aside from the expenses associated with education and training, USA-based real estate agents should expect to pay:
- Brokerage fees
- Membership fees for the Local Board of Realtors
- Fees to access the local multiple listing service (MLS)
In Australia, the average weekly pay for real estate representatives and real estate sales agents at writing this article is AUD 1,161 (USD 826.98). At that rate, a professional who works all 52 weeks would earn AUD 62,372 (USD 43,003) per year. However, most workers in Australia have at least a couple of weeks annual leave (vacation), which, if they are self-employed, will not be earning an income during that time.
Requirements for real estate sales agents and real estate sales representatives vary by State. It’s typical for aspiring real estate sales agents and representatives to obtain a formal qualification. Opportunities exist to take real estate courses through Australia’s Technical and further education (TAFE) system; a few possibilities are as follows:
- Certificate III Property Services
- Certificate IV Property Services
- Diploma Property Services (agency management)
- Bachelor’s Degree Property and Real Estate
After acquiring training, an aspiring real estate sales agent will typically need to register with the relevant state authority and obtain a license to practice.
The Ministry of Business, Innovation and Employment reports that real estate agents in New Zealand earn an average of NZD$84,500 (about $57,626.46 US dollars) annually.
According to the New Zealand Government, Real Estate Authority, real estate agents in New Zealand must have three years worth of work experience. They must also either earn a property degree or obtain a standard qualification. Furthermore, they must become licensed.
In the UK, estate agents typically earn anywhere from £15,000 – £40,000 per year ($20,013.75 – $53,370.00), according to the experts at the National Careers Service.
There are multiple ways to get started in real estate sales in the UK, including academic qualifications. Plus, you can apply for an apprenticeship with an agency. To qualify for an apprenticeship, candidates typically need to hold General Certificates of Secondary Education (GCSEs) in subjects such as English and maths.
There will always be a role for sales agents even with advances in real estate technology that include virtual tours and digital signatures. Not all homeowners will want to go through the sales transaction process online. Viewing property listings and marketing can be done online; however, real estate agents provide an ear for the negotiation process and relay any concerns or requirements sellers, and buyers have as part of the deal.
A career in real estate sales is doable and attractive, particularly if you’re like many PropertyTalk visitors and love homes.