Please enable javascript to play this video. Video transcript available at https://www.youtube.com/watch?v=Fh03puSzv7g. Real estate brokers and sales agents help clients buy, sell, and rent properties. Most real estate brokers and sales agents are self-employed. Although they often work
irregular hours, many are able to set their own schedules. Every state requires real estate brokers and agents to be licensed. Requirements vary by state but generally require candidates to be at least 18 years old, complete a number of hours of real estate or college courses, and pass a licensing exam. The median annual wage for real estate brokers was $62,010 in May 2021. The median annual wage for real estate sales agents was $48,340 in May 2021. Overall employment of real estate brokers and sales agents is projected to grow 5 percent from
2021 to 2031, about as fast as the average for all occupations. About 54,800 openings for real estate brokers and sales agents are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
Explore resources for employment and wages by state and area for real estate brokers and sales agents. Compare the job duties, education, job growth, and pay of real estate brokers and sales agents with similar occupations. Learn more about real estate brokers and sales agents by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.
Real estate brokers and sales agents help clients find a home that meets their needs. Real estate brokers and sales agents help clients buy, sell, and rent properties. Although brokers and agents do similar work, brokers are licensed to manage their own real estate businesses. Sales agents must work with a real estate broker. DutiesReal estate brokers and sales agents typically do the following:
Because of the complexity of buying or selling a residential or commercial property, people often seek help from real estate brokers and sales agents. Most real estate brokers and sales agents sell residential property. Others sell commercial property, and a small number sell industrial, agricultural, or other types of real estate. Brokers and agents can represent either the buyer or the seller in a transaction. Buyers’ brokers and agents meet with clients to understand what they are looking for in a property and how much they can afford. Sellers’ brokers and agents meet with clients to help them decide how much to ask for and to convince them that the agent or broker can find them a qualified buyer. Real estate brokers and sales agents must be knowledgeable about the real estate market in their area. To match properties to clients’ needs, they should be familiar with local communities, including knowing the crime information and the proximity to schools and shopping. Brokers and agents also must stay current on financing options; government programs; types of available mortgages; and real estate, zoning, and fair housing laws. The following are examples of types of real estate brokers and sales agents: Real estate brokers are licensed to manage their own businesses. As independent businesspeople, brokers often sell real estate owned by others. In addition to helping clients buy and sell properties, they may help rent or manage properties for a fee. Many operate a real estate office, handling business details and overseeing the work of sales agents. Real estate sales agents must work with a broker. Sales agents often work for brokers on a contract basis, earning a portion of the commission from each property they sell.
Real estate brokers and sales agents show properties to prospective buyers. Real estate brokers held about 123,100 jobs in 2021. The largest employers of real estate brokers were as follows:
Real estate sales agents held about 438,900 jobs in 2021. The largest employers of real estate sales agents were as follows:
Workplace size for real estate brokers and sales agents can range from a one-person business to a large firm with numerous branch offices. Many brokers have franchise agreements with national or regional real estate companies. Under this arrangement, the broker pays a fee to be affiliated with a widely known real estate organization. Some real estate brokers and sales agents work in a typical office environment, while others work out of their homes. In both cases, real estate workers spend much of their time away from their desks, showing properties to customers, traveling to see properties for sale, and meeting with prospective clients. Work SchedulesMany real estate brokers and sales agents work more than 40 hours per week. They often work evenings and weekends to accommodate clients’ schedules. Many brokers and sales agents spend a significant amount of time networking and attending community events to meet potential clients. Although they frequently work irregular hours, many can set their own schedules. Some brokers and sales agents work part time and may combine their real estate activities with other careers.
Real estate brokers and sales agents often find new clients through referrals. Real estate brokers and sales agents typically must complete a number of real estate courses and pass a licensing exam. EducationReal estate brokers and sales agents must complete some real estate courses to be eligible for licensure. Although most brokers and agents must take state-accredited prelicensing courses to become licensed, some states may waive this requirement if the candidate has taken college courses in real estate. As the real estate market becomes more competitive and complex, some employers are preferring to hire candidates with a college degree. Some community colleges, colleges, and universities offer courses in real estate. Some offer associate’s and bachelor’s degree programs in real estate, and many others offer certificate programs. Courses in finance, business administration, economics, and law also can be useful. Brokers intending to open their own company often take business courses, such as marketing and accounting. In addition to offering prelicensing courses, many real estate associations have courses and professional development programs for both beginners and experienced agents. These courses cover a variety of topics, such as real estate fundamentals, real estate law, and mortgage financing. Licenses, Certifications, and RegistrationsAll real estate brokers and sales agents must be licensed. Licensing requirements vary by state, but most have similar basic requirements: Candidates must:
Some states have additional requirements, such as passing a background check. Licenses typically are not transferable among states. However, some states have reciprocity agreements in that they will accept some requirements used to get a license in another state (such as course hours). To obtain a broker’s license, individuals generally need 1 to 3 years of experience as a licensed sales agent. They also must take additional formal training courses. In some states, a bachelor’s degree may be substituted in place of some experience or training requirements. State licenses typically must be renewed every 2 to 4 years. In most states, brokers and agents must complete continuing education courses to renew their license. To verify exact licensing requirements, prospective brokers and agents should contact the real estate licensing commission of the state in which they wish to work. Work Experience in a Related OccupationTo get a broker’s license in most states, real estate brokers must have experience working as a licensed real estate sales agent. Requirements vary by state, but most require 1 to 3 years of experience. TrainingReal estate sales agents improve their skills through practice and repetition. Training varies depending on the real estate company. Some provide formal training, while others allow their agents to enter the field immediately after obtaining their license.Insome states, agents must be sponsored by a broker while they are working to get their license. Because of the sales environment and the complexity of real estate deals, new agents may observe and work closely with more senior agents. Larger real estate companies may provide formal classroom training for new agents as a way to gain knowledge and experience, while others provide training to employees studying for their real estate licensing exam. AdvancementSales agents who earn their broker’s license may open their own offices. Important QualitiesBusiness skills. Because most brokers are self-employed, they must manage every aspect of their business. This task includes reaching out to prospective clients, handling their finances, and advertising their services. Interpersonal skills. Strong interpersonal skills are essential for real estate brokers and sales agents, because they spend much of their time interacting with clients and customers. To attract and keep clients, they must be pleasant, enthusiastic, and trustworthy. Organizational skills. Real estate brokers and sales agents must be able to work independently, managing their own time and organizing, planning, and prioritizing their work. Problem-solving skills. Real estate brokers and sales agents need to be able to quickly (sometimes immediately) address concerns clients or potential customers may have with a property. They also mediate negotiations between seller and buyer. Median annual wages, May 2021 The median annual wage for real estate brokers was $62,010 in May 2021. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $30,470, and the highest 10 percent earned more than $176,080. The median annual wage for real estate sales agents was $48,340 in May 2021. The lowest 10 percent earned less than $28,270, and the highest 10 percent earned more than $102,170. In May 2021, the median annual wages for real estate brokers in the top industries in which they worked were as follows:
In May 2021, the median annual wages for real estate sales agents in the top industries in which they worked were as follows:
Brokers and sales agents earn most of their income from commissions on sales. The commission varies by the type of property and its value. Commissions often are divided among the buying agent, selling agent, brokers, and firms. An agent’s income often depends on economic conditions, the agent’s individual motivation, and the types of property available. Income usually increases as agents become better and more experienced at sales. Earnings can be irregular, especially for beginners, and agents sometimes go weeks or months without a sale. Some agents become active in community organizations and local real estate organizations to broaden their contacts and increase their sales. Many real estate brokers and sales agents work more than 40 hours per week. They often work evenings and weekends to accommodate clients’ schedules. Many brokers and sales agents spend a significant amount of time networking and attending community events to meet potential clients. Although they frequently work irregular hours, many can set their own schedules. Some brokers and sales agents work part time and may combine their real estate activities with other careers. Percent change in employment, projected 2021-31 Overall employment of real estate brokers and sales agents is projected to grow 5 percent from 2021 to 2031, about as fast as the average for all occupations. About 54,800 openings for real estate brokers and sales agents are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire. EmploymentThere will be a continued demand for real estate brokers and sales agents because people turn to these workers when looking for a new home, relocating, or purchasing property for a business, among other reasons. Employment is projected to grow along with the real estate market. Tighter credit regulations and increasing real estate prices may force some people to continue renting as opposed to entering the housing market, which may result in fewer new jobs for real estate brokers and sales agents. The real estate market is highly sensitive to fluctuations in the economy, and projected employment of real estate brokers and agents varies accordingly. In periods of economic growth or stability, employment should grow to accommodate people looking to buy homes and commercial or retail space. Alternatively, during periods of declining economic activity or rising interest rates, the amount of work for brokers and agents often slows and employment may decline. Employment projections data for real estate brokers and sales agents, 2021-31
The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps for employment and wages by state and area. Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at
www.projectionscentral.com. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved. CareerOneStop includes hundreds of
occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a
salary info tool to search for wages by zip code. Similar Occupations About this sectionThis table shows a list of occupations with job duties that are similar to those of real estate brokers and sales agents.
How many houses do most realtors sell a year?So How Many Houses Does a Realtor Really Sell Each Year? Only a small number of realtors sell more than a hundred homes a year, and the majority sell anywhere between 2-10 homes a year. Further, first-year or those just starting as realtors usually sell the least number of homes.
How many houses do I need to sell to make 100k?How many houses does an agent have to sell to make $100,000 a year? If you are selling $100,000 houses and paying 40 percent of your commission to your broker you would have to sell over 50 houses a year to gross $100,000 a year. That is a lot of houses to sell, especially for a new agent.
How long do most real estate agents last?It's common knowledge that 87 percent of real estate agents will fail within the first five years. But it's not as simple as that. A combination of housing inventory challenges, anxiety around the country, and ever-changing effective lead generation strategies make the real estate industry more complex throughout 2021.
How many houses do top real estate agents sell?In one online real estate forum, Westminster, Maryland Realtor® Paul Hudson shared that at his firm, selling 15 homes per year is average. He personally sells around 20-25, and the top agent for the office does 40-50 — but with the help of a full-time assistant.
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How many sales does the average real estate agent make
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