How Much Does the Average Real Estate Salesperson Make in New York State?
According to careerexplorer.com, the average salary for a real estate agent in New York State is around $116,460 per year. Obtaining your real estate license is quite quick and easy. However, having a real estate license does not guarantee a high income. As a salesperson, you are essentially starting your own business. Whether you make above or below the average salary will be entirely up to you.
Earning Potential is Directly Proportional to Dedication
Having your own business has some distinct advantages like making your own schedule and not having to answer to a “boss.” Getting into real estate means you do not have to be at an office or at a desk from 9-5. It also means that you do not have a set salary or hourly wage. What you earn is directly proportional to the amount of work you put in. “Work” in the real estate industry means engaging with your community, cold calling and follow up calls with clients, market and listings research, showing houses, and much more. This business is not about selling house is about building relationships.
How much you make in real estate will also depend on if you plan to do real estate sales as a full-time job, part time job or hobby. You may also be interested in getting your license to become and investor, property manager or referral agent. The more you put into your business, the more you will get out of it.
Here at the Manfred School we frequently use the quote “If it is to be, it’s up to ME!” This quote perfectly explains the real estate industry. Time and passion will be required to earn a good living in real estate!
How are Real Estate Salespeople Paid?
Real Estate agents are paid a commission at the end of a sales transaction. The commission will be based on the sale price of the home. Commissions are negotiable between listing agents and their clients. The commission is split and negotiated between the buyer’s agent and the listing agent. For example, the seller can agree to pay a 6 percent commission divided between the listing agent and the buyer’s agent such that both receive 3 percent. The commission is then split between the broker and the agent according to their agreement.
The Importance of Having a Nest Egg
Your first year in real estate may be the most difficult year to make money. You will need to work hard to create a client base which will hopefully be a source of referrals for the years to come. The focus of your first year should be in creating a solid reputation as a real estate expert in your community.
As a real estate agent, you will only receive a commission check when you get a sale. Unlike working a regular 9-5 job, you will not have a regular paycheck. If you do get a sale, the home goes into contract and can take anywhere from 30 to 90 days to close. For these reasons, it is important to have a “nest egg,” or savings to cover your living expenses from the time you start your business to the time you receive your first commission check. You should plan to have several months’ worth of savings to cover your living expenses.
You should also account for some additional costs like real estate MLS fees, lock boxes, marketing signs, business cards and other forms of advertising. When looking for a broker, talk to them about what you will be expected to pay for out of pocket. Some brokers will help with startup cost while others offer a higher commission split.
The Most Successful Real Estate Salespeople Do This:
Real Estate is an ever-changing industry. Stay on top of new regulations and trends by prioritizing continued education. It is important to learn from people who have experience. The Manfred School allows you to “Learn Success From Success,” as many of our educators have achieved decades of success in the real estate industry. When you have questions about how to renew your license or changes to New York State license law, turn to The Manfred School. After all, we have been in the business for over 35 years!
Mentor ship can be important for new agents. Align yourself with a broker and other colleagues who can provide some advice along the way.
On the Fence? Get More Information Through Our “Look Before You Leap” Free Online Program:
Getting into a new industry is not a decision to take lightly. At the Manfred School we want our students to experience success. In fact, your success is our success! This link gives you access to more information about getting into the real estate industry:
You can also check out these youtube videos:
https://www.youtube.com/watch?v=TUOKfYlLP54 - How to Choose a Real Estate School?
https://www.youtube.com/watch?v=P9h5-R2pejM - How to Get Your Real Estate License in NYS?
Real Estate is an amazing industry for self-driven and passionate individuals looking to break free of a rigid 9-5 schedule and become their own boss! Take heed of the above advice and you can have a very lucrative career!
If you need additional help or have any questions, please reach out to us, call or text us at 518-489-1682, we are happy to help!