Average Realtor Commission 2016 – How Much Real Estate Agents Make

Commission is the fee that a realtor charges for selling a house. It can vary from agent to agent and state to state. However the typical percentage of commission that most agents take is 2-5-6%.

The variation in the percentage is because of the experience of an agent. Agents with more experience earn more than the new ones.

This article will give you a general detail about the average realtor commission 2016.

How Much Does a Real Estate Agent Make?

The major part of the income of a real estate agent’s income comes from the commission. This is the reason why you see most the agents fighting to get as much commission as possible. It is highly unlikely for two agents to make same commission on a house with same price.

The example I am going to give you will make it even easier to understand.

When an agent is trying to sell a house whose price is $350,000 with 5% commission on it. He will make $17,500 out of - $7000 more than the agent who works for 3% commission.

However, this whole amount does not go to his own wallet. There are different factors that determine the average realtor commission 2016:

1. Commission is split between buyer’s agent and seller’s agent
2. The seller’s agent’s commission is further divided between him and the company he works for. Usually the ratio is 50-50
3. After all the splits and other minor taxes, the agent usually gets only 1.5% of the total commission.

However, the amount of average realtor commission 2016 is $46,000. It is based on the salaries of agents with different experience ranges, varying from beginner to pro level..

How hard is it to be a real estate agent – A guideline for beginners

Being a successful professional is not easy. You will need to put a lot of effort, determination and hard work in your profession and same is the case with being a realtor. In case you are wondering how hard is it to be a real estate agent. Remember one thing, no good comes at a cheaper price.

Being a realtor is not impossible but it is not easy as well. You will need to go through a complete process in order to succeed.

Here are some of the few guidelines that will help you determine how hard is it to be a real estate agent:

Rowena Patton

Five problems that a real estate agent faces

1. The first step towards the journey of being a realtor is getting the license. The time period of getting license varies in different states. Some take a few weeks and some take over a few months to complete the process.
2. You will need to have some money in order to take the pre-license classes. The cost of these classes varies between $80-$100.
3. Being a real estate agent means you are going to meet new people almost every day. So make sure you are not shy and have a friendly attitude towards your clients.
4. The first few months are very hard, there might be no clients at all and you might have to kill your free time by doing a side job.
5. Being a realtor asks you to have a vast network. The more people know you, the more clients you are likely to make which is necessary for the growth of your business.

These are some of the most common points that I tell to the beginners who come to me asking how hard is it being a real estate agent. However, if you are persistent enough in your approach and take your opportunities, it is most likely that you will succeed.