- As of September 2019, the average number of houses sold by a real estate agent per year was 701,000. If we take a look at last year’s report, we’ll see that there are obviously some rising real estate market trends at work.
- 1 How many houses do most agents sell per year?
- 2 Are real estate agents rich?
- 3 How old are most real estate agents?
- 4 Can real estate agents make millions?
- 5 How many houses do I need to sell to make 100k?
- 6 Can you make money your first year in real estate?
- 7 What is a luxury realtor?
- 8 What is the highest paid real estate agent?
- 9 Are real estate agents happy?
- 10 Are most realtors male or female?
- 11 What percentage of Realtors have college degrees?
- 12 Are Realtors becoming obsolete?
- 13 Why do Realtors get paid so much?
- 14 How can I make a million dollars in one house a year?
- 15 What is the Million Dollar Club?
- 16 How Many Homes Does a Realtor Usually Sell a Year?
- 17 Tallying a Realtor’s® yearly sales
- 18 Realtor® boards award members for units sold and sales volume
- 19 Sales per year is just the tip of the iceberg
- 20 Get the whole story before you hire an agent
- 21 How Many Houses do Real Estate Agents Sell?
- 22 How much do agents make?
- 23 How much do agents make on each house sale?
- 24 How many houses do agents usually sell?
- 25 How many houses does an agent have to sell to make $100,000 a year?
- 26 What are the expenses for agents?
- 27 How much work do you have to do to make a living?
- 28 Why good agents get better splits
- 29 Conclusion
- 30 How Many Homes Does the Average Realtor Sell in a Year? – Think Real State
- 31 Defining Terms
- 32 An Average Year
- 33 An Imperfect Formula
- 34 A Growing Industry
- 35 Is a Career in Real Estate Right for You?
- 36 Conclusion
- 37 How Many Houses Can a Realtor Sell in a Year?
- 38 83 Shocking Real Estate Statistics You Need To Know
- 39 Real Estate Agent Statistics
- 40 Looking for a Realtor? These Four States Have Plenty!
- 41 Real Estate Market Statistics
- 42 Real Estate BusinessIncome Statistics
- 43 Real Estate Video Marketing Statistics
- 44 Other Interesting Real Estate Marketing Statistics You Need to Know
- 45 Real Estate Brokerage Statistics
- 46 Home Selling Statistics
- 47 Who is Selling? A Home-Seller Statistical Snapshot
- 48 Home Buying Statistics
- 49 How Many Realtors in Each State?
- 50 Over To You
- 51 Quick Real Estate Statistics
- 52 Overview of the Real Estate Market
- 53 NAR Membership Statistics
- 54 REALTOR® Demographics
- 55 Statistics on REALTORS® and Technology
- 56 Home Buyer Statistics
- 57 Home Seller Statistics
- 58 For Sale By Owner (FSBO) Statistics
- 59 Other Recommended Sources for Data on Real Estate:
How many houses do most agents sell per year?
The average realtor sells around 12 homes in the United States each year. This may be a surprisingly low number, but the truth is, there are several factors that account for this figure. Despite this low number, more and more people are trying their hand in the real estate industry.
Are real estate agents rich?
According to a survey of 1,758 real estate professionals conducted by ActiveRain, 22 % of real estate agents earned less than $35,000 per year, and just 21% earned $100,000 or more. This is far from a “rich” profession.
How old are most real estate agents?
The typical REALTOR® is a 54-year-old white female who attended college and is a homeowner. 65% of all REALTORS® are female, and the median age of all REALTORS® is 52. Most REALTORS® worked 35 hours per week in 2020.
Can real estate agents make millions?
Star real estate agents in the state of California can make millions annually. These agents need to average at least $50 million in sales annually with an average commission of 2%. Agents practicing in areas like Los Angeles and Beverly Hills are more likely to earn higher sales.
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.
Can you make money your first year in real estate?
According to a 2018 survey by McKissock, the average first-year real estate agent earns approximately $15,000. This goes up to $38,141 between years one and three.
What is a luxury realtor?
A luxury real estate agent is someone who focuses on the niche of luxury properties, which are usually valued at $2-$40 million. Luxury real estate agents deal specifically with ultra-high-net-worth individuals. In order for someone to classify as a UHNWI, they must have assets that total $30 million or higher.
What is the highest paid real estate agent?
Top-Ranked US Real Estate Agent Ben Caballero Tops $2 Billion Volume – Again.
Are real estate agents happy?
In fact, the study says that 53% of agents are very happy with life compared to only 33% of Americans who could make the same claim. As for happiness in relation to their career, 84% of agents are happy working in real estate.
Are most realtors male or female?
Today, the majority of Realtors—63 percent—are women, according to the NAR 2017 Member Profile. The typical real estate agent is a 53-year-old white woman who attended college and is a homeowner, according to NAR’s 2017 overview of the real estate market. Within NAR, women make up: 56 percent of licensed brokers.
What percentage of Realtors have college degrees?
Thirty-one percent of all real estate agents have a bachelor’s degree, 31 percent have some college education, and 12 percent have an associate’s degree. Seventy-four percent of all REALTORS® said that real estate is their only occupation.
Are Realtors becoming obsolete?
The dealer or agents are never getting obsolete. Customers always need some authenticity of the significant price range products. The online real estate can perform a smooth online survey of the area. But when it comes to a buying option, the customers always prefer the right human touch.
Why do Realtors get paid so much?
They charge a lot because it takes work and money to market, it is hard to get licensed and become a real estate agent, they have to pay for dues and insurance and real estate agents usually have to split their commissions with their broker. The biggest reason a real estate agent gets paid so much is they are worth it!
How can I make a million dollars in one house a year?
To make one million dollars a year as a real estate agent you have to sell a lot of houses. However, how many houses you have to sell you depends on how expensive the houses you sell are. If your average sales price is one million dollars, you only have to sell 50 houses a year to make one million dollars a year.
What is the Million Dollar Club?
The Million Dollar Club is anything but a prestigious social organization for hardworking agents. Though not a real estate industry standard, it is a form of recognition for agents who’ve sold $1 million in property – residential or commercial – within a 12-month period.
How Many Homes Does a Realtor Usually Sell a Year?
In our minds, a world in which every real estate transaction is straightforward, certain, and rewarding is what we are working toward. As a result, we strive to maintain high standards of journalistic integrity in all of our postings. If you want to sell your house, you’ll need a superb real estate agent on your side. In order to locate one, you should be prepared with all of the necessary information, such as how many properties a Realtor® sells in a given year. With so many agents in your community claiming to be “top producers” or “number one agents,” it’s vital to understand what’s standard for the business and how your agent compares to their colleagues.
There are nearly 2 million active real estate licenses in the United States, with 1.3 million Realtors®, or real estate licensees who have gone the further mile to become certified members of the National Association of Realtors (NAR).
That is, however, the extreme case.
(Photo courtesy of Ahmad Omari / Unsplash)
Tallying a Realtor’s® yearly sales
According to the National Association of Realtors®, Realtors® completed an average of 12 home “transaction sides” in 2019. Always remember that transaction sides are not a precise indicator of the number of houses sold. When an agent assists a buyer or a seller in the closing of a deal, they are paid a transaction side. That implies that for every real estate transaction, there are two sides to the story: one asserted by the agent representing the seller, and another claimed by the agent representing the buyer.
The National Association of Realtors® (NAR) does not specify what proportion of “sides” in their calculation indicates a Realtor’s® median number of properties sold against homes purchased.
In actuality, this breakdown will differ from Realtor® to Realtor®, with some performing more listings than others, and some performing more buy side transactions than others.
Part-timers and hobbyists sell fewer homes
When compared to the high-flying agents on reality television shows, it may come as a surprise to find that Realtors® worked an average of 36 hours per week in 2019, according to the National Association of Realtors, and earned an average gross salary of $49,700. These numbers, on the other hand, take into consideration Realtors® who do not pursue real estate as a full-time profession. It’s likely that an agent selling less than four properties in a year is a hobbyist or part-timer who assists friends and family members from time to time as a side job.
They may consider real estate to be an after-work occupation, a side hustle, or something to do after retirement. Alternatively, they may be a full-time agent who is just finding their bearings on the water.
Top producers and teams do more business
However, there are a significant number of agents that sell far more properties than the average. Westminster, Maryland Realtor®Paul Hudson stated in an online real estate forum that the average number of properties sold by his business each year is 15 residences per year. He himself sells about 20-25 homes each year, while the top agent in the office sells 40-50 homes per year — but with the assistance of a full-time assistant. It is reasonable to assume that an agent who sells more than 50 houses per year, or who sells hundreds of properties per year, will have assistance in the shape of assistants and transaction coordinators, or in some circumstances, a full-blown team structure.
As a result, the high sales volume may be a sign of a seasoned agent who is now in charge of a team.
The team leader will most likely have a few of agents that will assist them with the majority of the day-to-day tasks.
Some agents sell fewer homes at a higher price point
When it comes to evaluating an agent’s performance, the number of sales — or, if you want to include buyer deals as well, the number of transaction sides — is just a portion of the equation. Realtors® are compensated on a commission basis. On average, listing agents receive 5.8 percent of the sale price, which they subsequently share with the buyer’s agent. Brokers on both sides of the transaction take a cut of the commission as well. However, the higher the value of the house, the more money a real estate agent will make on each transaction.
He claims that an agent who focuses on the higher-priced lakefront properties in his region will have fewer sales in many circumstances, but another agent will have to sell a large number of $100,000 homes in order to make the same amount of money.
Accordingly, I would suggest that the price point plays a significant role in deciding how many real purchases someone makes.
Realtor® boards award members for units sold and sales volume
If you want to have an idea of how different regions of the country determine what constitutes an outstanding amount of Realtor® sales each year, consider the following examples of how some Realtor® associations define “top producer” status. To be eligible for membership in the Sacramento Association of Realtors’ “Masters Club,” members must have a total sales volume of $5 million and 8 transactions, or a total transaction volume of 20 transactions. The Chicago Association of Realtors begins its awards program with agents who have sold more than $8 million in sales volume or who have sold 27-29 units each year, according to the Chicago Tribune.
Remember that “sales volume” is a measure of the total dollar amount of sales that an agent generates in a given calendar year.
HomeLight awards agents with the “Top Producer” badge if they rank in the top 5 percent of agents in terms of overall sales volume in their market region. (Photo courtesy of Grant Durr / Unsplash)
Sales per year is just the tip of the iceberg
The number of sales made by an agent in a given year is only one measure of their overall success. You can’t determine from that figure alone whether or not an agent is qualified to sell your house and whether or not they are the best fit for your needs and goals. When conducting your search, keep the following other performance indicators in mind:
Homes sold in your area
The knowledge of a real estate agent who routinely sells properties in your neighborhood might be quite beneficial in your particular market. The realtors will also serve as champions and specialists for the neighborhood, pointing out advantages such as nearby coffee shops, walking paths, and easy access to the grocery store to prospective buyers. In addition, when you go via HomeLight to meet with a real estate agent, you will be able to view the number of deals that they have completed in each year.
To narrow down your search even more, you can use the “Transactions Near You” tool to look for transactions in your immediate vicinity.
Years of experience
“Can you tell me how long an agent has been in business?” Thieme urges sellers to take this into consideration. “If someone has the capacity, expertise, and experience to survive the ups and downs of the market, you can tell by looking at their portfolio.” An experienced professional has figured out how to survive and assist sellers in both strong and weak markets, where it is more difficult to sell.” “Someone who has been in the business for a long time has figured out how to survive and assist sellers in both strong and weak markets, where it is more difficult to sell.”
Reviews and ratings
With HomeLight, you can immediately read client feedback on an agent’s previous transactions when you search for one using our agent finder. These are first-person stories of what it’s like to work with an agency and what their strengths are, as provided by the agents themselves. Notably, reviews and suggestions are divided into two groups on the HomeLight platform, with reviews appearing first and recommendations appearing second. In contrast to reviews, which are requested directly from HomeLight clients, recommendations are material that an individual brings in from external review sources such as their own personal website or social media accounts.
Average days on market
Days on market (DOM) is a metric that measures the amount of time that elapses between the time that a home is advertised and the time that it comes into contact with a buyer. If an agent’s average days on market (DOM) is lower than the national average, it’s a positive indication that theyprice property effectively to attract rapid offers and have a solid marketing plan in place for their listings from the start. According to the National Association of Realtors, the national average time on market for a house is roughly three weeks, however DOM patterns differ from city to city.
When it comes to average days on market for seller transactions, agents who have earned HomeLight’s “Sells Homes Fast” badge are in the top 5 percent of agents nationwide.
Types of properties sold
Your townhouse or condo listing agent may not be the ideal person to stage, advertise, and handle the HOA restrictions if he or she mostly sells single-family homes, and vice versa. HomeLight makes it simple to examine what sorts of homes an agent has previously sold and whether or not those properties are similar to the property you are trying to sell.
Area of expertise
For sellers who require a certain set of talents, you may study the “Specialties” part of a real estate agent’s HomeLight profile, where they can specify areas of experience like as luxury, investment, waterfront, or probateproperty sales.
Average sale-to-list price ratio
If you look at the sale-to-list price ratio, you can see what percentage of the asking price a house really sells for. It is 92 percent when a home is listed at $250,000 and sells at $230,000, which is the sale-to-list ratio. If a home sells for more than the asking price, the sale-to-list ratio will be more than 100 percent. The average sale-to-list ratio of a real estate agent reveals how accurate they are at pricing houses, as well as how much of a seller’s list price they are likely to be able to deliver.
Get the whole story before you hire an agent
When searching for the ideal real estate agent, knowing how many properties they typically sell in a given year can be a useful piece of information to have. However, it cannot provide you with a complete picture. A real estate agent’s expertise should be targeted to your unique location, property type, and price range in the best case scenario. We developed our agent-matching technology at HomeLight on the surfacing of those objective performance measures, and we believe it is a good fit. When you’re ready, we’re here to assist you in connecting with the most qualified agent for your specific requirements.
How Many Houses do Real Estate Agents Sell?
Mark Ferguson last updated this page on July 14, 2021. There are some real estate agents that sell hundreds of homes every year, and there are others who sell none. The number of properties sold by an agent is determined by their business strategy, their market, their motivation, their talent, and the quality of their team. I have sold more than 200 residences as an agent, yet I sold nearly none when I first started and almost none now. Initially, I battled, and now I am a broker and investor who is adamant about not wanting to sell my investments.
Depending on the market, you may only need to sell one property per year in costly markets or you may need to sell twenty houses per year in less expensive markets in order to earn enough to live on.
How much do agents make?
It depends on whatever source you consult and if a real estate agent works part-time or full-time on his or her average earnings for real estate agents. People see that real estate brokers make on average less than $40,000 per year and conclude that it is impossible to earn more than $100,000 per year in this industry. Because many real estate agents do not work full-time and because many agents do not put their hearts and souls into their business, the average salary estimates for real estate agents are distorted.
I’ve made more than $100,000 each year for the past six years, and I know some real estate salespeople that make far more than $100,000 per year. In order to make a good living as an agent, you do not need to work 80 hours per week or be a genius at mathematics.
How much do agents make on each house sale?
It is possible that real estate brokers may not make as much money on each transaction as you believe. When you are selling a property, it may seem absurd to pay someone a fee that might be as much as 6$ each transaction (all commissions are negotiable but HUD pays 6 percent to its agents). There are a couple of things to think about:
- The majority of the time, real estate agents will divide their commission with another agent. The selling agent does not receive the entire commission because the buyer’s agent is also compensated. Typically, real estate brokers do not keep the entire commission they get from the seller. They are required to place their license with a broker, who often gets a portion of the sale (ranging from a minor cost of $200 to 50 percent)
- Real estate agents are responsible for their own marketing, automobiles, insurance, and education, and they receive little, if any, incentives in return. Real estate agents are only compensated if a residence is sold.
If the commission splits are taken into account, an agent may make between $2,000 and $3,000 on a $100,000 home transaction.
How many houses do agents usually sell?
Houses in the average neighborhood cost roughly $225,000. If an agent sold average-priced properties, he or she would earn around $5,000 each property sold. If the average real estate agent earns $40,000 per year, it means they sell around 8 residences per year on average. If an agent is in a more costly market, he or she may only need to sell one property to make $40,000, however if they are in a cheaper area, they may only need to sell twenty properties to make the same amount.
How many houses does an agent have to sell to make $100,000 a year?
If you are selling $100,000 properties and paying 40 percent of your commission to your broker, you would have to sell more than 50 houses per year in order to earn $100,000 per year in gross sales. That is a significant number of properties to sell, particularly for a beginning agent. If you can raise your average price, you will be able to earn significantly more money. The following is a breakdown of different sales figures for various price points. The average selling price The Commission remained in place.
- Because of this, training is really vital, and learning from others will allow you to earn more money.
- As part of your training, you will learn how to list properties, which may result in two commission checks on one transaction!
- If you break down the numbers, you only need to sell 2 houses per month to make close to $100,000 a year gross with an average price of $200,000.
- Two of the agents on my team enrolled in online lessons via them and breezed through the examination.
What are the expenses for agents?
Even if you earn $100,000 per year in compensation, if you also incur $50,000 in costs, you aren’t truly earning $100,000 per year. This is why, as an agent, you must keep meticulous records of your expenditures and use caution when deciding how much to market. There are hundreds of firms attempting to extract money from real estate brokers in exchange for lead generation. Few of them provide any value, and the majority of them are not worth the money spent on them.
As a rookie agent, it is critical to concentrate on developing connections rather than paying for leads. Instead of ten to twenty sales, if you can keep your expenditures at $5,000 per year, one or two sales will come close to paying your expenses instead of several hundred.
How much work do you have to do to make a living?
Being a real estate agent requires dedication and hard effort. You must first obtain a license, then locate a broker, locate buyers and sellers, and finally show properties, list houses, and sell houses. Even while it may not take many hours to advertise a property and sell it, it takes a significant amount of time behind the scenes to discover the sellers and establish your business. Many individuals desire to get into real estate on a part-time basis, but it is quite difficult to do so successfully.
Having a team or a partner who can cover for you if you don’t have a flexible schedule is essential if you need to work part-time to make ends meet.
Many purchasers will be required to work and will only be able to see homes on weekends or after 5 or 6 p.m.
Why good agents get better splits
It is preferable to begin working with a broker who will offer you with the necessary training to ensure your success. Once you achieve success and begin to sell a large number of homes, you become a valuable asset to your broker. Many offices will be interested in hiring you since the more houses they sell, the more agents they can hire. That implies you may negotiate a smaller commission split while still making more money by selling the same number of properties that you did previously. Eventually, you will be able to shift your attention to listing development and the recruitment of additional agents to join your team who specialize in buyer representation.
My team is in charge of the rest of the company.
Real estate brokers may earn upwards of $100,000 per year if they work hard enough. In reality, many agents do this and earn significantly more as a result. There are no guarantees that money will fall into your lap, and the more training you have, the higher your chances of success. One of the agents on my team made $100,000 in his first year of working in the real estate industry.
How Many Homes Does the Average Realtor Sell in a Year? – Think Real State
Many individuals believe that being a realtor is a simple method to earn more money, or they opt to move into this profession full time because of the flexibility it affords. After all, pre-licensing instruction and a significant portion of the job itself may be completed on weekends, in your own time, and at your own convenience. But what is the financial reality of a real estate job, whether it is part-time or full-time? Every year in the United States, the typical realtor sells around 12 houses.
Despite this low amount, an increasing number of people are attempting to make a living in the real estate market.
A brief discussion of the reasons behind the high number of persons entering this business will be included.
If you have ever considered becoming one of the thousands of realtors that work across the United States and taking a risk on the market, or if you are simply inquisitive about the sector, continue reading this article.
Several crucial words must be understood before we can determine how many properties the typical realtor sells in a given year. Real estate agents and realtors are sometimes referred to as the same thing, although they are not the same thing in terms of technicality. A real estate agent is a professional who works on behalf of both sellers and purchasers, selling and promoting properties for the former and locating possible properties for the latter, respectively. When an agent has completed all of the required schooling and passed all of the requisite real estate examinations to receive their license, they may assist in the purchase and sale of real estate.
Those who are members of the National Association of Realtors (NRA) are all considered real estate agents.
An Average Year
Consequently, the average realtor in the United States sells 12 residences every year. a. It is necessary to examine the compensation structure of real estate agents, as well as a few key market indicators, in order to comprehend how I arrived at this amount.
Paid on Commission
Real estate brokers are nearly entirely compensated on the basis of the commissions received from the sales of the homes they represent. Therefore, no fixed pay or wage guarantee may be provided by the employer. A realtor may labor long hours for weeks on end yet receive no compensation for their efforts, resulting in a famously unsteady stream of revenue for the profession. The fact that agents work for brokers or agencies that collect a percentage of their commissions is also critical to understanding the process.
Consider the following scenario: a sales agent accepts a listing on a $200,000 home at a 6 percent commission rate (which is industry normal); if the house sells for the asking price, the fee will be $12,000.
The agent’s broker, the buyer’s agent, and the buyer’s agent’s broker will all get a portion of this commission, which will be divided according to a specified proportion.
Sales agents’ brokers will then take their share, which is typically a 60/40 split with the agent earning $3,600 and his or her brokerage $2,400 in commissions. The following would be the breakdown of the commission:
- Buyer’s Agent: $3,600
- Buyer’s Broker: $2,400
- Sales Agent: $3,600
- Sales Broker: $2,400
- Buyer’s Agent: $3,600
Currently, the typical property in the United States costs roughly $240,000, while the average compensation of a real estate salesperson is slightly over $50,000. As a result, if a real estate agent were selling average-priced properties and using the system of dividing commissions that I previously described, they would need to sell 12 homes in order to earn the median wage.
An Imperfect Formula
Trying to figure out how many properties the typical realtor sells in a given year is difficult because, although statistics may be valuable, they can also be misleading, especially in a data pool as diverse as the American housing market. As housing costs vary greatly from one location to the next, the data shown here may not accurately reflect the reality on the ground. If a real estate salesperson works in a wealthy region such as Los Angeles, for example, he or she may only need to sell two properties in a year in order to earn the median wage in the profession.
a This median wage is beneficial for acquiring a broad perspective of the sector, but it is significantly less useful when considering the number of hours and work required to be a successful real estate agent in the actual world.
A Growing Industry
One of the reasons that so many individuals want to try their hand at the real estate business is the simplicity with which they may get into the market and make money. While a college degree is not necessary, there are several alternative ways for obtaining certification in the industry. States such as Michigan only require 40 hours of study, whilst others such as California demand over 100 hours of education. Other possibilities include live online classrooms and on-demand courses, which allow you to learn at your own speed.
Obtaining your real estate license is also a very inexpensive endeavor.
It is true that you are not paid until the project is completed, but you are also free to dedicate as much or as little time as you like to your task.
If your broker becomes a member of the NAR, you, as an agent, will be able to join and take use of the services that this organization has made available to you.
While the initial expenditures of starting a real estate profession are relatively minimal, it is crucial to remember that most agents will need to be able to sustain themselves financially in the same manner that a new company owner would do. The majority of the time, a broker or agency will not pay any of your marketing or external charges. You will be required to cover the costs of signs, petrol, and any other fees incurred in order to complete a transaction on your own, while also paying a major amount of your commission to a third-party broker or salesperson.
New agents may potentially wind up losing money on a transaction if they do not have a plan and a budget.
Is a Career in Real Estate Right for You?
To be a successful real estate agent, you must possess the ability to complete a deal, just like you would in any other sales position. The real estate sector continues to prosper despite the increasing number of people entering the field. It is crucial to understand your local market as well as the amount of time and work that will be necessary in order to make ends meet in this profession.
Even though real estate is a fascinating area, relying on “average” figures and statistics on future revenue can be deceiving at times. Pursuing a career in real estate should be treated like any other major decision in one’s life, and it should be thoroughly considered and evaluated. Remember that what is considered typical in one place may be unreachable in another, so do your homework, create a budget, and get ready to dive into the world of real estate investing.
How Many Houses Can a Realtor Sell in a Year?
There is a fallacy of enormous proportions that has damaged the public’s confidence in real estate professionals. The popular belief is that all realtors are fabulously rich as a result of the hundreds of properties they sell each year. When the general public sees a realtor driving a fancy automobile, dressed impeccably, or dining at exclusive restaurants on a regular basis, they believe that money is pouring in for these professionals, and they are correct. The reality, on the other hand, is very different.
Home selling is a huge project that takes a lot of time and effort, and there is a limit to how many homes can be sold in a month by even the most experienced real estate agent.
So How Many Houses Does a Realtor Really Sell Each Year?
There are just a few of realtors that sell more than a hundred properties each year, and the vast majority of them sell between two and ten homes per year. In addition, first-year or new realtors often sell the smallest amount of houses on the market. The capacity to increase the number of transactions completed each year is dependent on a variety of elements, including availability, work ethics, ability, devotion, and team support. The reality of the issue is that in order to sell a home, one must put in the necessary effort.
The first-year realtor must actively build on leads, advertise oneself aggressively, and establish a strong customer base in order to be considered successful.
For the fortunate realtors who work in the high-end real estate market, even selling one home each year might result in a substantial income for them.
How Many Transactions For A First-Year Realtor?
The amount of transactions and money earned by first-year realtors varies enormously from one another. Part of the difficulty stems from the fact that existing data does not often indicate whether the realtor is employed part-time or full-time.
Although figures ranging from $30,000 to $300,000 are frequently cited, the average annual salary for first-year realtors appears to be in the neighborhood of $50,000. The reduced income is frequently due to a variety of factors, some of which are as follows:
- Working on a part-time basis
- Being unavailable on a consistent basis
- Insufficiency of effort
- A lack of work ethics
Despite the fact that some first-year realtors are pleased with a salary of $40,000 per year, those who work full time and are devoted to their profession can earn up to 2-3 times that amount. As with any career, the larger the amount of time you put in (and the more intelligently you do it), the bigger the financial benefits.
What Is The Commission For Real Estate Agents?
The commission paid to a realtor ranges from 4 percent to 8 percent of the sale price. While this may appear to be a large sum of money for the sale of a single house, many consumers are unaware that realtors have several expenditures that must be paid out of the commission, which include the following:
- The commission split between the listing realtor and the buyer’s agent is customary
- However, there is also a charge to be paid to the real estate broker who authorizes the realtor to work under his or her supervision. Depending on the contract, the broker charge might range from $200 to $2,000 per transaction. If the broker covers all of the costs associated with the transaction, including license fees, marketing, travel expenses, and house showing fees, the fee will, of course, be greater. In the majority of circumstances, the realtor will be responsible for the costs of marketing, education, insurance, preparing the home for showings, and any meals spent throughout the course of the transaction. Remember that even while a realtor may spend days or weeks with a potential seller, and spend an enormous amount of time and money doing so, if the house does not sell, the agent will not be compensated.
Suppose a home is sold for $200,000; after deducting the commission share and any other expenses, the relator may be left with $4,000-$6,000 in proceeds.
What is The Financial Potential for a First-Year Realtor?
The average home in the United States now sells for $250,000, with the agent earning approximately $5,000 per home sold. In order to make $50,000 per year, the agent must sell around 10 properties each year. If, on the other hand, the agent is involved in the sale of expensive homes that cost more than $750,000, he could easily earn $15,000 per home sold. Aside from that, he would easily make $60K per year if he sold just four homes per year at this price. However, if the agent wants to make $100,000 per year, they will need to sell dozens of homes each year in order to achieve that goal.
Many experienced realtors have been in the business for many years, and there is fierce competition to sell homes in this competitive market.
In addition to selling more homes, another method of increasing income is to sell expensive homes that cost more than a million dollars.
Register with HomesLand
The expenditures of being a realtor are many, and even if they earn $100,000 a year, their expenses may amount to anywhere between $20,000 and $40,000. As a result, it is critical to maintain track of all expenditures. One area in which to make a prudent investment is with a reputable real estate firm, because many do not deliver. Having established itself as the foremost real estate resource in North America, HomesLand has expanded its reach. You’ll find a complete directory of properties for sale around the country, as well as create legitimate leads.
When potential clients are looking at properties for sale, there is a good likelihood that you may be contacted.
83 Shocking Real Estate Statistics You Need To Know
In 2021, twenty percent of house purchasers were single women, compared to fewer than ten percent of home buyers who were males. Such real estate data are essential in comprehending the always changing real estate market and the business as a whole, and this particular statistic is no exception. There are 83 of the most fascinating real estate statistics from throughout the industry, which we’ve gathered from a variety of sources and compiled for you here—covering everything from market performance to agent demographics to marketing to teams to brokerages and more.
If you want to comprehend the trends, you’ll first need to know what the stats are telling you.
Real Estate Agent Statistics
- Among the states with the most active Realtors in the United States are California, Florida, Texas, and Arizona, with more than 40% of the total. The state of Florida has about 2 percent of the adult population that holds a valid real estate license. During the two-year period 2020-2021, the number of licensed real estate agents in Arizona increased by approximately 10%. It is estimated that there are more than 3 million licensed real estate agents in the United States at any given time. According to the National Association of Realtors® (NAR), there were 1.56 million members as of October 20, 2021. Women account for more than 65 percent of all active real estate agents. Across the United States, the median age of all realtors is 52 years old. The average Realtor has a bachelor’s or graduate degree, with 45 percent having finished their studies. Realtors who have been licensed for a year or less account for 20% of the total. Real estate licensees own their principal house in 82 percent of cases. A total of 37 percent of licensed Realtors possess at least one second home. Currently, there are more than 1,100 local Realtor associations around the United States.
The main takeaway is that the real estate business is expanding at an unprecedented rate. The real estate industry, led by clever, enterprising women, is positioned to continue on its current course for many more years to come.
Looking for a Realtor? These Four States Have Plenty!
- Real estate agents have 68 percent of all real estate licenses in the United States, with the remaining 3 percent held by brokers and associate brokers. The average number of years of experience among licensed real estate professionals is five years. It is estimated that there are around 120 million inhabited housing units in the United States (both by renters and owners).
The Bottom Line: It should come as no surprise that these very populous states in the United States have a large number of Realtors, but the quantity of real estate professionals in these states in comparison to the rest of the country is unexpected. As a Realtor, you should go where the business is occurring in order to find opportunities.
Real Estate Market Statistics
- It is estimated that there are around 120 million inhabited housing units in the United States (both by renters and owners). In 2021, 92 percent of houses sold in the United States will be sold with the use of an agent or a broker. By June 2021, the average listing price for a property in the United States has increased by more than 32 percent from March 2020 to $374,900. Since 1980, the median sales price of a home in the United States has climbed by 416 percent, according to the National Association of Realtors. In 2021, residences in the United States spent an average of 31 days on the market, the shortest average selling period in more than 15 years. Before signing a contract, the typical number of days available was nine, which was the lowest number in more than 15 years. At one time in 2021, interest rates were hovering at 2.68 percent (as a national median), which was the lowest they had ever been in history. Last year, Generation X overtook the Baby Boomers as the largest homebuying generation, accounting for approximately one out of every four homes sold in 2021. As of September 2021, the number of residences sold in 2021 (to date) has increased by about 10% over the previous year, reaching 6.29 million.
What You Should Know in the End: In 2021, the real estate market in the United States was ablaze with activity. An unprecedented amount of demand, soaring prices, a scarcity of available inventory, and historically low loan rates have combined to produce an unparalleled seller’s market. Will they be able to continue? Only time will tell if this is true.
Real Estate BusinessIncome Statistics
- Realtors often earn more than 95 percent of their annual revenue from commissions on real estate transactions. In 2021, the typical gross commission revenue for Realtors working 19 to 40 hours per week will be $43,300, a decrease from the previous year’s figure of $46,000 or more. In the United States, the typical gross commission income for Realtors working 40 to 60 hours per week is $87,550. It is estimated that Realtors who work more than 60 hours per week earn a typical gross commission income of $145.347. In the United States, real estate agents with 15 years of experience (or more) earn a median gross income of $75,000
- Realtors with 20 years of experience (or more) earn a median gross salary of 101,633 dollars per year. A licensed real estate agent typically completes 10 deals per year on average
- 71 percent of Realtors concentrate in residential real estate. Realtors who make $100,000 or more in gross commission revenue are more than twice as likely as those who earn less to employ advanced technological tools such as a customer relationship management system (CRM).
The Bottom Line: In the real estate market, there is a direct relationship between the amount of time you put in and the amount of money you make. In order to become a top producer, one must put in the necessary effort.
- Realtors utilize Facebook for commercial purposes in 74 percent of their cases. LinkedIn is used for commercial reasons by 56 percent of real estate agents. The usage of social media has led to the completion of at least one transaction every year, according to more than 30% of realtors who use it. America’s average daily time spent on Facebook and Facebook-connected services has increased to more than an hour
- And Since 2020, the average amount of time spent watching Facebook Live has increased by fourfold. The typical Facebook user in the United States clicks on eight advertisements each month, with that figure increasing to ten advertisements per month for women. The Closelist conducted a poll and found that 60 percent of agents consider social media to be more significant than a website.
The Bottom Line: There has never been a period when being active on social media was more critical. Using a real estate marketing business such as Artur’in to automate and streamline your social media content and maintenance might be beneficial if you require assistance with your social media.
Real Estate Video Marketing Statistics
- When it comes to marketing their listings, over 80 percent of active listing agents employ drone photography and videography. Commercial drone shootings for real estate are now accounting for more than one out of every five commercial drone shoots. 73 percent of homeowners think they are more inclined to market their property with a Realtor that uses video to sell it. Home sales that include drone photography as part of their marketing strategy sell on average 68 percent faster than those that do not. Approximately 10 percent of recent sellers said that their real estate agents successfully used video to advertise their home. According to a poll conducted by The Close, 78 percent of real estate professionals believe that video is vital in helping agents stand out on social media.
The Bottom Line: If video isn’t a part of your real estate marketing plan, you’re throwing away money on a regular basis. If you’re not sure where to begin or how to get started, firms such as Animotomake video marketing simple and something you can complete in as little as a few of minutes every day, right from your smartphone.
Other Interesting Real Estate Marketing Statistics You Need to Know
- In 2021, 68 percent of house sellers indicated that they found their agent from a recommendation from a friend or family member. Recurring clients and referrals accounted about 34% of a typical Realtor’s commission revenue in 2021. Approximately 70% of licensed real estate professionals maintain a website
- The “About Us” page of a real estate agent’s website is, on average, the third most visited page on the site. 69 percent of recent home sellers who responded to the study indicated they would be happy to submit a review for their sales agent if asked to do so. Prospective home sellers ranked “professional reputation” as the most significant characteristic they search for in a real estate agent over all other characteristics when questioned. A little more than 1 percent of homebuyers said that they found their new house through newspaper advertising.
The Bottom Line: If you have to make decisions about how you spend your marketing time, invest it developing material that will not only attract new customers, but will help nurture your existing connections as well.
Real Estate Brokerage Statistics
- It is estimated that more than 107,000 brokerage firms are now functioning in the United States. Approximately one-third of all real estate licenses in the United States are held by brokers and associate brokers. In most cases, a real estate agent will work at the same agency for five years. The average number of deals closed by real estate brokers and associate brokers per year is 13 transactions. 45 percent of brokers say that “keeping up with technology” is the most difficult difficulty their agents confront
- 45 percent of agents agree.
The Bottom Line: In 2021, competition in the real estate brokerage industry will be fierce! For those considering a career move in the real estate industry, our popular guide to the finest real estate businesses to work for will help you find the right match. Interested in learning more?
Home Selling Statistics
- In 2021, it is expected that more than 5.64 million existing residences would be sold. In 2021, it is expected that more than 800,000 newly built residences would be sold. It was fewer than ten days on average in 2021 for a home to become available on the market in the United States of America. For Sale By Owner (FSBO) homes typically sold for 17 percent less than comparable homes listed through a Realtor. Generally speaking, properties offered for sale on a Thursday sold for more money (and sold faster) than homes advertised on any other day of the week.
Who is Selling? A Home-Seller Statistical Snapshot
- In the United States, the average age of a house seller is 45 years old. In the average case, a house seller has been in their home for eight years. The average size of a home sold in the United States in the last year was 1,900 square feet. The typical house seller obtained a mortgage to purchase their property. In 2021, the average house seller will receive 30 percent of their purchase price in the form of earnings from a home sale.
Summary: Home values have increased considerably in the last 24 months, and sellers are realizing greater amounts of equity than they had in the recent past.
Home Buying Statistics
- In 2021, single females accounted for more than 20% of homebuyers. Homebuyers in 2021 who were single males were less than 10% of the total. House purchases by first-time homeowners will account for 34% of all home purchases in 2021. In the United States, the median age of a first-time home buyer in 2021 will be 33 years old
- In the United States, the median age of a repeat home buyer in 2021 will be 56 years old
- According to the Census Bureau, the typical household income for a first-time home buyer in the United States was $86,500 in 2021. Repeat homebuyers in the United States earned a median family income of $112,500 in 2021. Multi-generational homes were acquired by 11 percent of home purchasers in 2021, primarily owing to children over the age of 18 returning home, cost-saving measures, or to care for their aging parents. Active-duty military personnel accounted for 3 percent of house purchasers in 2021. Home sales in 2021 exceeded the asking price by 29 percent, with the average sale price exceeding 100 percent of the asking price. Only 19 percent of buyers claim that their first step in the home-buying process was to contact a real estate agent, whereas 41 percent of buyers report that their first step was to look at properties on the internet. In 2021, the average buyer toured eight properties before making a decision to buy. A first-time house buyer typically finance 93 percent of the purchase price of their property in 2021, compared to recurrent home purchasers who finance 83 percent of the purchase price. For a portion or all of their downpayment, 28 percent of first-time home purchasers received a gift or loan from family or friends
- And Sixty percent of Realtors believe that in 2021, a shortage of inventory will be the most crucial barrier preventing potential customers from completing a purchase, surpassing the previous year’s “finding the appropriate house in the correct price range.” Almost 60% of first-time homeowners under the age of 29 do not anticipate to live in their house for more than 10 years before selling.
In 2021, single females accounted for more than 20% of all house purchasers. In 2021, single males accounted for less than 10% of all homebuyers. In 2021, first-time homeowners will account for 34% of all house purchases. In the United States, the median age of a first-time home buyer in 2021 was 33 years old. In the United States, the median age of a repeat house buyer in 2021 will be 56; First-time home buyers in the United States will have a median household income of $86,500 in 2021. Recurring homebuyers in the United States made a median household income of $112,500 in 2021.
Active-duty military personnel accounted for 3% of house purchasers in 2021.
Prior to making a purchase in 2021, the average buyer toured eight different properties.
Sixty percent of Realtors believe that lack of inventory will be the most crucial barrier preventing potential customers from completing a purchase in 2021, surpassing the previous year’s “finding the appropriate house in the correct price range.” Almost 60% of first-time homeowners under the age of 29 do not anticipate to live in their property for more than 10 years before selling it.
How Many Realtors in Each State?
|State||Number of Realtors|
|District of Columbia||3,130|
|U.S. Virgin Islands||365|
Over To You
Would you want to hear about a real estate statistic that we didn’t cover? If so, please let us know. Please share your thoughts with us in the comments section. Let’s continue the discourse in this manner! SOURCES: Association of Real Estate License Law Officials (ARELLO),National Association of Realtors,Realtor.com,Real Estate Agent U,Contactually,Real Estate Express,Hootsuite,Carrot,RIS Media,U.S. Association of Unmanned Aerial Videographers,Autel Robotics,Association of Real Estate License Law Officials (ARELLO),Association of Real Estate License Law Officials (ARELLO),Association of Real Estate License Law Officials (ARELLO), In addition to a website, 60 percent of real estate professionals believe social media is more important than a website.
Quick Real Estate Statistics
Trying to come up with some fast data for a sales meeting or a customer brochure? Do you need a fast fact to support your argument? Member Support has created a list of some of the most often requested statistics so that you can find them quickly and easily. Find the information you require, as well as the source of that information, at a single glance.
Overview of the Real Estate Market
- According to data from the National Association of REALTORS®, 5.64 million existing houses were sold in the United States in 2020. According to the United States Census Bureau, 822,000 newly built residences will be sold in 2020. In the United States, according to the Association of Real Estate License Law Officials (ARELLO), there are more than 3 million active real estate licenses
- According to the Real Estate and Rental and Leasing: Summary Statistics for the United States, States, and Selected Geographies: 2017 report, there are 106,548 real estate brokerage businesses in operation in the United States. In 2018, there were 5.9 million commercial buildings in the United States, with a total floor area of 97.0 billion square feet, according to preliminary figures from the U.S. Energy Information Administration’s Commercial Buildings Energy Consumption Survey (CBECS). According to the 2018 American Community Survey, there are roughly 119.7 million inhabited housing units in the United States. It is estimated that the average house seller has lived in their home for eight years according to the 2021 Profile of Home Buyers and Sellers. The average residence has 1,900 square feet of living space. The average age of a homeowner is 45 years old. According to the Federal Reserve’s Survey of Consumer Finances, 64.9 percent of households owned their principal residence as of 2019.
NAR Membership Statistics
As of October 2021, the total number of members was 1,564,547. As of 2020, there will be 1,108 local organizations in the United States. Monthly Membership Report and National Association of Realtors Membership Statistics, 1908-present
- REALTORS® are licensed as sales agents in 68 percent of cases, broker licenses in 20 percent of cases, and broker associate licenses in 13 percent. It is estimated that the average REALTOR® is a 54-year-old white female who went to college and owns a home. Females account for 65 percent of all REALTORS®, with the median age of all REALTORS® being 52 years old. The average amount of real estate experience held by all REALTORS® is 8 years. The average length of service at the current firm (all REALTORS®) is 5 years. In 2020, the majority of REALTORS® worked 35 hours per week. The median gross income of REALTORS® in 2020 was $43,330, a reduction from the previous year’s figure of $49,700. In 2020, the median number of transaction sides will be:
- There are ten residential sides for all REALTORS®. There are thirteen residential sides for residential specialist broker/broker associates only. There are nine residential sidings for real estate agents in general. There are five residential sidings and four commercial sidings for real estate agents in general. There are four commercial sidings and ten residential sides for real estate agents in general.
- A few years of college: 29 percent
- A bachelor’s degree: 32 percent Graduate degree and above: 13 percent
- Associate degree: 13 percent
- Some graduate school: 6 percent
- High-school graduate: 8 percent
- Bachelor’s degree and above: 13 percent
Member Profile of the National Association of REALTORS® for the year 2021.
Statistics on REALTORS® and Technology
- REALTORS® prefer to contact with their clients via text messaging, with 93 percent stating that this is their preferred method of communication. Ninety percent of respondents preferred to interact by telephone, and 89 percent preferred to connect via e-mail. Seventy percent of brokers and broker associates, as well as six-nine percent of sales agents, have a website. A total of 81 percent of members have their own listings on their website, while 69 percent have information on buying and selling real estate and 66 percent have a link to the website of their company. 74 percent of REALTORS® use Facebook for business purposes, and 56 percent use LinkedIn for business purposes. Approximately 20% of all members derive 1-5 percent of their revenue from social media, with 10% obtaining 6-10 percent. In their real estate firm or office, 36 percent of members employ a professional to utilize drones, 14 percent have a drone user in their workplace, and just 6 percent use drones for personal usage. Drones are not used by 21% of people.
2021 Member Profile is the source of this information.
Home Buyer Statistics
- First-time buyers accounted for 34% of all purchases
- The median age of first-time buyers was 33
- The median age of repeat purchasers was 56
- First-time buyers have an average household income of $86,500, while repeat purchasers have an average household income of $112,500.
The average home acquired was 1,900 square feet in size, was constructed in 1993, and had three bedrooms and two bathrooms. The average property sold for $250,000. For homebuyers who took out a mortgage, the average amount borrowed was 87 percent of the purchase price. In 2011, 87 percent of homebuyers used the services of a real estate agent or broker, a figure that has progressively climbed since 2001 when just 69 percent did so. Buyers who would employ their agency again or who would refer their agent to others include the following: seventy-five percent The following are the locations where purchasers located the house they purchased:
- Internet: 51 percent
- Real estate agent: 28 percent
- And other sources: Yard sign/open home sign: 4% of the population
- 6-percent of people say they have a friend, family, or neighbor. 6 percent goes to the home builder or their agent. 3 percent came directly from vendors or knew the sellers
- 3 percent came from other sources. 1 percent of the total cost of a print newspaper advertisement
Home Buyers and Sellers in the United States in 2021, according to the National Association of Realtors®
Home Seller Statistics
- When it came to home selling in 2020, the average seller was 56 years old, with a household income of $112,300 dollars, and had been in their home for 8 years. When it came to selling their house, 90 percent of sellers used the assistance of a real estate agent. Recent sellers usually sold their houses for 100 percent of the asking price, with 35 percent reporting that they had to lower the asking price at least once throughout the process. The average home sold after being on the market for one week. Sellers who worked with a real estate agent were referred to them by friends or family in 68 percent of cases, and 53 percent returned to the agent who helped them purchase or sell their prior house. Sellers who are certain that they will hire the same agency again: 90 percent
Home Buyers and Sellers in the United States in 2021, according to the National Association of Realtors®
For Sale By Owner (FSBO) Statistics
- In 2020, for-sale-by-owner (FSBO) transactions will account for 7 percent of all home sales. For example, the average FSBO home sold for $260,000, compared to $318,000 for agent-assisted home sales
- FSBO marketing methods used to market the home included:
- None: Those who did not actively market their home included 34 percent
- Yard signs included 26 percent
- Friends, relatives, and neighbors included 23 percent
- MLS websites included 18 percent
- Social networking websites (such as Facebook, Twitter, and others) included 14 percent
- An open house included 14 percent
- Online classified advertisements included 5 percent
- Video included 4 percent
- Virtual tours included 3 percent
- And for-sale-by-owner websites included 2 percent. 1 percent for print newspaper advertisements
- 1 percent for direct mail (flyers, postcards, etc.)
- 1 percent for television advertising
- 1 percent for radio advertising
- Making repairs to the house in preparation for sale: 17 percent
- Determining an appropriate price: 14 percent
- Understanding and completing the necessary paperwork: 11 percent
- Selling within the time frame set forth in the contract: 5 percent
- The ability to dedicate appropriate amounts of time to all parts of the sale: 5 percent
- Attracting potential buyers accounts for 3 percent of all sales
- Assisting buyers in obtaining finance accounts for 3 percent of total sales
Home Buyers and Sellers in the United States in 2021, according to the National Association of Realtors®
Other Recommended Sources for Data on Real Estate:
Providing insight into NAR Research’s studies and analyzing how various economic factors impact the real estate market, the Economists’ Outlook blog gives insight into the market. This report by the National Association of Realtors (NAR) analyses the real estate markets in each state and assesses their contribution to the overall economy of that state. TheResearchStatisticssection of nar.realtor contains links to recent surveys and publications published by the National Association of Realtors.
The State of the Nation’s Housing, published annually by the Joint Center for Housing Studies at Harvard University, is a comprehensive analysis of the housing market in the United States, including information on demographic changes and economic circumstances.