When you’re contemplating a career change, you’ll naturally have a lot of questions. The first question is whether or not you’ll find your new career path fulfilling. The second question is what credentials are necessary to pursue a career in that field. The third question, which is undoubtedly just as important, is how much money you’ll make in your new career.
If you’re considering a career in real estate, discover what you need to know about the average part-time real estate agent salary. Then, figure out how to maximize your chances of reaching the higher end of the spectrum.
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What Is the Difference Between a Part-Time and a Full-Time Real Estate Agent?
It’s easy to assume the difference between part-time and full-time jobs based on weekly hours. Typically, anything less than 40 hours a week is considered a part-time job. Any job consisting of 40 or more hours per week is regarded as a full-time job. However, real estate agents don’t typically fit into the same mold as everyday office workers.
A part-time real estate agent could technically work anywhere from one hour a week to 39 hours a week. When considering a part-time career in real estate and looking at average salaries, it’s essential to note that the hours the real estate agent worked aren’t factored into those averages. Real estate agents who work only 10 hours a month are lumped in with real estate agents who dutifully work 35 hours a week.
What Is the Average Part-time Real Estate Agent Salary?
The national average part-time real estate agent salary is $58,145 a year or $28 an hour. This could be more or less than what you’ll make as a part-time real estate agent. You’ll need to consider a variety of factors if you’re trying to calculate what your average salary would be.
There are a wealth of variables in play:
Real estate agents don’t work in the same “on the clock” and “off the clock” fashion as most other jobs. Real estate agents aren’t paid an hourly amount of the work they do. Their work is based on commission.
They can work as many or as few hours as they’d like, and the amount they choose to work combined with the number of deals they successfully complete is averaged into an hourly salary.
Two real estate agents could be making $50,000 a year, but one had to work many more hours than the other in order to achieve that salary. If one worked 60 hours a week for that same salary where another worked 30 hours a week, these agents would likely have very different opinions on whether or not their salary was reasonable.
Salary will also vary upon the average property values of an area. In homes where the average home value is $250,000, real estate agents will make half as much as they would in areas where the average property value is $500,000. This is about 25% as much when the average home in an area sells for $1,000,000.
Real estate agents that sell the most valuable properties may choose to work less, as a single commission will take them much further.
Where Do Part-Time Agents Make the Most Money?
The average part-time real estate agent salary is higher in the major cities of New York. Before you start looking for a real estate agent to help you move there, consider the circumstances. These cities are often very competitive real estate markets, and most agents are eager to land positions with real estate firms that serve those areas. Jobs are difficult to come by.
Let’s take California, for example. Although the averages are higher in places like Sunnyvale, San Mateo, Santa Cruz, and Santa Rosa, similar averages are potentially attainable in any market. It all depends on your strategy, expertise, and the type of properties a real estate agent sells.
Finding the Upper End of the Average Part-Time Real Estate Salary
Although it seems like going full-time is the obvious solution to making more money in the real estate industry, it’s important to note that it isn’t the only solution. You don’t necessarily need to work harder when working smarter is always an option. Changing your approach and maximizing your productivity can help you accomplish more in the same amount of time.
Network More
Networking as a real estate agent is simpler than it seems. Everyone needs a place to live, even if they don’t need one right now. Many people work in or around other people’s homes by providing services. Every one of those people you meet is a potential “in” to a new client.
Leave your cards everywhere. Every plumber, landscaper, electrician, appraiser, painter, flooring specialist, roof repair expert, mortgage banker, housekeeping service worker, and garage door installation specialist you meet should get your card.
These individuals are going to deal with people who live in a home they may want to sell someday. Make meaningful connections with these people. If they’re great at what they do, take a few cards. If you advocate for them, they’ll advocate for you.
Boost Your Negotiating Skills
Negotiating is tricky. When you negotiate, you need to consider the needs of everyone involved and create a scenario where everyone feels satisfied with the outcome.
Your commission as a real estate agent largely depends on the final price of the property you’re helping your client sell or buy. Your ability to negotiate these deals will help you find your financial footing, but there’s a fine balance.
You can’t price a property so high that it prohibits buyers from wanting to purchase that property, and you can’t talk a selling agent down so low that no one, including the property seller, is making a satisfactory amount from the sale.
Continue To Learn
Your real estate certification is only the first step in a series of steps that will help you accomplish your goals in real estate. The market is dynamic; trends come and go with time.
Every city is different, and so are the people who live in those cities. Learning goes far beyond the bare minimum for industry qualifications. Lifelong learning is crucial for success in any industry or profession.
Harris Real Estate University offers coaching programs for real estate agents who are actively driven to seek greater success in the real estate industry. We provide one on one coaching sessions to agents seeking to accomplish specific goals.
Our massive learning library teaches market-tested strategies and proven techniques agents can use to maximize their success in any market.
Sources:
How to Network with Powerful People | Harvard Business Review
The Importance of Lifelong Learning has been Increasing | ScienceDirect
How Much Real Estate Brokers And Real Estate Agents Earn In Every State | Forbes
