Average Income of Estate Agents

in Qld it is about 40-50k as there are so many non-effective ones living off a retainer.

At the moment they are not earning much unless you are really good as the property market is in general pretty flat.

It is easy to earn over 100k though. The average commission charged to the vendor is about 2.5%. Their should be a 50/50 or 40/50 split between you and the principal.

on a $500,000 house approximate commission would be $12,500 plus GST. You may receive 50% of this if you are in a good position. Minus superannuation (9% soon to be 11%) and your income tax bracket. How many you sell depends on:
– You
– Your principal agent (exposure, credibility, training etc)
– The market you are working in
– Your knowledge of the market. Its not a job you can bluff, in depth knowledge of the market is a vital key
– I’m sure theres more factors also

Hey Tim,
It really depends on the agent. You will find 10% of agents make 90% of the income, as each owner wants to sell their home with the best agent.
I was a top 10 agent for my franchisor and to get number 1 position, the agent had to earn $800k plus. Saying  that there were agents in my office who didn't get off their backside who only got $40k or less. They didn't last that long.

Are you looking to become an agent?

To be pedantic the average income would be very low as the qualifications are very easy to get and a lot aren't active for the time they are registered.

More precise info here: http://www.abs.gov.au/ausstats/[email protected]/mf/8663.0/

The top few percent do take a lot of the spoils, regularly see 90/10, 95/5 or similar figures quoted in the training literature, yet to see that verified but it does make sense.

I believe the ballpark figures for numbers of agents are around 50k nationwide at the moment, down some 10k from a year ago! Was a headline about this recently. Turnover is always high, more so now.

If you have any sort of talent for networking, marketing, consistent effort then you should do ok or much better as the standards aren't that high generally.

The reputation of the industry is so low in the public's eyes that the really smart operators position themselves as far away as possible from the 'agent' title, think write a book, seminar presenter, columnist in magazines etc, smart idea.

Hi Tim

I don't think you can focus on averages. As others have alluded to – the good ones can do really well whilst the mediocre ones will struggle. I've seen both sides of the spectrum – and I wouldn't necessarily say it's all hard work and long hours that makes the good agents successful. There are other factors which I think Andrew mentioned that make up a good agent.

Cheers

Jamie

Hi Tim,

I was working as a real estate agent for 3 years. I was top 60 sales person withing a network of 500.
I started at 24 years: First year i was earning 60k – Including retainer and commision
Second and 3rd year i earning 90 and then 110k.

I was learnt in real estate was this;
1) The more you made the more expenses you had: My fuel bill every week was out of controll becasue i was listing so many houses i was also travelling alot in one area. Dry Cleaning for suits, phone bill etc
2) Overall i enjoyed it but where i work know i earn 80 a year + Car + phone for 40 hours a week in work. I love what i do more.
Even though i earn 20k less im able to save more becasue i have less expenses.

So some times in life i believe its not how much u earn but what u do with your money.

The thing i love about the job was this though i love the property market and im a investor. it has helped me gain knoweldge and know in the future when i do buy more property i will be able to read the play better.

So for me the lessons where far worth more to me then a wage

Hi Tim,

We have done personal coaching with Agents – after they became so curious about our Renovation formula… same with Tradies and even our Accountant…. Have you thought about becoming an Investor instead of an Agent?

Holly