From helping private sellers find potential buyers to securing the best property’s sale price, real estate agents play a crucial role in the success of any property transaction. But, how much does a real estate agent make?
If you’re thinking about becoming a real estate agent, this question is going to cross your mind. On average, a real estate agent in Australia has a salary of $75,000 annually. Most have an hourly rate of $38.00 per hour, which is above the minimum wage.
For entry-level agents, you can earn up to $55,000 a year. The most experienced agents can go above $95,000.
However, there’s more to that. In this blog, we’ll dive into the world of real estate agents. We will discuss the average salary, commission structures, and what factors affect the earnings of a real estate agent.
The average salary of real estate agents
The average salary for real estate agents in Australia is difficult to determine as it can vary greatly depending on factors such as experience, location, market conditions, and the commission structure of the company they work for.
However, based on industry reports, the average salary for real estate agents in Australia ranges from $50,000 to $80,000 per year.
Many real estate agents work on a commission-based structure, so their income may be more variable and depend on their success in selling or leasing properties.
Real estate agent commission rates
The amount of commission a real estate agent earns is determined by their broker. Typically a percentage of the total or expected sale price is made from a property.
The standard commission rate in the real estate industry is 6%, with 3% going to the listing agent and 3% to the buying agent. However, commission rates can vary depending on the location, the type of property, and the level of experience of the real estate agent.
Factors that affect the earnings of real estate agents
Several factors can affect the earnings of a real estate agent, including their commission fees, experience, location, and the type of real estate agency they work for.
Location
Real estate agents working in capital cities, such as Sydney or Melbourne, can expect to earn higher salaries than agents working in regional areas.
The property market in capital cities is often more active and competitive. Hence, this results in higher commissions for agents.
Experience
Experienced real estate agents who have been in the industry for many years and have established a strong client base. Hence, they can make a higher bid for the final sale price and earn higher salaries than newer agents who are just starting out.
As agents gain experience, they develop a better understanding of the property market. So, it helps them secure better deals and a higher sale price for their clients.
Real estate agency
The type of real estate agency an agent works for can reflect on their earnings. Agents who work for larger real estate agencies can expect to earn higher salaries and commissions than agents who work for smaller agencies.
Larger agencies often have more resources. They have better marketing materials and support staff, which can help agents to sell properties more effectively.
Real estate agent fees
Real estate agents earn money primarily through commission fees charged on the sale or rental of properties. These fees are a percentage of the total sale or rental price. However, these can vary depending on the type of property, the condition of the real estate market, and the location.
Commission fees are usually split between the listing agent and the buyer’s agent, with each receiving a portion of the total fee. The higher the sale or rental price, the higher the commission fee. Therefore, the higher the earnings for the selling property agent.
In addition to commission fees, as a selling agent, you can earn money through bonuses, incentives, or other performance-based compensation plans.
Ready to start your journey as a real estate agent?
If you’re considering a career as a real estate agent, it’s important to research the property market in your area. Connect to property platforms like Soho.com.au to have your properties listed for free.
Contacting local agents and real estate agencies can provide valuable insights into the earnings potential for real estate agents in your area. The real estate market has produced many successful real estate agents. A newbie with the right skills, experience, and support can become a good real estate agent.
