do estate agents make a lot of money?

New real estate agents are likely to sell even fewer houses and earn even less income. If you went into real estate to get rich, you may have chosen the wrong profession. Many agents don't even earn that much. To get rich in real estate, you have to understand a simple fact.

What most real estate agents don't realise is that it takes a lot more work to sell those 20 cheaper houses than those two expensive houses. So why aren't more real estate agents focusing on the more expensive properties? The reason is simple. Because agents are not used to living in, visiting or selling expensive houses and working with wealthy people, there is a fear of the unknown. But is this fear based in reality? An article in New York Magazine recapped a remarkable piece of scientific work that found that wealthy people are unempathetic, insensitive, and oblivious to others.

They tend to cheat and are even more likely to be idiots while driving. Well, they should, if they want to get rich in real estate. There is no doubt that people with money can be more discerning. They are careful about how they spend their money, which in many cases, is how they got rich in the first place.

They're spending a lot of money on this house, so they should get what they're paying for, and they can be short with their words because their time is valuable. But frankly, I don't agree with New York Magazine or the research behind their article. I have found that most wealthy people are great people. Yes, they have their quirks, like everyone else.

Rich people like to work with people who behave with class, competence and confidence. If you don't have this, you may have a reason for your fear, but this can all be fixed with coaching. If you are interested in selling luxury real estate, there are a few things you can do today to get started. If people don't know you handle large accounts, they won't hire you for the job.

This comes with training and coaching. These are just a few of the many secrets I use to sell luxury real estate. In fact, some luxury home deals are not as difficult as you might imagine. I have sold some luxury homes in just a few days.

Just don't let the fear of working with people who are rich and smart (and nicer than you can imagine), stop you from getting rich in real estate. Leonard is the founder of Luxury Agent and Valore Group. You can follow him on Twitter or LinkedIn - have you forgotten your username? If so, please contact customer service at (5 658-9252) Password reset instructions have been sent to Please update your billing information to reactivate your membership. But unlike W-2 jobs, a commission-based job such as real estate agent or broker has unlimited earning potential.

Some agents earn more than a million dollars a year. You get back in income what you invest in effort and time. So how much can you really earn? Commissions are usually paid by property sellers and are negotiable by law. Some selling agents get 2.5 the purchase price of the contract and offer the same to buying agents, but it varies.

As an example, we will use 2.5%. Most estate agents earn money through commissions. These are payments made directly to estate agents for services rendered in the sale or purchase of a property. The commission is usually a percentage of the sale price of the property, although it can also be a flat fee.

Most real estate agents earn money through commissions paid directly to brokers when transactions are settled. A single commission is usually split in several ways between the selling agent, the selling broker, the buyer's agent and the buyer's agent's broker. The commission split that a particular agent receives depends on the agreement they have with their sponsoring broker. Two of the agents on my team took online classes through Real Estate Express and easily passed the exam.

Call and tell them what you can offer as a real estate agent, the benefits to them as sellers and the steps you will take to get their home sold. While effort and hard work (and, of course, whether or not you work full time) will greatly influence your earnings as a real estate agent, where you are located is also an important factor. A typical set-up would be for agents to get a 70 per cent commission from their own clients and 50 per cent from the leads you give them. Many agents choose a broker with the best commission split, rather than the broker who offers the best training.

Agents who are just starting out often receive a low commission split while they learn the business. If you tell everyone you know that you are going to become an agent, you can build your client base before you become an agent. Each specific real estate designation has an optimal use case, so it helps to understand which one you need for your situation. It works very well for everyone, as I make money for doing very little work, agents get leads and their expenses are paid.

84% of home buyers and sellers said they would recommend and use their estate agent again. The real estate agent will have expenses to pay, such as the office bill, MLS fees, insurance and other miscellaneous items. Because real estate agents charge a percentage commission (typically, as a new agent, you will split 3 percent of the purchase price with your agent, and that split will depend on what you agreed to when you were hired), the higher the home prices in the location where you work, the more you will charge per sale.

Anna Vitantonio
Anna Vitantonio

Passionate web evangelist. Total web guru. Lifelong twitter expert. Certified zombie buff. Award-winning social media enthusiast.