INCOME GUIDE 2020 -2021 REAL ESTATE AGENT - HUBSPOT
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2020 -2021 Real Estate Agent Income Guide What’s inside? We surveyed nearly 6,000 real estate professionals across the United States to better understand the strategies and tactics they use to succeed. Find out what top real estate producers do to increase earning potential.
Real Estate Profile
Real Estate Agent Snapshot
Full-time agent average gross income: $60,490
(work 20+ hours/week)
Part-time agent average gross income: $21,195
(work
Real estate agents are satisfied and optimistic
Overall, real estate agents are happy in their career satisfaction rating among real estate agents
careers. In fact, when compared to all American increased 14 points over the previous year.
workers across all professions, real estate
Real estate professionals continue to be optimistic
professionals are 28 percentage points more
about the future of their real estate career, with
satisfied. Driving this satisfaction is the fact that
83 percent of respondents indicating their future
real estate agents get to be their own boss, have
looks bright. This optimism is fueled by the strength
a flexible schedule and help people achieve the
of the real estate market over the past several
American dream of owning a home. Moreover,
years and the resilience of the industry despite the
real estate career satisfaction is rising as this year’s
COVID-19 pandemic.
Career satisfaction rating Real estate professionals are
optimistic about the future
82% 54% NO 4%
MAYBE
13%
YES
83%
Real Estate Agents All U.S. professions*
*SOURCE: The Conference Board, 2019
What makes a real % of respondents
estate career rewarding? Attribute claiming it is very
important to their career
A career in real estate has many Ability to help people 90%
benefits. Here are the top attributes Flexible schedule 83%
real estate professionals said are very
Income potential 81%
important to them.
Being my own boss 73%
Work with homes,
65%
land, buildings, etc.
On-the-go work
57%
environment
“Homeownership is more important than ever, so I am happy to be able to play a role in this industry.”
- Kimberly, real estate agent, Arizona
3 RealEstateExpress.com 2020-2021 Real Estate Agent Income Guide
It pays to be happy
Eight out of 10 real estate agents are satisfied with their career choice. A flexible work
schedule, the ability to help people and respectable income are reasons
they cite for their happiness.
#NewAgentTip
Agents who are very satisfied with their career
“Work hard, but make time for
earn an average of $59,000 more per year than
yourself too!”
agents who are not satisfied.
— Allison, real estate agent, Georgia
Income by Career Satisfaction
(Full-time agents)
$100,000
$87,237
$80,000
$60,000
$51,671
$40,000
$33,506
$28,149
$20,000
0
Not satisfied Neither satisfied Somewhat Very satisfied
nor dissatisfied satisfied
4 RealEstateExpress.com 2020-2021 Real Estate Agent Income Guide
Common factors that influence income
Real estate agent income increases sharply with experience and hours
worked per week, as is the case with many careers. For those just
getting started in real estate, it’s important to find a supportive brokerage
and helpful resources to keep you engaged and growing in your career.
When it comes to your weekly schedule, real estate agents need to weigh
their work-life balance with income desires. Fortunately, in a real estate career,
you get to make that decision for yourself.
Agent income rises with experience Surround yourself with support
The first year in real estate is the hardest, but
Years of experience in real estate
Under a
$19K agents who stick with it will see the payoff
year
1-3 years $38,814 in just a few years. A supportive brokerage,
a knowledgeable mentor and a supportive
4-10 years $76,629
at-home network will all pay off in spades in
11-25 years $98,913 future years as you establish your business.
26+ years $118,527
$0 $25K $50K $75K $100K $125K
Annual income
Longer hours pay off Find the right work-life balance
Eighty-three percent of real estate agents say
21-39 hrs $21,199
Avg. hours worked per week
a flexible schedule is very important in their
21-39 hrs $40,940 career. While real estate gives you the option
40-50 hrs $68,817 to decide when you’ll work, those who reach
their full earning potential put in more hours.
51-59 hrs $85,833
It’s up to agents to find the work-life balance
60 hrs
or more $98,716 that is best for their situation.
$0 $50K $100K
Annual income
5 RealEstateExpress.com 2020-2021 Real Estate Agent Income Guide
Average income by brokerage type Find a brokerage that’s a cultural
and earnings fit
Hybrid
brokerage
$58,027 Eighty-four percent of agents say a fair
Independently commission split with their brokerage is
owned brokerage $51,365
very important to them, but commission
National
franchise $52,064
split is not the only factor that matters
Self-
employed $77,559 when selecting a brokerage. As with most
professionals, company culture is also
Other $75,811
important. Brokerages vary based on their
$0 $20K $40K $60K $80K structure, philosophy and agent earnings. If
Avg. income
you’re just kicking off a real estate career or
considering switching brokerages, look for
one that is both a cultural and earnings fit.
It pays to specialize
$100,000
$83,508
$75,000
$83,308
$77,027
$75,122
$74,428
$73,839
$69,439
$67,693
$67,675
$67,312
$67,205
$66,424
$59,009
$50,000
$52,395
$51,941
$25,000
$26,992
$0
N/A - Affordable Residential Property Condos Multi-family Second/ Investment Military Relocation Commercial Green or Short sales / Foreign Luxury Other
I don’t have housing properties management properties vacation properties properties eco-friendly foreclosures investment real estate
a specialty and/or rentals homes properties
Real estate agents who focus on one or more specializations or designations earn more than agents who
don’t associate themselves with a particular specialization. The most profitable specializations are luxury
real estate, foreign investments, short sales and foreclosures, and green or eco-friendly properties.
The Institute for Luxury Home Marketing is the premier independent authority in training
and designation for real estate agents working in the luxury residential market. Real estate
professionals who earn The Institutes’s Certified Luxury Home Marketing Specialist (CLHMS)
designation for luxury home marketing earn an average of $291,000 per year.
Learn more at LuxuryHomeMarketing.com
6 RealEstateExpress.com 2020-2021 Real Estate Agent Income Guide
Key areas where experts excel
The survey identified four key areas where the experts excel.
Similar to the 2019 survey, top earners are those who consistently
find high-quality leads, invest in their professional development, utilize
past clients to generate referrals, and set goals for themselves.
1 Top earners consistently
find quality leads
Network, network, network
Agents who consistently find quality leads
earn over $82,000 more than the agents who
Expert $109,199 are failing at identifying top-notch leads. This
is not surprising when you consider real estate
Growing $70,015 is a business built on lead generation. Word
of mouth and networking are the strongest
Novice $35,187 influencers in generating good leads.
Failing $26,639
Network with other agents,
network with neighbors, network with
$0 $50K $100K
acquaintances. Networking is the best way
Avg. Income
to see your real estate business thrive.
- Bridget, real estate agent, California
2 Top earners invest in
professional development
Invest in yourself
Agents who invest in professional development
opportunities earn over $50,000 more than
Expert $86,545
agents who are failing in this area. There’s
no shortage of ways to increase your real
Growing $55,774 estate expertise. From online professional
development courses to in-person conferences,
Novice $39,422 there’s always something new to learn.
Staying informed on market trends and
Failing $36,123
taking professional development courses
$0 $25K $50K $75K $100K helps me provide the best possible service
Avg. Income to my clients.
- Javier, real estate agent, Texas
7 RealEstateExpress.com 2020-2021 Real Estate Agent Income Guide3 Top earners generate referrals
from past clients
Ask for the referral
Real estate agents who are experts in
generating business from referrals earn an
Expert $99,018 average of $76,000 more per year than agents
who are failing in this area. The most important
Growing $57,727 step in generating referrals from past clients is
simply to ask for a referral. It’s also a good idea
Novice $33,636 to stay in touch with past clients over the years.
Send out a monthly email newsletter, follow
Failing $22,340 them on social media, host a client appreciation
$0 $25K $50K $75K $100K happy hour. There is no shortage of ways to
Avg. Income create a lasting impression on your clients.
Most of my business is referral-based
from past clients. These referrals are
important because they come with faith
from the person who referred them, so the
relationship is easier from the start.
- Karen, real estate agent, Ohio
4 Top earners are fantastic
goal-setters
Set Goals
Agents who consider themselves very
successful at setting goals earn an average
Expert $79,388
of $41,000 more than agents who are failing
at goal-setting. Whether it’s determining
Growing $56,388 how many sales you want to close in a year
or how many leads you want to acquire
Novice $39,211 each week, giving yourself an ambitious yet
attainable goal can help keep you motivated
Failing $38,300 and productive. Make sure your goals are
S.M.A.R.T. (Specific, Measureable, Attainable,
$0 $25K $50K $75K $100K
Relevant and Timely).
Avg. Income
Each year I set goals for myself. There
hasn’t been a year that’s passed where I
haven’t reached it. It keeps me focused and
honest with my priorities.
- Jeffrey, real estate agent, Alabama
8 RealEstateExpress.com 2020-2021 Real Estate Agent Income GuideSpotlight on Success: The
Power of Investing in Yourself
A key area where successful real estate agents you have hit a plateau, the
excel is investing in themselves—and you’d be right coach or program can be
hard-pressed to find someone who understands a game-changer. It’s for this reason that Sherri
this more than top real estate started her coaching business
“Investing in coaching
coach for over 20 years, Sherri in 2017. While Sherri still has an
is going to help achieve
Johnson. active license and continues to
your goals a lot quicker sell houses regularly, seeing the
Sherri attributes her success
with less headache, positive impact that her coaching
as a real estate agent and
less expense, and has had on thousands of lives
coach to her constant thirst for
a more streamlined is what motivates her to get up
knowledge, recommending both
roadmap to success.” every morning.
new real estate agents and those
who have been in the business for years to 90-Day Bootcamp with Sherri Johnson
do the same. Here, Sherri shares some top
Sherri explains that most real estate agents know
ways to invest in yourself.
what they need to do to achieve results, they
1. Keep up with the latest news and trends just don’t know how to go about doing it. That’s
One of the simplest ways to invest in your where Sherri’s coaching comes in. “Our goal is to
education and professional development is take motivated agents and bring out the best in
keeping up with the latest industry news and them and help get them accelerated results using
trends. “Increase your knowledge by reading our strategies,” says Johnson. These strategies
and being informed,” says Johnson. For Sherri, are outlined in her 90-Day Bootcamp with Real
this is the key to staying relevant and on top of Estate Express. “Most agents are only speaking
the competition. to the four to six people who want to buy or sell a
home in the next 30 days. Our Bootcamp expands
2. Attend conferences and tradeshows
that and builds a pipeline of leads which can help
Not only is this a great way to network with other agents predict how much they want to make in
agents and brokers across the country, but it is a a given year.” Whether you are a newly-licensed
fantastic way to “soak up every single thing I could agent or a seasoned pro, this boot camp has
learn from people who were successful.” something for you. As Sherri explains, “there’s
3. Hire a real estate coach always something new you can learn.”
Sherri explains that the best way to invest in
yourself is to hire a coach. Just like the top
athletes in the world engage coaches to guide For more information about
them and provide accountability, real estate Sherri’s 90-Day Bootcamp, visit
agents of all levels of experience should have realestateexpress.com/bootcamp
coaches as well. “Investing in coaching is going or visit sherrijohnson.com/schedule-your-call-
to help achieve your goals a lot quicker with less today to set up a free one-hour
headache, less expense, and a more streamlined strategy consultation.
roadmap to success,” says Johnson. Whether you
want to increase your yearly income or feel like
9 RealEstateExpress.com 2020-2021 Real Estate Agent Income GuideReal estate marketing insights
Which marketing channels do you utilize to promote your business?
81% 57% 54% 39% 21% 13%
Email Website/
Social media Mailers Video Other
Marketing Blog
A large part of a real estate agent’s job is marketing themselves. However, this doesn’t mean that all
your prospects will be in the same place. You have to meet them where they are. For some, this may
mean being on social media (particularly Facebook). For others, mailers are the best way to reach them.
Make sure you utilize a variety of marketing tactics to ensure that your reach is wide and effective at
obtaining new clients.
Income by website age Publish a website
Having your own website is a must for today’s
professionals no matter what industry you
0-1 years $32,510
work in. As a real estate agent or broker, this
is even more important as it is a key way to
2-4 years $62,490 differentiate yourself from the competition,
generate quality leads, increase your lead
5-7 years $97,869 conversion, and much more.
Stay relevant—have a web presence!
8+ years $122,327
- Elaine, real estate agent, Arizona
$0 $25K $50K $75K $100K $125K
Avg. Income
#NewAgentTip
“Develop a good and consistent marketing plan to get the
word out to everyone you know that you are a licensed real
estate agent.”
— Stephanie, real estate agent, Tennessee
10 RealEstateExpress.com 2020-2021 Real Estate Agent Income GuideHow COVID-19 affected the real estate industry
Have you had more or less business as a result of the COVID-19 pandemic?
Overall, the COVID-19 pandemic has not had much
More
32%
business of an impact on real estate professionals in terms
Less
of the amount of business acquired. While safety
business 31%
precautions such as social distancing have made
Same activities such as door-knocking, open houses, and
amount 30%
networking in person more difficult, lower mortgage
rates and technology advances allowed most real
Other 7%
estate professionals to conduct business as usual.
0% 10% 20% 30% 40%
Percentage*
*Percentages only include respondents who have been licensed for more than 1 year.
Want more tips and tricks?
Visit our blog at
RealEstateExpress.com/blog
to access hundreds
of articles and resources to
help you grow your career!
Methodology
Data in this report is from a survey conducted in December
2020 that generated 5,406 responses from licensed real estate
professionals in the United States. The study has a 2 percent
margin of error at a 99 percent confidence level.
Learn more about the study at RealEstateExpress.com/Income
11 RealEstateExpress.com 2020-2021 Real Estate Agent Income GuideAbout Real Estate Express
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With industry-leading pass rates, our user-friendly learning platform and enhanced service
offerings, our company prepares aspiring real estate professionals to get licensed and kick
start their career.
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