When considering a career in real estate, one of the most common questions is: “How do real estate agents earn income?” Unlike salaried jobs, real estate agents primarily earn income through commissions and other revenue streams. Understanding these income sources can help aspiring agents plan their career paths and maximize their potential.
1. Commission from Property Sales
The most common way real estate agents earn income is through commissions from property sales. Typically, when an agent helps buy or sell a home, they make a percentage of the final sale price.
2. Referral Fees
Agents can also earn income by referring clients to other real estate professionals. If an agent connects a client with another agent in a different market, they may receive a referral fee, which is usually a percentage of the commission made by the referred agent.
3. Rental Commissions
Some agents specialize in rental properties, making commissions by helping landlords find tenants or assisting renters in finding homes. Rental commissions vary but typically range from one month’s rent to a percentage of the lease agreement.
4. Property Management Fees
Agents who manage rental properties for investors can earn ongoing income through property management fees. These fees are typically a percentage of the monthly rent and cover services such as tenant screening, maintenance coordination and rent collection.
A career in real estate offers multiple ways to earn income beyond just traditional commissions. By diversifying income streams through property sales commissions, referrals, rental commissions and property management, agents can develop a long-term, fulfilling career.
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