Florida home prices grew by 7.3% in 2017, based on the previous year, and is predicted to continue its success throughout 2018 and beyond. Now is a perfect time to consider a career in Florida Real Estate. There are many factors to consider when deciding to change your career path. One of the main factors to consider when entering into a new profession, is what income can you expect to earn?
There are many factors to consider when deciding to change your career path. One of the main factors to consider when entering into a new profession, is what income can you expect to earn?
So, what is the average real estate agent income in Florida?
According to Glassdoor.com, and other popular real estate recruitment sites, the average real estate base income in Florida is currently around $48,883, for an experienced real estate sales agent, where a newly employed real estate sales associate can earn around $38,000 base income per year.
A registered Realtor can expect to earn a real estate income of around $52,000, while progressing to a real estate broker can earn you an average base income of around $72,500.
Your income greatly depends on the number hours you work. The more time you invest in your career, the more you will reap the benefits. Being knowledgeable about the local real estate market, and finding a successful brokerage to work for, who will mentor you through your first few years of working as a sales agent, will greatly improve your chances of success. Choose your employing brokerage wisely and do some research on your potential employer. Find out their reputation in the local area, and the length of time their employees have worked at the brokerage for. If a brokerage has employed people that have worked in the business for a reasonable length of time, it is a good sign that the business looks after their sales agents and broker associates. Remember it is not just a case of the brokerage choosing qualified employees, you also have the opportunity to choose your employing broker!
There is also the very important factor of commission earnings.
How is a real estate agent commission calculated?
In Florida, real estate sales associates are only permitted to receive a commission payment from their employing broker. It is unlawful to receive or even negotiate commissions directly from clients or customers.
The fee that a brokerage receives from a seller can vary from 3-7% in regards to residential property transactions. The agent will then receive a percentage of the fee, from their employing broker. The average commission split in Florida, between a broker and their sales agents is around 30/70.
For example, if you sell a house on behalf of your employing broker, for $650,000, and the broker has negotiated a commission with the seller, of 6%, then the commission the brokerage will receive will equal $39,000. But what if there is another agent involved in the transaction? If another agency has also been involved in the transaction the buyer’s brokerage will receive half of the commission. (3% of $650,000) meaning both brokerages receive a 50/50 split of $39,000, which equals $19,500.
Your agents commission from your employing broker will then calculated. So, if you receive 70% commission from your employing broker, it would equal 70% of $19,500, meaning you would earn a commission of $13,650 for your hard work. As you can see, a career in real estate can be financially rewarding!
Factors to consider when building a successful career in Florida Real Estate
Your success and financial rewards in your career as real estate sales professional will heavily rely on your networking ability! Real Estate career progression is based on how well you can create and maintain relationships with buyers and sellers, and members of your local community. Frequent networking will help achieve your goals of becoming a successful real estate agent and increase your potential of earning a rewarding real estate income!
There are many other factors, that can affect your income and commission. Be sure to research the average salaries in your local area, as the average base income for Florida Real Estate Agents fluctuates from city to city.
Florida’s Economy is growing which, therefore, should have a positive impact on your real estate income. More employment growth, and more opportunities for businesses to grow and flourish results in home buyers being attracted to Florida state.
Are you looking to find out more about becoming a real estate agent in Florida?
Read our Blog on How to get a Florida Real Estate License