We have all seen real estate agents driving luxury cars of all types. Some agency car parks are like the “magic mile” of German sports cars so the question is how much do agents really earn? Is real estate the easy way to earn your first million dollars?
People generally don’t come straight out and ask what I earn, however there are always comments like “You must be doing well for yourself”. The instant perception is that a tailored suit, polished shoes and a BMW equal success. This is probably the conclusion I would draw if I were to see a person randomly in the street and this has definitely been the conclusion drawn by the public when it comes to real estate agents.
The reality is that around 80% of first year real estate agents fail. That means that around 4 out of every 5 new agents drop out of the industry in their first 12 months on the job. An entry level sales agent can expect to earn less than $40,000 in their first year and it is this constant financial battle which proves catastrophic to most people. The average salary in NSW for a residential sales agent is $63,133, with commercial sales agents averaging $96,782. Of course some agents earn well in excess of $1 million dollars but they are a very rare find. Enormous amounts of hard work, dedication and perseverance are needed to perform at the very top level.
Most real estate agents earn between 30-60% commission depending on their sales volume, so when you see agents driving luxury cars ask yourself how much work is required to really make it to the top and stay there? If you believe you can or if you believe you can’t then you are right!