Contrary to popular opinion, real estate agents are rarely rich. While a five or six percent commission might seem like a considerable pay cheque, you have to remember the costs. REALTORS® spend a considerable amount of money marketing themselves and their properties. What’s more, each agent is required to pay a portion of his or her earnings back to their parent agency and also their local association fees.
So, just how much money does the average Canadian real estate agent, broker or REALTOR® make? The answer depends on a number of factors.

Experience

Most first-year real estate agents struggle to make ends meet. Not only are they still learning the ropes, they’re also scrambling to build a client base. Since an agent’s annual earnings depends entirely on the number of transactions they complete, many first-year REALTORS® are required to pick up a second job in order to support themselves. As the years go by, real estate agents can rely on their referrals from satisfied customers to continue growing their business, or programs that they can join to meet new customers. Even so, the vast majority of real estate agents only sell 4 to 6 homes a year.

Expenses

It costs a lot of money to be a REALTOR®. Here’s just a short list of the kinds of expenses a real estate broker can incur over the year:
• Brokerage fees
• Travel costs
• Advertising and marketing expenses
• Continuing education
• Association fees
• Accountant fees
• Insurance

Type of Real Estate Professional

Top real estate producers earn considerably more than the average real estate agent. These mega-stars often sell an average of one home a month and can gross as much as $200,000 a year.
Most of these top producers are real estate brokers. Generally they have more education and experience than agents, but that isn’t always the case. High earning real estate brokers often employ broker associates to help them manage and grow their business. Brokers can also open their own brokerages in order to further capitalize on their business.
REALTORS can be either a real estate broker or a real estate agent. This title won’t directly impact the individual’s earning potential, however, brokers and agents that belong to the National Association of REALTORS® (in the United States) or the Canadian Association of REALTORS® (in Canada) subscribe to an extensive code of ethics. Home hunters appreciate this professional integrity and are thus more likely to work with a REALTOR® than a non-accredited agent.

A Word on Discount Brokerages

Discount real estate brokerages provided similar services to traditional real estate agencies, but at a cheaper rate. Real estate brokers and agents that work at these organizations need to work twice as hard to generate a reasonable income as they are volume businesses. In some cases, they pay their REALTORS® salaries rather than each REALTOR® earning their own commissions.
So, just how much does a real estate agent make? Studies have shown that the average real estate agent makes roughly $34,000 a year.

If you’re a real estate agent looking to increase your earnings, you’ve come to the right place! By allowing you to meet and communicate with new customers for free, it’s a cost effective way to decide which customers you’d like to invest in provided you’re invited to connect.