As a person contemplates a new career, they first consider whether the career is in an industry they enjoy. (You may have already determined that real estate is the right industry for you. If so – get started!) Another top-of-mind question people consider when contemplating a career pivot: “What is the average salary for real estate agents?”
When it comes to salaries, real estate is a unique industry, as real estate agents typically work solely on negotiable commissions. Most people who go into real estate are excited with the prospect of unlimited income potential, especially if they have worked hard in previous jobs without receiving financial rewards. However, with so many possibilities, it can be hard to predict the average salary for someone getting started in real estate. Let’s look at those income stats for beginning real estate agents in Florida.
Key Takeaways: Entry-Level Real Estate Agent Salary in Florida
- The average starting salary for real estate agents in Florida is $76,667.
- A real estate agent’s income depends on various factors, including location, expertise, brokerage commission split, and market conditions.
- The entry-level real estate agent salary can be maximized by following best practices.
Overall Expectations for Real Estate Starting Salaries
Starting salaries in real estate can vary widely depending on several factors, including whether you work full-time or part-time, your location, your niche (residential, commercial, luxury, etc.), your company or brokerage, and your specific role. (After all, not all people in real estate work as commissioned salespersons. You may also work as an appraiser, a property manager, or work for a real estate developer.)
Let’s do a deep dive into these factors to see how they affect your income.
Average Starting Salaries for Real Estate Agents in Florida
The average starting salary for real estate agents in Florida is $76,667, according to the 2023-2024 Florida Real Estate Salary Guide. Find out more interesting statistics, such as how income changes with the number of hours worked, by downloading this free report.
Factors Influencing Real Estate Agent Salaries
The salary we mentioned in the last section is the average of what first-year real estate agents make. Here are some factors influencing an agent’s starting salary.
1. Location
The commission earned by a real estate agent typically depends on the property’s sale price, so it makes sense that salespeople working in Coral Gables make more per transaction than those working in areas with a lower cost of living.
However, location isn’t the only factor determining a first-year agent’s income. People who sell lots of residential properties or focus on the commercial niche can do well, regardless of location.
2. Experience and expertise
As you review the income report, you’ll notice that real estate agents with 11-25 years of experience report having a higher income than those getting started. This shouldn’t be surprising since experienced real estate agents typically have a more extensive network and client base, so they don’t have to work as hard to find leads.
In addition to agents with experience, those specializing in condos report earning more than agents focused on other niches. This doesn’t necessarily mean that new agents in Florida should focus their energies on condos. However, it may mean that being laser-focused on a specific niche may be one way to increase your income.
3. Brokerage and commission structures
Another factor that plays a role in how much you’ll make the first year as a real estate agent is the agreement you sign with your brokerage. Beginning real estate agents are often required to give their brokerage a larger share of their commission in return for training and helpful resources. The percentage may decrease as you become more independent.
FAQ: How much do real estate agents make per sale?
There’s no set commission rate for real estate agents. It’s always been negotiable. But historically, buyer’s and seller’s agents have earned between two and three percent of the property’s sale price, which they share with their brokerages. Some real estate agents may charge a flat fee for their services instead of having their income based on the purchase price.
Related: Real Estate Agent Commission Calculator
4. Market conditions
Finally, market conditions also influence an entry-level real estate agent salary. Interest rates, inventory, world events, and home prices may affect your income. Like most industries, real estate experiences highs and lows. However, waiting for blue skies to earn your real estate license is not a good strategy. It’s best to have an established brand and connections so you are ready to work when the market becomes hot in your location.
Strategies for Maximizing Earning Potential Your First Year
If you are starting your real estate license courses or have already passed your licensing exam, do yourself a favor and sign up to receive Gold Coast School’s Real Estate Career Starter Kit. Our kit contains actionable strategies to maximize your earning potential as you exit the gate.
Here are a few of the topics our starter kit covers:
- Building a strong online presence. Building a professional online presence is easier said than done, but leveraging your existing contacts is a great way to get started in the industry.
- Networking effectively. Networking not only helps you connect with potential clients, but it’s also essential to establish connections with other agents and industry professionals, leading to referrals and business opportunities.
- Targeting niche markets. While there’s undoubtedly high income potential in residential real estate, you may focus on luxury, investment, or commercial properties.
- Focusing on education and training. Gold Coast Schools offers the classes you need to get licensed, renew your license, and upgrade your license. But we also offer courses that help you grow your business. Gold Coast Schools offers in-person, livestream, and at-your-own-pace online courses. We have helped hundreds of thousands of agents from Tallahassee to Key West and everywhere in between.
Contact a career advisor today to learn more about how Gold Coast Schools can help you get your real estate license and earn more than the average starting salary for a real estate agent.