Being a real estate agent is a lucrative job for many. Often, the general population sees the agent’s job as pretty straightforward:  You show a house, negotiate an offer and make thousands of dollars on each sale.  You make your millions. Realistically, very few people see the behind-the-scenes work that the average REALTOR has to do.

Many people prefer to start out in real estate part-time. A lot of first-time agents do make it work, but success depends a lot on your expectations and your game plan for reaching your goals.

While trying out a new career in real estate is exciting, it can also be daunting. Here’s how to know if a real estate part-time salary will be enough for me.

How to Calculate a Part-Time Real Estate Agent Salary?

When I will calculate a real estate part-time real estate salary, there, unfortunately, isn’t an easy answer for how much I’ll make. While some brokerages do offer a base salary plus a commission on the home sales I close, this isn’t the norm. Instead, most realtors will be depending on the income they earn from sales commissions and referrals.

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Calculating Your Part-Time Salary

To calculate a realistic part-time realtor salary, I have to determine my goal for annual home sales and referrals and add up the results.

For example, if I expect to sell two average-priced homes and refer eight clients who go on to complete a transaction in a year. A 3% commission on two $300,000 homes will earn me $18,000, while eight 25% referrals on similar sales will earn you another $18,000, for total gross earnings of $36,000.

Realize that many factors impact your earnings as a part-time agent. According to NAR, 56% of new agents earn less than $10,000 their first year. But as you gain experience, industry data shows that you can expect to earn more. Agents with 1–3 years of experience can expect to earn an average of $38,141, while those with four to 10 years can earn $63,595, and those with more experience can earn over six figures. 

Another important factor to keep in mind is that agents tend to make more money as time goes on. Since home values are currently increasing, the commissions and referrals are also going up. Agents also benefit from growing their book of business, with happy clients who purchased a few years ago coming back when it’s time for more houses.

Illinois Brokers Academy offers online real estate courses to help agents stay on top of their game. We provide the resources they need to grow their business and their client base.

Example Of What I Will Make As a Part-Time Real Estate Agent?

• The median home sales price is $235,000
• If I sell one home, I’ll earn about $7,050 (based on a 3% commission)
• Usually, your broker will have new agents on a 60/40 or 70/30 split, so I’ll keep about $4,600 (before taxes)
• If I sell 5 homes in a year, you’ll earn approximately $23,000
• After taxes and business expenses (signs, lockboxes, monthly broker fees, etc), I may net about $15,000

While the numbers may seem low at first, keep in mind that some really hit the ground running, and if I don’t, everyone gets better with time. This is a career just like any other and experience is key. Taking the time to pursue further training and education is vital, and in no time, I’ll see my income grow.

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Will It Be a Feasible Option For You?

Starting my career as a part-time real estate agent is a smart move if my other job offers some flexibility and I am willing to work long hours to market myself, be available for my clients, attend closings and handle any issues/questions that arise.  It’s a wonderful way to see if real estate is a good career path for me before I jump in with both feet. In real estate part-time, I can also build up my savings account so that when I will do full-time, I’ll have money to invest in my business and some cushion when business is slow.

Bonus Read: Can you be an independent real estate agent?

For more information, please contact us now!