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Real Estate Agent Salary - The Average Salary of a Real Estate Agent

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As of 2008, the median annual salary of real estate agents is $40,150. It is not unusual for a real estate agent’s income for one year to be thousands of dollars more or less than the previous year. The average real estate agent salary varies based upon several factors. These factors include location, work ethic, and the economy.

A real estate agent’s salary is primarily comprised of commission made on sales of real estate. The rate of commission is determined by the type of property (commercial, residential, farm, etc.), the property’s value, and the agreement between the real estate broker and the real estate agent. Because income is based on commission, it makes sense that the higher the value of a property, the larger the commission a real estate agent earns from the sale of that property. Real estate prices vary by neighborhood, city, state, and region. Since residential real estate prices are typically lower in southern states than in northern states, commission earned on the sale of a 2-bedroom house in Atlanta may be lower than a 1-bedroom apartment in New York City.

The economy also plays a big part in the salary a real estate agent pulls in. If the housing market is in a slump, salaries of real estate agents are lower because there is less available work. Months can pass without a single sale. Also, because many houses are sold for less than they are worth in a poor economy, the commissions earned on such sales are lower. When there is a housing boom, a real estate agent has a greater opportunity to earn a high salary.

Work ethic is another determining factor of a real estate agent’s salary. The more effort an agent puts into advertising and networking, the more he or she can earn.

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