Study: Rookie Pros Double Their Income After First Year

October 29, 2018

Real estate rookies often face tough challenges getting their business off the ground, but there’s a reason to hang in there. After the first year, most real estate professionals double their income, according to the 2018 Real Estate Agent Income Guide, a study conducted by prelicensing company Real Estate Express. 

Practitioners in the business for less than a year reported earning an average annual income of $19,375, according to the study. But those with one to three years of experience saw their average annual earnings climb to $41,023.

Income continues to grow for agents and brokers who gain even more experience. Real estate pros with four to 10 years of experience saw an annual income of $62,138, and those with 11 to 25 years of experience saw annual earnings of $83,177. Real estate pros with more than 26 years of experience reported earning $86,329, according to the study.

Real Estate Express Chart 1

Further, the study shows that agents who work longer hours also tend to reap higher profits. Those who work 60-plus hours per week earn nearly four times the amount of agents who work less than 20 hours per week, according to the study.

Real Estate Express Chart 2

“The first year in real estate always is the hardest, but agents that stick with it see the payoff within a year,” researchers note in the report. “Agents that have the most success in the first year are those that find a supportive brokerage and seek out a knowledgeable mentor for guidance.”

Source: 
Study: Real Estate Income Doubles After the First Year,” RISMedia (Oct. 28, 2018) and “2018 Real Estate Agent Income Guide,” Real Estate Express (October 2018)