Incomes vary in lots of professions across different regions, and real estate agents are just as susceptible to this as anyone else.
So if you live in Arizona and you are thinking of qualifying as a realtor, or you are already a pro and you’re thinking of relocating to this part of the country, what can you expect to earn?
Qualification is a must
The first point to make is that in order to work as a realtor in Arizona, you need to train for and pass the licensing test to get your foot in the door.
The good news is that you can do this at one of the many great Arizona online real estate schools, giving you the flexibility to fit your training around your current work, school and life responsibilities without needing to head to a bricks and mortar location.
Averages vary significantly
The national average salary for a real estate agent is around $50,000 according to the Bureau of Labor Statistics (BLS). The problem is that the averages for Arizona vary significantly depending on which source you use.
For example, CareerExplorer pegs the median income of a realtor in Arizona at just over $50k, while SalaryExpert from ERI puts this at almost $61k, and Salary.com marks this much lower at around $43k.
Going back to the BLS stats, the state-wide range of earnings in this profession is between $50k and $60k, which is probably the best indication on which to base your expectations.
This is significantly lower than the average earnings in the country’s most expensive real estate market, New York, where agents typically take home just over $100k annually. Even so, it is a respectable sum and one which works well in the context of Arizona’s lower living costs.
Commissions are all-important
There is a lot of variance in the amount of money that real estate agents make in Arizona and elsewhere because of the role that commissions play in determining their earnings.
While realtors will have a base salary, this is topped up significantly by the commission they earn on the houses they sell for clients.
The size of the commission an agent takes for a real estate transaction will vary, and is usually in the range of between 2% and 7%. Arizona’s average sits at around 5.4%, although again there is no hard and fast rule on this.
The upshot is that even if an agent’s basic salary is very modest, or even non-existent according to the rules their employer puts in place, commission earnings can keep them more than comfortable. And if you hit a hot streak, or the market goes stratospheric, major earning opportunities arise.
The more experience you gain working in Arizona’s real estate market, and the longer you are with a given employer, the higher your potential income will be as an agent.
Junior positions will have entry-level salaries and commissions to match, while more senior agents will be eligible for a slice of the bigger and better deals, which helps bump up their pay packet each month.
And of course the more hours you work, the more you can make as a realtor in Arizona. It’s all about getting out there, winning clients and fulfilling their needs in a meaningful way to make sure that property transactions go smoothly.
So if you want a rewarding career, becoming a real estate agent in Arizona could be right for you. It’s not all about the money, of course, but it definitely helps to have good prospects in this regard when choosing a job.