In 2018, Dora Puig was the top real estate broker in Miami by sales volume, with over $189 million worth of homes sold. According to the Bureau of Labor Statistics, the average real estate agent earns $45,990 yearly. However, there is significant variability in income: 10% earn less than $23,000, and 10% earn more than $110,000. Median broker pay in 2020 stood at $60,000. Experienced brokers and luxury agents, especially those in California, can average $50 million in sales yearly with 2% commissions, with top earners making $141,000 annually.
Real Estate Professions and Salaries
Commercial real estate agents can command up to $300 per hour in certain cases, depending on their demand, knowledge, and experience. Property managers, who are responsible for managing properties and renters, also have the potential to earn substantial salaries; some companies offer stock options as part of compensation. Corporate real estate managers, who work with teams, are expected to make over $300 per hour.
State Comparisons and Predictions
West Virginia is the highest-paid state for real estate agents, with average earnings of $111,744 annually. The mean income for agents at $82,045 is significantly higher than the median income, suggesting the influence of high earners on the average. As for predictions, house prices are expected to experience a modest drop of -5% by mid-2023 due to affordability constraints, even though the Florida housing market remains hot in 2022.
Top Performing Agents and Their Pay Structure
Real estate agents typically earn their salary through commissions, often ranging from 1-5% of the listing price, and this is usually shared between the agent and broker. For example, with a $200,000 sale at a 7% commission rate split evenly, the listing agent would receive $7,000. Star agents, who perform exceptionally well, like Ben Caballero who surpassed $2 billion in volume in 2021, often deal with ultra-high-net-worth individuals, a demographic that continues to grow in size.
Richest Agents
The highest-paid agents tend to sell the most expensive properties, directly affecting commission earnings; however, the highest-paid agent’s identity may change annually due to varying factors such as experience and location. In 2021, Mauricio Umansky was considered the highest-paid agent, with his luxury brokerage, The Agency, contributing to his career sales of over $4 billion and a net worth exceeding $100 million.
Entering the luxury real estate market requires experience, potentially providing a lucrative career path for those who are successful in the high-end property sector.