In the United States, the mean real estate agent salary is $58,410 per year. Real estate agents in Canada earn on average C$55,481 ($42,918 USD) per year. Pay runs between £12,000 ($14,715 USD) and £60,000 ($73,574 USD) for real estate agents in the United Kingdom. The average is AU$48,925 ($35,831 USD) in Australia, CHF72,000 ($70,805 USD) in Switzerland, and NOK705,600 ($82,724 USD) in Norway.
Real Estate Agent Salary Influencers
Salaries for real estate agents can be influenced by the nature of the real estate agency, conditions in the real estate market and economy of the particular country, and experience.
In many cases, real estate agents work for themselves or for small real estate agencies. For example, in the United States, almost half of real estate brokers and sales agents work as freelancers. According to the Canadian Government, only 5.7 percent of real estate agency establishments reported one or more employees in 2014. The remainder did not have employees or had an undetermined employment type.
Commissions play a role in the compensation of real estate agents. By illustration, commissions run between AU$3,077 and AU$48,722 for real estate agents in Australia. Under the Fair Work Act of Australia, real estate agents (other than “junior employees” of real estate agencies) can opt to be paid solely on commissions ().
Agents in Canada average C$5,000 in commissions. Since pay depends partially upon sales of real estate, the strength of an area’s real estate market figures into compensation prospects. To get a complete overview of the field, we suggest reading about the salary of an insurance agent.
2. Geographical Area
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Real Estate Agent Salary in the US
According to the U.S. Bureau of Labor Statistics, real estate agents earn an average of $58,410 per year, as of May 2015. Pay among the top ten percent earners stands above $110,560. One in four real estate agents makes more than $70,520 annually.
Real Estate Agent Salary in Canada
PayScale reports that real estate agents in Canada make between C$35,033 and C$117,638 annually. The average stands at C$55,481 per year.
Real Estate Agent Salary in the UK
According to Prospects, real estate agent salaries in the United Kingdom span between £12,000 and £60,000, perhaps more with commissions.
Real Estate Agent Salary in Australia
PayScale states that real estate agent pay in Australia averages AU$48,925 per year. Earnings range between AU$34,135 and AU$90,948 per year.
Real Estate Agent Salary in Switzerland
Salary Explorer reports that real estate agents in Switzerland earn on average CHF72,000 per year.
Real Estate Agent Salary in Norway
Statistics Norway reports that, as of 2015, estate agents in Norway earned on average NOK58,800 per month. This equates to annual pay of NOK705,600.
PayScale states that entry-level real estate agents in the United States earn around $43,000. Pay reaches $59,000 per year starting at the “Mid-Career” stage and $62,000 at the experienced stage. Those with at least 20 years of experience average $75,000 per year.
According to PayScale, real estate agents in Canada with 10 to 20 years experience earn 64 percent more than the national average. Entry-level agents in Australia start on average at AU$48,000 and reach an average peak of AU$64,000 during the mid-career stage. Beyond seven years, pay slides from that level back to AU$50,000 by late-career.
In the United Kingdom, real estate agents in training start between £12,000 and £20,000. Afterward, salaries range from £25,000 to at least £60,000 per year.
Real estate agents keep full-time hours. In the United Kingdom, the average work week is 35 to 40 hours. Agents in Australia work an average of 43.7 hours per week, compared to 40.2 hours a week for all occupations.
To show houses and attend real estate closings, agents often work outside the office. Accommodation of the schedules of potential home buyers means that real estate agents work evenings and weekends as well as weekdays. As many are self-employed or enjoy autonomy in their work, agents often can set their own schedules for office work or meeting with clients.
Bonuses & Benefit Packages
According to PayScale, real estate agents in the United States fetched bonuses up to $14,975. Bonuses for real estate agents in Australia range from AU$496.35 and AU$35,235, reports PayScale. On average, real estate agents in Norway obtained bonuses of NOK8,300 per month, or NOK99,600.
Real estate agents in Australia, Switzerland, and Norway who are not self-employed are entitled by law to certain benefits. For example, employees in Australia and Norway are entitled to paid holiday leave and annual leave.
As to pensions, Australian law affords employees superannuation benefits, which employers fund as a percentage of the employee’s earnings. In Switzerland, employees receive retirement through a three-pillar system. The first two levels consist of “Old Age and Survivors’ Insurance” and mandatory employer contributions and afford real estate agents retirement benefits equal to 60 percent of their earnings. In the third pillar, employers may, but are not required to, contribute to employee’s pensions. In Norway, real estate agents have the benefit of occupational pension.
According to the U.S. Bureau of Labor Statistics, employment of real estate sales agents in the United States should rise by three percent by 2024. This represents an increase of 9,400. The Australian Government reports that, as of November 2015, Australia had 88,900 real estate sales agents. Job openings in this field should run between 25,001 and 50,000.
Prospects for employment of or work for real estate agents are significantly tied to the housing market. In Switzerland, demand for owner-occupied properties may drop as the high costs of buying homes may leave younger populations out of the real estate purchase market. Moreover, according to SwissInfo, the average homeowner in Switzerland is 57 years old. Further, job opportunities may be limited in Switzerland as most brokerage firms tend to have small opportunities and limited listings.
Bloomberg Markets reports that, in 2016, approximately 85 percent of Norwegians owned their home and 65.6 percent took out loans for the home.
Due to few barriers to entry, real estate agents can become self-employed more readily than those in other occupations. With many real estate agents paid based on commissions, the demand for housing can affect earnings for agents. To conclude, experience can help agents draw higher commissions and salaries.