How much does a beginner real estate agent make in California? (2024)

How much does a beginner real estate agent make in California?

As of Feb 4, 2024, the average annual pay for a First Year Real Estate Agent in California is $79,753 a year. Just in case you need a simple salary calculator, that works out to be approximately $38.34 an hour. This is the equivalent of $1,533/week or $6,646/month.

What do most realtors make their first year?

According to Indeed, the average salary is just over $94,586 for first-year full-time agents — but this rate can vary greatly. As a recent 2020-2021 report reveals, many agents start out by earning a significantly lower salary but actually double their income once that first year is under their belt.

Is becoming a Real Estate Agent worth in California?

In California, real estate agents make an average of $90,000 a year. It's far from the highest-paid profession in the state, but therein lies the beauty, as it can be. Agents usually collect a commission of between 2 and 3%. The more clients they have and the more houses they sell, the more money they make.

How much does a part time Real Estate Agent make in California?

Part Time Real Estate Agent Salary in California
Annual SalaryHourly Wage
Top Earners$126,817$61
75th Percentile$98,700$47
Average$76,442$37
25th Percentile$59,200$28

Is it hard starting out as a Real Estate Agent?

Key Takeaways. Working as a real estate agent or broker can be fulfilling and financially rewarding, but it's not easy. A career in real estate requires drumming up business, promoting yourself, tracking leads, handling complex paperwork, providing customer service, and much, much more.

Is the first year of real estate the hardest?

So don't expect your first year to be easy. The first year will be one of the most challenging years of your career in real estate, particularly if you don't have mentors who can help. Your first year might not meet all your initial expectations. Additionally, you may not achieve monumental financial success.

How do I make my first year successful in real estate?

5 Tips to Survive Your First Year in Real Estate
  1. Find the Right Sponsoring Brokerage. ...
  2. Have a Financial Cushion or Alternate Income Source. ...
  3. Build Your Network From Day One. ...
  4. Be a Proactive Learner. ...
  5. Build Your Personal Brand. ...
  6. Build a Successful Real Estate Business From the Ground Up.
Jan 25, 2024

What are the cons of being a realtor?

The Pros and Cons of a Real Estate Career
  • Pro #1. Achieving Freedom. ...
  • Pro #2. Feeling Responsible. ...
  • Pro #3. Being Respected. ...
  • Pro #4. Excitement. ...
  • Con #1. Having Nothing to Do. ...
  • Con #2. Doing the Wrong Things. ...
  • Con #3. Weird Working Hours. ...
  • Con #4. Irregular Income.

What are the risks of being a real estate agent?

Stress
  • Lack of Sales Due to Housing Market Unpredictability. ...
  • Unrealistic Expectations of Sellers. ...
  • Commissions Reliance on Home Prices. ...
  • The Number of Real Estate Agents. ...
  • When the Agent Is Also a Real Estate Investor.
Nov 15, 2017

Is it stressful to be a real estate agent?

Though you get to experience the excitement of getting your clients into a new home or property, the process often comes with some stress. Your clients may make a significant financial decision and often feel conflicted. While it's exciting to help your clients, this career comes with its challenging moments.

How many hours a week do most realtors work?

The typical real estate hours that a full-time agent put in ranges from 30 to 50 hours per week. But during closing deals in busy periods or meeting client demands over the weekends, there is no limit to the working hours. This is the time that is generally preferred by clients to do their property shopping.

How much do beginner real estate agents make a month in California?

First Year Real Estate Agent Salary in California
Annual SalaryMonthly Pay
Top Earners$126,817$10,568
75th Percentile$98,700$8,225
Average$79,753$6,646
25th Percentile$59,200$4,933

How hard is it to pass the California real estate exam?

The difficulty of the real estate exam varies by state, but the California real estate exam is known to be one of the most difficult. In fact, the pass rate for the California real estate exam in the last two years was under 50%, which means it's incredibly competitive and difficult to pass.

How many real estate agents fail in the first year?

According to them, 75% of real estate agents fail within the first year, and 87% fail within five years. Some common mistakes that agents make include, inadequate prospecting, not marketing properties in ways that lead to fast sales, and not following up with clients.

Is real estate a good side hustle?

One of the most highest paying side hustles is being a real estate agent. You don't have to work on any schedule, and if done right, you can have clients come to you or you don't have to go far to find someone who will hire you.

What is the hardest part of being a real estate agent?

Long Hours

One of the toughest parts of the job is that long hours can be a significant challenge for real estate agents –– whether a new agent just starting in the business or an experienced agent. And to grow a successful business and meet the need of clients, realtors often need to work well beyond the typical 9-5.

Why do most real estate agents fail in their first year?

Most real estate agents fail in their first year, according to research. Three common mistakes that agents make is inadequate prospecting, failing to market properties in ways that lead to fast sales, and not following up with clients.

How long does it take to break even in real estate?

While Zillow doesn't have historical data on breakeven durations, the timeline for homeowners to break even on their property is, typically, around four to six years, according to several real estate experts and resources. To see this timeline extend to well more than a decade could be a shock to future homeowners.

How many people fail as real estate agents?

This article is part of a larger series on How to Become a Real Estate Agent. Common statistics say that 87% of real estate agents fail within five years. On the other hand, numbers from the Bureau of Labor Statistics show that the real estate failure rate between 2020 and 2022 was about 43% to 54%.

What is a good age to start real estate?

But it's the advantages of being in your 30s and 40s — the ability to secure credit, the professional influence, a work experience that can reduce the small-business learning curve — that makes starting a real estate career at this time an often perfect choice.

What are the odds of making it as a realtor?

Depending on the source, the percentage of real estate agents that fail in the business within the first 5 years ranges between 85-90%. When you think about it, nearly 9 of 10 new agents can expect to fail, which is an eye opener.

Is 100k enough to start in real estate?

In affordable housing markets, $100k would be enough to cover a 20% down payment plus closing costs and holding costs until your new renter moves in. In a really affordable market, you might even have enough cash on hand to cover the necessary renovation costs as well.

Does investing in real estate pay off?

Real estate properties typically appreciate over time, increasing a real estate investor's profits, especially if you invest for the long term. You can turn property appreciation into cash flow by leveraging the profits with mortgage financing or selling the property for a profit.

Why do you love being a real estate agent?

I have the opportunity to work with a lot of different people with different backgrounds, different interests, different income levels, and different needs. I love getting to know each individual; I love building rapport with each individual; I love earning the trust of each individual.

Is it a good idea to invest in real estate?

On its own, real estate offers cash flow, tax breaks, equity building, competitive risk-adjusted returns, and a hedge against inflation. Real estate can also enhance a portfolio by lowering volatility through diversification, whether you invest in physical properties or REITs.

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