Insights on ways brokers boost their income
Real estate agents with special designations and/or who focus on specific niches tend to have above-average income, according to the latest Real Estate Income Report from McKissock Learning. Their research also showed experience and hours worked correlate with earnings.
Findings in the 4th annual survey were based on self-reported data from nearly 9,000 licensed real estate professionals.
Full-time agents reported earning an average gross income of $129,996 in 2020. On average, they had nine years of experience and worked 34 hours per week. Full-time brokers earned nearly 60% more, averaging $206,952 in gross income. (The median income for all full-time U.S. workers in 2020 was $67,521, according to the U.S. Census Bureau.)
Source: 2022-2023 Real Estate Income Report. McKissock Learning by Colibri Group
Real estate agents who invest in professional development reported earning an average of $72,474 than those who don't, according to report, which cited data from the National Association of REALTORS®. "Considering the median amount spent on professional development for real estate agents if $680 a year, that's an impressive return on investment," the report noted.
Agents who focus on specializations or designations earn more than their "generalist" counterparts. Full-time agents who specialize in green (eco-friendly) properties earned $263,180 during 2020. Among other specialties that yielded above-average incomes were foreign investment ($183,774), luxury real estate ($183,482), and affordable housing ($168,900).
In addition to income comparisons based on hours worked per week, years of experience, and specialties, researchers also asked about level of education, investments in professional development, retirement plans, agent-brokerage satisfaction, and predictions on the future of the industry.
Among other findings, the report listed:
- Three-fourths of agents (75%) earned more in 2020 than the year prior.
- Nearly as many (74%) said they have no plans to switch brokerages within the next two years.
- More than four of every 10 agents (42%) have a bachelor's degree.
- Seven of every 10 agents do not plan to retire in the next five years.
- A whopping 92% of agents are optimistic about their career.
McKissock Learning is part of Colibri Group, which provides learning solutions for licensed professionals in various fields, including real estate, property appraisal, engineering, nursing, mental health, massage therapy, and cosmetology. Operating under a family of brands in 50 states, it offers an estimated 5,000 courses.