Ohio Realtor Earning Potential
September 21, 2021
Real estate and property management can be a very appealing career path for a lot of people. The promise of high-earning potential often inspires career changes. The industry itself has many aspects a dedicated individual can readily pick up on. If you find yourself considering a career shift to real estate, here are some things you might consider before making a commitment.
What Does a Realtor Do?
The terms for those in the industry are often used interchangeably. If you are considering shifting to a career as a realtor, the distinction can be very important. Real estate agents often work for a broker or a brokerage firm. They are licensed to assist people with real estate transactions, which cover purchasing, selling, and renting property. Successful sales get them a commission payment. They mostly function as salespersons. Brokers have additional licensing and training that allows them to work independently or put up their own firms. A realtor is a real estate professional who is a licensed member of the National Association of Realtors. As such, they are bound by the NAR’s Code of Ethics.
On average, real estate agents can earn a yearly salary of $35,190. Salaries can start at around $20,930 and as high as $80,400. In 2021, the average realtor’s yearly salary in Ohio is $73, 887.
Realtor commission is often the costliest part of selling a home, and they usually take around 5.84% aa commission. For example, if you were to sell a house in Ohio worth $184200, you can make up to $10,800 in realtor fees. These stats account for full-time real estate agents, brokers, and realtors. Part-timers will likely be earning closer to the average or lower end.
Factors Affecting Commissions
Your earning potential as a realtor can be affected by several aspects. Property values can go up and down due to many factors so your commission rates can vary.
During a property transaction, there are usually two agents involved. One represents the seller and the other the buyer. Both earn a percentage or a commission from the final agreed-upon price. This is usually included in the sale price. The average commission split is usually 50.5%-49.5% in Ohio, with 50.5% going to the seller’s agent and 49.5% going to the buyer’s agent.
At the start of your realtor career, it might be difficult to earn a lot of money right away. You may take time to learn the ropes as well as how to manage the commission splits with both the other party’s real estate agent and your brokerage firm. With time, experience, and a built-up client base you can eventually bring in a lot of business and improve your earnings.
How to Boost Your Earning Potential as a Realtor
As a realtor, you are practically running your own business. Your income can be dependent on how much you diversify your assets and services. You will definitely want to set yourself apart from the competition
You can increase your income from sales and commissions by offering additional services such as inspections, property management, and market evaluations.
A lot of your earnings can depend on how often you can get leads. The more leads you get, the more sales you can close and the higher your salary.
Cultivating a good relationship with your clients can greatly improve your customer base. It helps to find an efficient way of keeping track of your client information as well as establishing communication better. This allows you to grow your network, which can help generate leads.
Getting your brand noticed is extremely important in growing a customer base and generating leads. Depending on your target market, you can opt for both traditional and social media marketing means. Each one has pros and cons so finding an effective marketing strategy will pay off once leads come in and your network is expanded. Being able to tell the market that your services are available can help grow your business. You can also opt to invest in search engine optimization services to improve your visibility.