How Much Do Real Estate Agents Make in Texas?

How Much Do Real Estate Agents Make in Texas?

[vc_row][vc_column][vc_column_text]Are you considering a new career in real estate? Starting a real estate business as an agent is exciting, but it takes a fair amount of preparation before getting started. New agents must build their businesses from the ground up. That means that you will have to invest in yourself and be patient as you work toward earning a return on that investment. Making a lot of money as a Realtor® in Texas is possible, but keep in mind that it’s your commitment that determines your success. Before we dive into real estate agent salaries in Texas, let’s put everything into perspective by reviewing the national average. The National Association of Realtors® (NAR) reports that Realtor® salaries have consistently risen over the past few years. Across the United States, the median gross income of Realtors® is $41,800. The Bureau of Labor Statistics reports that the mean average income of real estate agents in Texas is $70,520. Remember, these numbers are averages and they account for salaries in areas that have small populations and low property values. Depending on your market, your income potential as a Texas real estate agent may be much higher than the averages indicate.

Where is The Top Paying Metropolitan Area in the Nation?

According to the Bureau of Labor Statistics, the highest paying metropolitan area for real estate agents is Midland, Texas. Located in Northwest Texas, Realtors in this area have an average mean wage of $111, 560. That means there are agents in Texas that out-earn their counterparts in New York City, Newark, New Jersey and San Francisco!

Texas Markets with the Highest Mean Income for Real Estate Agents

To get a better idea of your earning potential in Texas, we will explore the annual mean wages for real estate agents in the larger metropolitan areas.

Houston – Sugar Land – The Woodlands

The annual mean wage of real estate agents in Greater Houston is $74,830. Agents in Houston self-reported income as low as $25,000 and as high as $92,000 to Glassdoor.

Austin – Round Rock

The annual mean wage of real estate agents in Greater Austin is $70,470. Austin area agents self-reported income to Glassdoor as low as $8,000 up to $76,000.

Dallas – Fort Worth

The annual mean wage of real estate agents in the Dallas – Fort Worth metro area is $78,130. These agents self-reported income from $46,000 to $136,000.

San Antonio – New Braunfels

The annual mean wage of real estate agents in San Antonio – New Braunfels is $56,450, making it the lowest of all the major metro areas in Texas. However, agents in these areas told Glassdoor that they make anywhere from $22,000 to $161,000!

How to Be a High Income Earner as a Texas Realtor

Invest in your online presence early

According to the NAR’s most recent publication of “Real Estate in the Digital Age,” 87% of home buyers work with agents, but 93% of them begin their journey with online searches. Agents need to budget for a fully-customized branded website that features the MLS as soon as possible. Adding a blog to share your expertise is another way to increase your online visibility and help generate more leads.

Establish a social media page for your business

47% of Realtors told NAR that social media was the best tool for sourcing high quality leads. You should frequently use your social media accounts to interact with clients, show your listings, and let clients get to know you as an individual.

Make a substantial time commitment

Being a real estate agent is not a career, it’s a business. You’ll have to think like an entrepreneur and always look for ways to grow and outpace your competition. Especially in the beginning, you will need to network with other agents and find creative ways to connect with your future clients. Your sponsoring broker may give you new leads, but they are not going to be working to build your brand; that’s your job. When you’re not working on finding new business, you will have to be available to answer questions and show properties. To be a top earner in real estate, sacrificing time to pour into your new business is imperative.

Find a mentor

One of the most vital assets new agents may ever have is a mentor. A great mentor’s role is to offer you advice and feedback when you ask for it. It will suit you to find someone who is open to communicate and has time to guide you on your journey to success. Of course, you will be drawn to other agents who are successful, but try to find someone with similarities and common interests. When a strong mentor has your back, you won’t fall victim to some of the costly mistakes that plague new agents.

Try breaking into high end markets

The Real Estate Center at Texas A&M University defines a luxury home as a home that is priced at $1 million and higher. In their most recent publication of the “Texas Luxury Home Sales Report,” they reported that between November 2018 – October 2019, $8.3 billion of luxury homes sold in Texas. The report also states that 5,149 luxury homes sold meaning the average sales transaction was $1.6 million. If an agent’s commission was 2.5% with a 70% take-away, that agent would make $28,000 on ONE sale. Selling high end real estate is lucrative, but breaking into the market requires strong sales skills and connections.  Schedule a meeting with a luxury broker in your area to determine if you’re a good fit.

Is It Practical to Sell Real Estate Part-time?

In short, this is not the best way to grow a new real estate business. Growing your business part-time may work out for your schedule, but it is not the most practical path to take if you want to be a high dollar earner. If your priorities are flexibility and work-life balance, being a part-time real estate agent may work for you. how much real estate agents make ?

(Source: Bureau of Labor Statistics)

MSDS Entrepreneurs is committed to helping real estate agents sell more houses. For a complete look at the services we provide, visit our Realtor Solutions page.

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