When considering a new career, the first step is determining whether the industry aligns with your interests and skills. If you’ve already decided that real estate is the right industry for you, it’s time to get started! However, a key question for anyone contemplating a career change is, “What is the average starting salary for real estate agents in Ohio?”
Salaries in real estate are unique because agents typically earn negotiable commissions rather than a fixed salary. This structure appeals to many, as it offers the potential for unlimited income. Commission sales are particularly attractive to those who have previously worked hard without significant financial reward. However, this also makes it challenging to predict an average starting salary. So, let’s explore the entry-level real estate agent salary in Ohio.
Key Takeaways: Entry-Level Real Estate Agent Salary in Ohio
- The average salary for real estate agents with 1 to 3 years of experience is $39,100.
- A real estate agent’s income depends on various factors, including location, expertise, brokerage commission split, and market conditions.
- The entry-level real estate agent salary can be maximized by following best practices.
Overall Expectations for Real Estate Starting Salaries
Starting salaries in real estate can differ significantly based on numerous factors, such as whether you work full-time or part-time, your geographic location, your specialization (residential, commercial, luxury, etc.), the company or brokerage you join, and your particular role. After all, only some people in real estate work as commissioned salespeople. You might instead find a position as an appraiser, a property manager, or within a real estate development firm.
Let’s take an in-depth look at the factors that influence the income of beginning real estate agents.
Average Starting Salaries for Real Estate Agents in Ohio
The average starting salary for real estate agents in Ohio with 1 to 3 years of experience is $39,100, according to the 2023-2024 Ohio Real Estate Salary Guide. Find out more interesting statistics, such as how income changes with the number of hours worked, by downloading this free report.
Factors Influencing Real Estate Agent Salaries
Here are some factors influencing an agent’s starting salary.
1. Location
A real estate agent’s commission is usually tied to the property’s sale price. So, agents in Cincinnati’s Terrace Park tend to make more per transaction than those working in areas with lower real estate prices. However, location is not the only factor affecting a first-year agent’s income. Agents who sell many residential properties or focus on the commercial market can succeed regardless of location.
2. Experience and expertise
As you look through the income report, you’ll see that real estate agents with 11-25 years of experience report significantly higher incomes than those just starting. This is expected since experienced agents generally have a more extensive network and client base, making it easier for them to find leads.
Additionally, agents specializing in investment and commercial properties report higher earnings than those in other niches. This doesn’t necessarily mean that new agents in Ohio should avoid residential real estate. However, honing in on a specific niche could be a strategy to increase income.
3. Brokerage agreement and commission structures
Another critical factor in determining your first-year earnings as a real estate agent is your agreement with your brokerage. New agents often must give a more significant portion of their commission to the brokerage in exchange for training and resources. This percentage typically decreases as agents gain independence.
4. Market conditions
Lastly, market conditions also impact an entry-level real estate agent’s salary. Interest rates, housing inventory, global events, and home prices can affect earnings. Similar to most industries, real estate goes through ups and downs.
However, postponing obtaining your real estate license until the market is perfect is not advisable. It’s better to build your brand and network so you are prepared to take advantage when the market heats up in your area.
FAQ: How much do real estate agents make per sale?
Real estate agents don’t have a fixed commission rate, as it’s always negotiable. Traditionally, both buyers and sellers agents have earned between 2% and 3% of the property’s sale price, which is then shared with their brokerages. Alternatively, some real estate agents charge a flat fee for their services rather than basing their income on the sale price.
Strategies for Maximizing Earning Potential Your First Year
If you are starting your real estate license courses or have already passed your licensing exam, do yourself a favor and sign up to receive Hondros College’s Real Estate Career Starter Kit. Our kit contains actionable strategies to maximize your earning potential immediately.
Here are a few of the topics our starter kit covers:
Building a Strong Online Presence: Establishing a professional online presence is easier said than done. However, we’ll teach you how to leverage your existing contacts, which is a great way to get started in the industry.
Networking Effectively: Networking not only helps you connect with potential clients, but it’s also essential to establish connections with other agents and industry professionals, leading to referrals and business opportunities.
Targeting Niche Markets: While there’s undoubtedly high-income potential in residential real estate, you may focus on luxury, investment, or commercial properties.
Focusing on Education and Training: Hondros College offers the classes you need to get licensed, renew your license, and upgrade your license. We also offer courses that help you grow your business. Hondros College provides in-person, livestream, and at-your-own-pace online real estate license courses. We have helped hundreds of thousands of agents from all over the region.
Contact a career advisor today to learn more about how Hondros College can help you get your real estate license and earn more than the average starting salary for a real estate agent.
