The real estate market in California presents amazing opportunities to real estate agents in this area. With an impressive housing turnover rate, agents who position themselves to take advantage of these opportunities will not only advance their careers but also earn much better. However, the first step would be to ask yourself the question “How much do real estate agents make?” At Ashby & Graff Real Estate, we have a different business model that is aimed at making sure that our agents enjoy salary satisfaction. 

Average real estate agent salary
Generally, it takes time and effort for any real estate agent to grow their business. During the early years, a first-year real estate agent is likely to earn very little as they learn the business and build a client base. However, this change over time, depending on the seniority of the given real estate agent. How much a real estate agent in California earns will depend on how many transactions they complete, the commission that will be paid to the brokerage as well as the sponsoring broker’s commission splits. Salaries also depend on whether the agent is working on a full-time or part-time basis. 

With the booming property market in the area, the average annual real estate agent salary in California is in the neighborhood of $65,000. Salaries for real estate agents start from around $23,000 and go to a maximum of over $118,000. This is because a starting real estate agent will earn $11 an hour while a top end real estate agent will earn up to $56 an hour. 

While there are no standard commissions and they can always be negotiated, 6% total commission is not uncommon to see in California. With the average house in Los Angeles, for instance, going for about $780,000, the total amount that will be paid as commission is $46,000. The commission will be shared among brokers on either side as well as the listing agent. However, the average home price in California stands at a lower figure of $409,000. As such, commissions may be significantly lower depending on the location of the property. It follows that the more transactions a real estate agent completes, the more they earn in terms of commission. 

A different business model to help you earn more
Apart from being commission-based, a good number of employing brokers require that real estate agents split their real estate commission with them. In most cases, the broker will get between 30 and 40% of the commission. This means that agents have to work harder to make a reasonable amount of money. 

Ashby & Graff Real Estate has a value proposition of 100% commission splits. Under this business model, rather than having to pay the employing broker a certain percentage of the commission received, a real estate agent will keep the entire commission that they earn after they have completed the transaction. As a brokerage, we will only deduct a small transaction fee from this amount. With 100 commission real estate commission, agents will be in a position to earn better for their efforts. 

Under this business model, real estate agents will not only be able to cover their expenses but are also likely to have more salary satisfaction. In addition, those who sell real estate part-time will still have enough money to sustain themselves.