First, let’s define REALTOR and Real Estate Agent. A real estate agent has a license to sell real estate. A REALTOR is a real estate agent that has joined the National Association of REALTORS (NAR). So, all REALTORS are real estate agents, but not all real estate agents are REALTOR. Now that we have gotten that out of the way…
According to Indeed.com, the average base salary in for a real estate agent in Indiana is $85,090.
Low $45,626
Average $85,090
High $158,687
However, it isn’t a simple answer, because a real estate agent’s income is dependent on several different factors:
Market conditions
Commitment to the career
Hours worked
Location
The Brokerage
Niche/ specializations
Years of experience, and more.
Market Conditions
Unfortunately, market conditions are out of the control of the agent, and they can be favorable to the agent, or unfavorable. If the conditions are not as favorable, it might take some adjustments by the agent to keep the income that is desired. You might like: Ways to Make Money with a Real Estate License (Without Selling a Home)
Commitment to the Career
As with any industry, the level of commitment someone puts to their career plays a huge role in the income that is enjoyed. This could involve aspects like:
Constant prospecting and marketing
Becoming a local expert
Consistent follow up on leads and data base
Using technology effectively
Many of these aspects work together-- an agent might become a local expert, gain leads through prospecting and marketing, and follow up on social media. Be sure to check out: Turn Your Passion for Social Media into a Successful Real Estate Career.
Hours Worked
For most real estate agents, income can be closely tied to the number of hours worked. Obviously, this can create pay gap between part-time and full-time agents solely based on the hours put into their career. That being said, many find it beneficial to start out in real estate part time to make the switch, while keeping the income from their current job. Check out Can You Sell Real Estate Part Time?
Location
Average income for real estate agents is highly variable based on region, state, city, and the health of their local market. In general, if you want to earn more, you need to work primarily in urban or suburban areas where the average cost per home is higher. Different cities in Indiana have varying average salaries. Learn about Why Do People Choose a Real Estate Career
The highest paying cities for Real Estate Agents in Indiana:
South Bend, IN $106,499 per year
Lafayette, IN $102,640 per year
Bloomington, IN $95,699 per year
Indianapolis, IN $90,115 per year
Greenwood, IN $87,428 per year
Avon, IN $83,947 per year
Evansville, IN $82,277 per year
Fishers, IN $81,710 per
Fort Wayne, IN $81,453 per year
The Brokerage
The brokerage that is chosen could affect an agent’s income. Fees and commission splits vary greatly by firm, offering a consistent split, tiered split, or 100% to the real estate agent scenario.
A firm may charge agents certain fees, or offer profit sharing or bonuses. There are also intangible factors such as reputation and business culture. You might want to read: How to Choose the Best Brokerage for You. Here are some things to consider:
Fees and commission split
Good reputation
Administrative support
Firm marketing
In-house listings
Training and mentorship
Equipment
Rewards for recruiting
Lead generation
Niche / Specializations
Real estate agents can specialize in different areas of real estate. Specialties can be broad, like commercial, or a type of real estate, such as horse property, luxury homes, or condos. And, these niche markets can be valuable. The National Association of REALTORS (NAR). Estimates that some of these Niches can nearly double the potential income. Learn more about Low-cost (and no-cost) ways to grow your real estate business.
Here are a few niche markets where you can get a certification, but there are many.
Years of Experience
Agents who stay with it through within their first year start to see it payoff within the first 12 months. During that time, they can gain valuable experience, and get the training they need.
Indeed.com breaks down the income per years of experience:
1-2 years: $76,713
Over 10 years: $100,652
There are other variables to consider, such as what career path in real estate you have chosen.
If you look at all of these factors, and consider these within your circumstances, you can have a more accurate estimate of the income you might earn as a real estate agent. The statistics are pulled from Indeed.com and other salary comparison sites; however, it is not a guarantee of how much money you will make, or could make, as a real estate agent. You are encouraged to do your own research to feel comfortable with your answers. You might enjoy: The Future Job Security of for Real Estate Agents.
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