A career in real estate can be extremely lucrative, but it will take a lot of work and a bit of time to rise to the top-earning ranks. The good news is that Tennessee real estate professionals earn comparable—if not higher—salaries than in many other states. Learn more below about earning potential as a first-time real estate agent or an experienced agent considering moving to the Volunteer State.
Understanding Real Estate Commission in Tennessee
Real estate agents work on commission, and it is unusual for agencies to pay a regular salary beyond that. A traditional salary is a fixed amount that employees receive weekly, bi-weekly, or monthly. Income in the form of commission, on the other hand, is earned based on the completion of a task. In real estate, that figure would be based on the closing price of a home or property. Without a sale being finalized, a real estate agent typically won't earn any income—but this also means that a successful real estate agent has unlimited earning potential.
Also known as affiliate brokers, Tennessee agents collect an average of 5.6 percent commission on each sale, just over the national average of 5.49 percent. However, each broker sets the commission rates for their agents.
When working in an agency as part of a team, splitting the commission among the agents involved is not unusual. Typically, at least two agents are involved in transactions: the selling agent that lists the property and the buyer's agent. In Tennessee, the standard is currently set at a fair 50/50 split of the commission. It is also essential to remember that brokers collect a portion of each agent's commission.
Average Real Estate Agent Salaries in Tennessee
According to Indeed, Tennessee real estate affiliate brokers have an average annual income of over $89,000. To hit this goal, an agent must sell at least 17 properties yearly at the current median prices across the state.
However, several factors significantly impact just how much a real estate agent in Tennessee will earn. A primary one involves experience. Referencing the same report from Indeed, agents with one or two years of experience earn an average of around $80,000 a year. Agents with ten years of industry experience earn an average of over $105,000 yearly.
Location is another factor to consider when calculating earning potential in Tennessee as a real estate broker affiliate. For example, one of the hottest markets in real estate is in the greater Nashville area. Buyers are eager to call an upscale suburban property around Nashville home, and they sell at higher price points.
Choosing a location carefully by searching for the most lucrative markets will affect the overall annual salary. Stay on top of the fastest-growing areas. They tend to have less competition, which can boost earnings rather rapidly, especially as they expand and new housing and businesses are built.
How to Boost Earning Potential as a Tennessee Affiliate Broker
No matter where an agent chooses to sell or how long they've been licensed, there is always room to boost earning potential. While it will take some effort to optimize annual earnings, the ability to do so is one of the primary advantages of becoming a real estate affiliate broker!
Determination and commitment are required to get ahead—and stay ahead—in the real estate scene. Agents must consciously take time to grow their influence in the community and get their name out there locally.
Networking in real estate is one of the most effective ways to connect with other businesses, organizations, and community leaders. Becoming a member of the local Rotary Club is an ideal first step to begin networking efforts.
Essentially, working harder to connect with individuals in the local community can ultimately be more beneficial than working harder to sell homes. The more an agent's name and reputation get passed on to other agents and buyers, the more likely their name will make it to others needing their services.
Ready to Start Learning and Earning?
Whether you are considering enrolling in real estate classes, are newly licensed, or are planning to move to Tennessee to buy and sell properties, now is a great time to get into the scene. Housing prices are high, and commercial properties are popping up throughout the state, especially in the most populated cities. The Volunteer State welcomes you to join the ranks of real estate agents making above-average annual salaries. Contact The Ashton Real Estate Group to learn more about becoming an agent with Tennessee's #1 real estate team!
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