When considering a career change, most people think about how much money they may make from working the new job. Before you apply online for a license with the North Carolina Real Estate Commission, it would benefit you to learn how much real estate agents make in North Carolina.
But before we dive into the data, please let us give you an overview of how most real estate agents make money.
How Real Estate Agents Make Money
Real estate agents make money through commissions earned from helping clients with their real estate transactions.
When a real estate agent helps a client buy or sell a property, they earn a commission based on the final sale price. The standard commission rate in the U.S. is typically around 5-6% of the sale price, which is then split between the buyer’s agent and the seller’s agent. These percentages can vary, and some agents may negotiate their rates with their clients.
Listing Agent’s Commission
If the agent represents the seller, they receive a portion of the total commission paid by the seller. It’s important to note that a portion of the listing agent’s commission goes to their brokerage. (More on this later!)
In exchange for this portion of the sale amount, the listing agent completes the tasks necessary to sell the property.
For example, the listing agent helps the seller determine an appropriate listing price for the property by conducting a comparative market analysis. They market the property to potential buyers and list it on the Multiple Listing Service (MLS).
A listing agent also advises sellers on preparing the property for sale. This may include recommendations for home staging, repairs, or cosmetic improvements to make the property more appealing to buyers.
Once the property is on the market, listing agents coordinate showings for potential buyers. When offers come in, the listing agent represents the seller in negotiations with potential buyers or their agents. They work to secure the best possible terms for the seller, including the sale price, closing date, and contingencies.
A listing agent’s job isn’t done once an offer is accepted. At this point, the listing agent completes and submits the necessary paperwork and contracts. They help coordinate home inspections and appraisals and may help address any issues that arise from these inspections.
Finally, the listing agent remains involved throughout the closing process to ensure a smooth and successful transaction.
Buyer’s Agent’s Commission
If the agent represents the buyer, they receive a portion of the total commission paid by the seller. In return for this commission, a buyer’s agent finds and shows homes to their clients and represents the buyer during the negotiation process.
The buyer’s agent’s commission comes out of the total commission and is typically shared between the buyer’s agent and their brokerage.
Commission Splits
It’s important to note that real estate agents are typically independent contractors working under the umbrella of a real estate brokerage. As we mentioned earlier, the commission earned by an agent is usually split between the agent and the brokerage.
Keep in mind that commission structures can vary and change over time. For example, when starting out, you may agree to a 70/30 or 60/40 split, with the bulk of the commission going to the brokerage. In some brokerages, you could also be offered a sliding scale commission split that gets more favorable to the agent the more they sell. Some brokerages are going to the salary model.
Now that you understand HOW real estate agents in North Carolina get paid, let’s discuss how MUCH they get paid.
How Much Do Real Estate Agents Make in North Carolina?
Real estate agents in North Carolina make an average of $98,358, according to Indeed. This data is based on 1,400 reports from real estate agents living in NC as of October 2023.
However, this data doesn’t include the average hours the real estate agent put in to make almost 100 grand. Many people use real estate as a side gig and complete the work on evenings and weekends – when most people are available to look at properties.
According to a recent study by industry insider Colibri Real Estate, the average salary of a part-time real estate agent in the U.S. is $54,766. Full-time agents earn an average salary of $156,970.
How to Become a Real Estate Agent in North Carolina
Do you like the idea of being your own boss – in charge of your own destiny? Then real estate may be the right industry for you. Whether you plan to work in real estate part-time or full-time, the first thing you need to do to get started is enroll in pre-licensing classes.
Colibri Real Estate is a top-rated online real estate school. We have partnered with Superior School of Real Estate in North Carolina to offer in-person classes, self-paced online courses, or livestream classes. No matter what method you choose, you’ll enjoy learning from the state’s most esteemed real estate instructors and access to career coaching.
Get started today, and just a few months from now, you could earn your first commission check. Good luck on your new career!
