Money is a powerful motivator, and it’s among the top reasons many people have for getting a real estate license. But being a North Carolina real estate broker is not your typical 9-to-5 job. In this article, we will explore just how much you can earn as a real estate agent in North Carolina and provide insights into the earning potential in this field.
How do real estate brokers get paid?
Most real estate brokers in North Carolina earn their income through commissions based on the sale price of a property. The commission rates are negotiable and can range from 1% to 10%. Let's take a 5% commission rate as an example. If a property is sold for $250,000, the commission paid upon closing would be $12,500.
However, it's important to note that the broker doesn't walk away with the full commission. The managing broker or broker-in-charge, who oversees the brokers, will receive a portion of the commission. The most common arrangement is a commission split, where a certain percentage is paid to the broker-in-charge and the remaining percentage to the broker. Assuming a traditional 50/50 commission split, each would receive $6,250 at the closing of escrow for that one property.
With this example in mind, a real estate broker who closes one property per month could make $75,000 per year. However, this is just the tip of the iceberg. Real estate brokers who are dedicated and have a deep understanding of their market have a much higher income potential. With more closings per month, their annual income could easily reach $150,000 or more.
How do real estate brokers-in-charge get paid?
As a North Carolina real estate broker-in-charge, the earning potential is even greater. You not only earn from your own commissions but also from the brokers who work under you. By holding the real estate license of the brokers and providing them with office space, you collect a part of the commission split from each broker in your brokerage.
For example, if you have five brokers in your office and each closes one deal per month, you could be making $31,250 per month without ever showing a property yourself.
There is plenty of income potential as a North Carolina real estate broker
Whether you are a broker or a broker-in-charge, the income potential in the North Carolina real estate industry is enormous and is only limited by your willingness to work at it. As a broker, your experience and extensive knowledge of the real estate market will allow you to earn an income you never thought possible. And as a broker-in-charge, surrounding yourself with experienced and knowledgeable brokers can build a fortune.
If you are thinking about starting a real estate career in North Carolina, Superior can help you get started. They have a proven track record of helping new agents pass the North Carolina real estate licensing exam on the first attempt. Attend one of their career nights, read the Superior Plan, and take their 75-hour pre-licensing course (approved by the North Carolina Real Estate Commission) to kickstart your real estate career.
Image: Real estate agent at work
