How Much Do Real Estate Agents Make in Ohio?

The real estate industry in Ohio has always been an attractive career choice for many individuals for several key reasons. The flexible hours, great networking opportunities, and the freedom of unhindered potential upward mobility made the profession a typical example of the “American Dream”. However, there’s something else that makes being a real estate agent so attractive…the unlimited pay cap.

The State of Ohio may not sit at the top half of the list in terms of landmass, but it is ranked as the seventh-most populous and tenth-most densely populated state in the US. This means that the real estate industry is very active within the state and studies have shown that population density has a positive impact on property prices.

So do you want to know how much real estate agents make in Ohio? Well, keep on reading as we answer all your questions on how much realtors make in the state, the factors affecting this figure, and how you can quickly become a licensed realtor in the State of Ohio.

So How Much Does a Real Estate Agent Make In Ohio?

There are a lot of things that affect how much real estate agents make. Factors like years of experience, education, your niche, and which area they operate within are very important. Other significant details that you have to consider are brokerage fees and commissions. Usually, this is a fixed percentage between you and your brokerage.

According to data from the U.S. Bureau of Labor Statistics, the annual mean wage of realtors in Ohio was $32,770-$52,650 with an average of $49,120 as of May 2020. However, it is also important to consider the impact of the pandemic on the salaries of realtors all over the country.

With the economy making a strong recovery, another source had the average salary at $77,401 as of January 2022, before the onset of the pandemic. However, this may vary widely even within the state, as we explained later in this article.

Factors Affecting How Much A Real Estate Agent Makes

Let’s take a closer look at some other important factors which may affect how much a realtor in Texas makes:

Location

As we mentioned previously, the average earnings of real estate agents can vary widely within a single state. Things such as the local economy of the city or suburb you operate in and the demand in the housing market within the area can lead to large differences in the average salary of realtors over time.

To further support this point, the highest paying city within Ohio, Toledo, had an average salary of $91,455 per year. This was 13.7 percent higher than the 9th city on the list, Columbus, and almost doubled that of the state average. This shows how important a realtor’s location is when considering their annual income.

Your Agency

Though not all Realtors work for an agency or broker, a significant number do, especially new agents.

Of course, in exchange for this luxury, for every deal you close – whether a buy or a sale – your broker receives a part of your commission. This commission is split between you and your broker based on an already agreed ratio. A common commission split is 70 percent to the agent and 30 percent to the broker.

Also, though most agents are paid solely based on commission, some brokers offer base salaries as well. This may also add an extra boost to their salary as long as the bonuses they may get for achieving certain targets or closing prominent deals. This depends strongly on your contract with your broker.

Years of Experience

There’s a good reason the salaries of real estate agents vary significantly based on their years of experience. More time put into the profession is usually a good indicator of more experience, better professional qualifications, and a stronger network. It also means more time to build your reputation and achieve stronger leverage to negotiate better deals with brokerages.

For example, a 2019-2020 study showed that the average income of a Realtor more than tripled after the first year. The same study also showed agents with 4-10 years of experience had an average income of $63,595. Also, those with over 10 years of experience earned over $100,000 a year.

Your Qualifications

Calling a real estate agent “someone who helps people buy and sell houses” is a serious undervaluing of the potential expertise and services. These services may extend far beyond simply advertising properties and finding the best deals for clients. Real estate agents may also provide other services.

Property management, commercial property investment, and land consultancy are just a few of the many areas realtors can specialize in. These qualifications build your reputation, increase your expertise and allow you to provide better quality service to your clientele. They also allow you to charge more for your services than Realtors with lesser qualifications.

The Economy

The housing market is affected significantly by the economy at a local, state, and national scale. The pandemic illustrated this point clearly with the effect it had on the housing market.

Statistics showed a drop in new home listings by over 40%, a 25% increase in delisting’s, and a fall in queries for agents, online search activity, and offers made – which are all important measures of demand in the housing market- during the height of the lockdown.

During times when home sales have been at their lowest – such as the 2008 housing market crash – the average salaries of Realtors fell nationwide. So when the economy struggles or the housing market stagnates, it is natural that Realtors should notice a dip in their income. This also means that realtors operating in cities with a thriving economy are more likely to earn a higher annual salary.

Area of Specialization

Realtors may specialize in residential properties, commercial properties, or other specialized areas of real estate. With each niche comes its respective skills and peculiarities. However, these may also affect how much real estate agents within the state make.

Commercial properties are on average more valuable than residential properties. This means that realtors who specialize in commercial properties on average make more than those who specialize in residential properties. Of course, this does not mean that residential properties are not profitable.

Government Policies

Government policies on a local, state, and national level also have a significant impact on the housing market. Bank interest rates and loan qualifying criteria largely determine the ease at which buyers can access the loans they need to purchase a property.

Therefore, policies that encourage property buying such as low interest rates and Government Sponsored Enterprises – like Fannie Mae and Freddie Mac – stimulate the housing market. Policies like restricting access to private mortgage insurance and increased interest rates restrict the housing market.

How To Get Your Ohio Real Estate License

Getting your real estate license in Ohio is a straightforward process. But first of all, there are several criteria you must qualify for and a few steps to follow. These include:

You must be 18 years of age and must have a GED or a high school diploma
Select your Ohio State-Approved Real Estate School and Sign up for Classes
Complete all 120 Hours of your real estate Classes
Find the right broker to partner with
Complete your salesperson state application
Complete and Pass your background Check
Schedule your exam
Pass the Ohio Real Estate Exam

The entire process from starting your pre-licensing courses to receiving your license may take about 3 months, depending on your schedule and several other factors.

In Conclusion

The real estate market in Ohio is a lucrative industry. All you need is time, dedication, and a lot of hard work. However, with the drive and determination to constantly improve yourself and your network, you’ll be making a decent salary in no time. So what are you waiting for? Click here to learn more about the requirements needed to become a real estate agent in Ohio and start your journey into the housing industry.

References:

https://empireofrealestate.com/2021/03/11/how-to-become-a-real-estate-agent-in-ohio/