How Much Do Real Estate Agents Make In Kansas
Like Dorothy said in The Wizard of Oz “we’re not in Kansas anymore”…or at least not the Kansas of the 1930s. Kansas has moved on from being a primarily agricultural-based state to encouraging the growth of other thriving industries. With this also came the development of a significant real estate industry.
From high rise apartments in Kansas City to historic houses in Wichita, the Sunflower State has a little of everything. Let’s take a look at how much a real estate agent makes in Kansas, the factors affecting this figure, and how you can get your real estate license in the State of Kansas. Keep on reading!
So How Much Does a Real Estate Agent Make In Kansas?
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, the local and national economy, as well government policies.
According to recent data, the annual mean wage of realtors in Kansas was $46,640. However, this may vary widely even within the state, as we explain later in this article. Let’s take a closer look at some of the key factors that affect just how much real estate agents make in the state of Kansas.
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 Kansas makes. They include:
Location
If there’s one factor that affects property value, it’s location. In fact, most real estate agents believe that location may be the single most important driving factor when it comes to pricing a property, whether residential or commercial. Things such as demand for the property, accessibility, local commercial appeal, development potential and lot size can have significant effects on the value of a property.
So why is this important when considering how much a real estate agent makes? Well, real estate agents are paid on a commission basis. They are paid a percentage of the value of the property for which they facilitated the sale or purchase. So location is probably the top factor affecting how much a real estate agent makes.
Years of Experience
There’s a reason why it seems like real estate agents who have more years of experience are doing better in the business than their younger counterparts. It’s most likely because they’ve had the time and opportunity to learn the intricacies of the industry. They’ve built strong professional networks, earned the trust and now have the leverage to negotiate better dealers for both themselves and their clientele.
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 Agency
Your broker plays a key role in determining your income as a real estate agent, especially as a budding agent. Brokers are so important that some states even require that you be registered with a sponsoring broker before you are allowed to take the real estate exam.
Before joining an agency you will be required to sign a contract that outlines key details such as how commissions will be shared, the bonuses you’re eligible to receive for hitting certain targets and in some cases may even involve a fixed salary structure as well.
This commission is shared between you and your broker based on an already agreed ratio known as the commission split. This may differ based on several factors such as your broker, level of experience, the amount of money involved in the deal and so on. A common commission split is 70 percent to the agent and 30 percent to the broker.
While some experienced agents don’t see the need to split their commission with a brokerage firm, for new real estate agents such relationships are very important. This gives you time to learn the ropes and further build your professional network, two factors that also contribute significantly to your income.
Related: How To Become A Real Estate Agent In Kansas
Your Qualifications
As they say, the world is moving into an era of specialization. To stick out above the crowd you need to possess a skill that your competition doesn’t. The same holds for the real estate industry as well. Gone are the days when a real estate agent was simply a salesperson who helps clients buy and sell a property.
Now to make it in the industry you must possess skills and qualifications that put your services in high demand. 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.
Hours Put In
Like most jobs, the more hours you invest, the more you expect to make at the end of the month. Agents who put in more time on average have larger returns and there are studies to back this.
Research showed that agents who put in an average of 40 to 50 hours of work a week can expect to make around $68,000 a year. But agents who spent between 51 to 59 hours a week working could expect to earn around $85,000 per annum. So those late nights do pay.
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
This is another factor that is somewhat related to location but on another scale. 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, each of these may 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 have a significant impact on the housing market. Policies that encourage property buying such as low-interest rate mortgages and Government Sponsored Enterprises stimulate 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.
Policies like restricting access to private mortgage insurance and increased interest rates restrict the housing market.
How To Get Your Kansas Real Estate License
Getting your real estate license in Kansas is a straightforward process. But first of all, there are several criteria you must qualify for and a few steps to follow. These include:
- Be at least 18 years of age
- Have a high school diploma or GED
- Complete 60 hours of approved Pre-Licensing education
- Pass the course final exam
- Complete the background check requirement
- Pass the Kansas Real Estate Examination
- Choose a sponsoring broker
- Complete your real estate application
The entire process from starting your pre-licensing courses to receiving your license may take several months, depending on your schedule and other factors.
Click here to get more information on Kentucky Real Estate Pre License Classes– Real Estate School.
In Conclusion
The real estate market in Kansas 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 Kansas and start your journey into the housing industry.