How Much Do Real Estate Agents Make In Florida

Working in the Sunshine State certainly looks like every real estate agent’s dream. Sunny skies, whites sands and of course luxurious beachfront properties that you can market to affluent retirees. What more can you ask for?

Florida is an international tourist destination and has been consistently ranked as one of the top real estate destinations in the US for years. It has a widely diverse economy and a government that is strongly pro-business with a GDP growth of 48% in the last decade. Florida is also the 3rd most populated state in the country, meaning that demand for housing is strong and rising constantly.

Let’s take a look at how much a real estate agent makes in Florida, the factors affecting this figure, and how you can get your real estate license in the State of Florida.

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

When it comes to annual income, location and the local demand for a landed property aren’t the only factors that affect how much a real estate agent makes. Things like experience, brokerage policies, qualifications and even local politics can have a profound effect on just how much a realtor makes at the end of the year.

According to the Bureau of Labor Statistics, the annual mean wage for Florida real estate agents in 2020 was $61,120. However, it’s important to keep in mind that the average salary of a realtor in the State of Florida can vary widely. In this article, our aim is to give you a rough estimate and explain some of the factors affecting this figure.

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 Florida makes. They include:

Location

This is one factor that favors Florida strongly. Not only is the State a tourist hotspot both locally and internationally, but it also has great weather, numerous beautiful locations and a welcoming atmosphere. This probably explains why Florida properties rank highly in the housing market both in value and desirability.

Also, factors such as whether the property is residential or commercial affect the value. So why does this matter to us? Well, real estate agents are paid on a commission basis. This means that the higher the value of the property, the more you stand to gain as the realtor who facilitated the deal.

Your Agency

Choosing the right agency might be one of the most important decisions a real estate agent makes in his entire career. Your agency does more than determine the type of deals you may be exposed to, it also affects how much you stand to make.

Usually, the commission from a real estate deal is split between the real estate agent and their agency according to a predetermined ratio known as the commission split. Some other things your agency may offer includes bonuses you’re eligible to receive for hitting certain targets, promotional material and in some cases they may even offer a fixed salary structure as well.

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 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 on 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.

This is another area in which the Floridian market is particularly strong. Job growth within the state increased at a rate of 5.4% between January to September, which is particularly impressive when you compare it with the national growth rate of 0.8% within that same period.

The gross state product (GSP) of the state in 2019 reached $950.8bn, with a growth rate of 3.4% over the 5-years to 2019. In fact, within that same year, the real estate and rental industry was the top-performing sector within the state, making almost twice as much as the second sector on the list.

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 Florida Real Estate License

Getting your real estate license in Florida 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 63 hours of approved Pre-Licensing education
Pass the course exam
Complete the background check requirement
Complete your Licensing Application
Pass the Florida Real Estate Examination
Choose a sponsoring broker

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

Learn more about real estate pre-license classes here: Florida Real Estate School

In Conclusion

The real estate market in Florida 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 Florida and start your journey into the housing industry.