How Much Do Real Estate Agents Make In Maine
Aside from being the most northeastern state in the country and the only state which shares its boundaries with only one other state, there are a few other things you might like to know about the State of Maine. Here are a few:
- 90% of the lobster consumed in the United States comes from here
- They invented donut holes
- They are the single largest producer of blueberries in the country
- and the real estate industry in the state is booming!
The Maine Association of Realtors released information on the strong demand for housing within the state, which saw housing prices soar a record 16.8% to $299,000 by the end of 2021. This is not only great news for investors in the housing market but also for real estate agents who are paid on a commission basis. That means that the average income of real estate agents in the state will be expected to rise as well.
Let’s take a look at how much a real estate agent makes in Maine, the factors affecting this figure, and how you can get your real estate license in the State of Maine.
So How Much Does a Real Estate Agent Make In Maine?
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 recent data, the annual mean wage for Maine real estate agents was $42,232 as of the end of March 2022. However, it’s important to keep in mind that the average salary of a realtor in the State of Maine 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 Maine makes. They include:
Location
Factors such as whether a property is residential or commercial and the location of the property affects 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.
Real estate agents who are more active in high-value areas are therefore in a better position to make more than their colleagues who operate in areas with a lower average property value. This does not mean that working in such areas is not highly profitable, but only explains how location may affect how much an agent makes on a single deal. Remember to also factor in other things like sales volume, commission split, and so on.
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 include 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
A study carried out between 2019 and 2020 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.
If you’re wondering why the results of the study showed such a skewed result between the income of novice agents and those with longer experience, it can be broken down to a few simple reasons. The most important of these factors include the fact that real estate agents who have been active participants in the industry for a long period of time have built up a strong professional network, learnt the intricacies of the business, and have the leverage to negotiate better deals than their less experienced counterparts.
Your Qualifications
To make it in the housing industry you must possess skills and qualifications that put your services in high demand. This means constantly striving to expand your current skill set to include high-demand areas of expertise. Some key areas you may want to look at include 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. Most of these can be taken as post-licensing educational courses which are usually organized by the real estate commission body governing your state.
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.
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 Maine Real Estate License
Getting your real estate license in Maine 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 55 hours of approved Pre-Licensing education
- Pass the course exam
- Complete the background check requirement
- Pass the Maine Real Estate Examination
- Complete your Licensing Application
- 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.
In Conclusion
The real estate market in Maine 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 Maine and start your journey into the housing industry.