The housing market in the last couple of years has been quite interesting. An unexpected combination of circumstances has led to a unique real estate situation in virtually all parts of the country. High demand, low-interest rates, and a restricted inventory have driven housing prices to all-time highs.
However, these effects seem even more pronounced in areas with traditionally strong real estate markets like New Hampshire. This spells great news for real estate agents in New Hampshire because higher demand means more deals, and higher median housing prices also mean a higher commission.
Let’s look at how much a real estate agent makes in New Hampshire, the factors affecting this figure, and how you can get your real estate license in the State of New Hampshire.
So How Much Does a Real Estate Agent Make In New Hampshire?
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 profoundly affect just how much a realtor makes at the end of the year.
According to recent data, the annual mean wage for New Hampshire real estate agents was $65,997, according to a recent survey. However, it’s essential to keep in mind that the average salary of a realtor in the State of New Hampshire can vary widely. This article aims 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 look at some other important factors that may affect how much a realtor in New Hampshire makes. They include:
The Current State of the Economy
With the housing market’s current state, this is probably the biggest driver of housing prices and the most crucial determinant of a realtor’s income. A unique low housing supply situation spurred on by reduced construction due to supply chain constraints, worker restraints due to the lockdown, and various moratoriums prevented new houses from entering the market.
Reduced supply alone would have been enough to cause a rise in housing prices. However, an additional factor also contributed to the rapid increase in housing prices. The government lowered interest rates to improve the economy, creating a more favorable environment for buyers to invest in the housing market. This combination of low supply and high demand has rocketed housing prices all over the country to all-time highs.
Location
Despite being one of the least populous states in the country, New Hampshire residents enjoy a high standard of living and are among the top ten wealthiest states. According to Zillow, the median home value in the state is $405,600. Therefore it’s expected that real estate agents working within the state should be among the highest earners in the country as well.
Real estate agents who are more active in high-value areas are better positioned 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.
Your Agency
Choosing the right agency might be one of the most critical 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 and promotional material. In some cases, they may even provide a fixed salary structure.
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.
In New Hampshire, entry-level real estate agents typically make about $38,471. After over 8 years of being in the industry, this had increased to a median salary of $83,119, according to a study carried out within the state.
If you’re wondering why the study results showed such a skewed result between the income of novice agents and those with more extended 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 an extended period of time have built up a solid professional network, mastered 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 expanding 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 regions 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 could expect to make around $68,000 a year. But agents who spent between 51 to 59 hours a week working could expect to earn approximately $85,000 per annum. So those late nights do pay.
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 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 significantly impact 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 how easily 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 New Hampshire Real Estate License
Getting your real estate license in New Hampshire 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 at least 18 years old
- You must have a high school diploma or its equivalent
- Complete 40 hours of New Hampshire Real Estate pre-licensing classes
- Pass the final exams in your pre-licensing real estate courses
- Schedule your Real Estate Sales Associate Examination
- Pass the New Hampshire Real Estate Sales Associate Examination
- Complete the Licensing Application
- Submit to a criminal background check
- Find a broker to sponsor you
From starting your pre-licensing courses to receiving your license, the entire process may take several months, depending on your schedule and other factors.
Related: How To Prepare for Your New Hampshire Real Estate Exam
In Conclusion
The real estate market in New Hampshire is a lucrative industry. All you need is time, dedication, and hard work. However, with the drive and determination to constantly improve yourself and your network, you’ll be making a decent salary. So what are you waiting for? Click here to learn more about the requirements needed to become a real estate agent in New Hampshire and start your journey into the housing industry.