How Much Do Real Estate Agents Make In Arkansas
With the recent strength of the real estate industry and increased interest in the profession, it’s only natural that people become curious about how much realtors earn in different parts of the country.
In this article, we’ll be focusing on the housing market within Arkansas and try to give you an idea of exactly how much the average realtor in the state goes home with per annum. It’s important to remember that this figure can vary widely depending on a whole host of factors which shall be discussed more extensively within the article.
We’ll take a look at how much a real estate agent makes in Arkansas, the factors affecting this figure, and how you can get your real estate license in the State of Arkansas.
So How Much Does a Real Estate Agent Make In Arkansas?
When it comes to annual income, property location and the demand for housing are just a few of the things that affect how much a real estate agent makes in a year. Other factors like experience, brokerage policies, qualifications, and even local politics can have a profound effect on just how much a realtor makes per annum.
According to recent data, the annual mean wage for Arkansas real estate agents was $40,671 in 2022. However, it’s important to keep in mind that the average salary of a realtor in the State of Arkansas can vary widely. In this article, we aim to give you a rough estimate and explain some of the factors affecting this figure.
Factors Affecting How Much A Real Estate Agent Makes
As we mentioned earlier, the salary of real estate agents value widely across the state and many factors may affect this. Let’s take a closer look at some other important factors which may affect how much a realtor in the State of Arkansas makes. They include:
Location
When asked about the factors that determine the value of a property one of the first items people mention is property location. In a simplified sense, location is the primary reason the average home price in Goshen, Arkansas costs $619,320, which is nearly three times as much as the average price of housing in West Fork, Arkansas.
Factors such as access to basic amenities, security, recreation, proximity to the community, development potential, curb appeal, and neighborhood aesthetics are just a few of the things potential buyers look out for when in the market for residential and commercial properties. Therefore, areas that have all these attributes will obviously cost more than those that lack them. This also means that realtors who operate primarily within high-value areas will most make more than their counterparts who don’t.
Years of Experience
Like many other professions within various industries, years of experience usually correlate with a higher average salary and there are several good reasons for that. Most people who have been working in a field for years have picked up vital skills and experience which make them more productive and indispensable than novices.
Also, their time within the industry has allowed them to build up their reputation, increase their network of useful contacts, and obtain the necessary qualifications to justify their higher salaries.
To further emphasize this point, 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.
Relevant Qualifications
Just like any profession that places a high value on service provision, the real estate industry is one driven by the level of utility a realtor can offer. Therefore, realtors who have dedicated significant resources such as time and money to acquire additional skills and qualifications which enable them to provide better services to their clients are in a better position to bargain for higher fees.
The housing market is very diverse and the modern realtor does more than just “buy and sell” houses. They are part-economist, part-accountant, and part-sales person. There are many sub-specialties that realtors can look into which will enable them to specialize within different niches in the real estate market. For example, key areas such as property management, commercial property investment, and land consultancy are just a few of the many areas realtors can specialize in.
The Realtor’s Agency
A realtor’s agency affects their income and career in several important ways. Some of them include factors like their training process, industry reputation, skills, and exposure to high-value properties, deals, and clientele. Most importantly, your agency determines a realtor’s commission split.
A real estate commission split is a predetermined binding agreement between parties that elucidates how revenue generated on a particular real estate deal is to be distributed between the agency and the realtor. It may also include rewards for hitting certain targets, loyalty bonuses, and in some cases, even offer a fixed salary structure as well.
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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.
Of course, this does not always translate directly to the numerical amount of hours put in. It is also affected by how that agent both the time and opportunities placed before them in terms of constantly striving to improve, prospecting, building relevant networks, diversifying, expanding the skill set, and so on. Agents who engage in all these activities and make effective use of their time and resources typically earn more than those who do not.
The Economy
The relationship between the housing market, the economy, and the average income of realtors has not always been straightforward. The financial markets can influence the housing sector in numerous ways and the housing sector in turn is a significant part of the national economy.
Typically during times of economic downturn the housing market contracts due to the restricted flow of money within the larger economy. This leads to a fall in house prices, new listings, property sales, and ultimately the income of real estate agents and other key players within the housing market. However, as we said this process is anything but straightforward and housing prices within the State of Arkansas rose even though the country was going through a contraction due to the pandemic.
Government Policies
Government policies at the different levels of government also play a significant role in the market value of housing prices and the annual salary of real estate agents. Policies that encourage property buying such as low-interest rate mortgages and Government Sponsored Enterprises stimulate the housing market, while higher interest rates slow down the rate of house sales.
Policies controlling the rate at which new housing can be built and ultimately the supply of housing profoundly affect average housing prices as well. Bank interest rates and loan qualifying criteria largely determine the ease at which buyers can access the loans they need to purchase a property.
How To Get Your Arkansas Real Estate License
Getting your real estate license in Arkansas 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 all 60 hours of Real Estate pre-licensing classes
- Pass the final exams in your pre-licensing real estate courses
- Complete the Licensing Application
- Schedule your Real Estate Sales Associate Examination
- Pass the Arkansas Real Estate Salesperson Examination
- Apply for a license and find a broker to sponsor you
The entire process from starting your pre-licensing courses to receiving your license may take several months, depending on your schedule and other factors.
Related: How to become a real estate agent in Arkansas
In Conclusion
The real estate market in Arkansas 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 Arkansas and start your journey into the housing industry.