Real estate agents are getting the same marketing blitz as their clients, but they’re also getting paid a lot more.
The average agent earns $15,000 more a year than the average client, according to a recent survey from Re/code.
And with the recent downturn in the housing market, agents are taking advantage of their newfound leverage to boost their compensation.
In 2017, the average agent earned $2,038, a 16.7% raise over the previous year.
That was mostly driven by rising agents’ compensation packages, which rose 19.5% to $2.9 million.
That includes bonuses for managing clients and more.
Agents also get a bonus for being a leader in real estate and their ability to work with top buyers and sellers.
“The market is going to continue to tighten, but agents are going to have to find ways to make more money,” said Jeff Drazen, chief executive officer at Re/Code.
“It’s going to be a challenge for agents to get that extra bump.”
In addition to higher pay, agents also get the ability to take more on their agency expenses.
The median agent earned nearly $5,000 in 2017, up from $4,800 in 2016.
Agents are also getting bigger commissions, which can drive up the cost of a transaction.
A typical agent will make about 10% more than a typical client, but that amount drops to 10% if the agent is also a partner or vice president.
Drazen said that’s a big deal because agents are expected to manage and manage a lot of clients.
He said that they will be expected to be flexible and adapt to the needs of their clients.
“I think there will be a lot less demand for the same kind of service,” Drazen told Recode.
“There will be more people who need a different kind of professional service.
It’s just going to become more expensive.”