How Many Houses Do Successful Real Estate Agents Close Every Year?
Whether you are looking for a new home or are planning to sell the existing one; you may need assistance from a reputed property selling agent in your area. Although most of the agents in your area might be promoting themselves as #1 service providers or top-rated realtors; it is important to understand the important factors that determine their quality against pears.
The fact is that number of homes an agent sell per year can vary by a considerable level. In the United States, you will find more than 2 million licensed property agents and 1.3 million realtors; most of them are making additional efforts to become a listed or certified member of the reputed National Association of Realtors.
Many agents sell only one house in a year to their friends; however, others have built an empire to provide more than 5000 sales per year with advanced tech systems. But beyond these numbers, there are few other performance indicators that one needs to understand to identify the right agent.
Counting annual sales of a realtor
As per the NAR stats, realtors completed the median transaction sides of 12 residential properties in the year 2019. Note that transaction sides here are not restricted to the number of homes sold; instead, the agents earn transaction side whenever they help some potential seller or buyer to close a deal. It means for all the transactions in the property market, there are generally two sides where one is defined as the agent representing the property seller and the other is the agent representing the property buyer. In case if one realtor represents both sides, they are going to earn two sides. If we consider the 50/50 example, the average realtors sell almost six homes per year and help clients buy six homes per year.
Hobbyists sell lesser homes
As compared to what we often see in reality TV shows; you may be surprised to know that Realtors worked for almost 36 hours a week in the year 2019 and made the median gross income of almost $49,700 as per NAR stats. Note that these figures are associated with realtors that do not work on a full-time basis. Agents that sell less than four homes a year are better recognized as part-timers or hobbyists. They may consider real estate as their side hustle, gig, or post-retirement activity; however, they are able to make considerable profits out of this side business while helping friends to find their dream homes.
Top producers do more business
There are so many agents that sell homes much more than the average range per year. As per a recent survey, selling 15 properties per year is considered as an average. But some agents sell 20 to 25 per year; however, the top agents also end up closing deals for 40 to 50 homes in a year. But in most cases, they have full-time assistants working under them to handle different deals on regular basis. If an agent is capable enough to close around 50 deals per year, he is likely to have a large team of experienced transaction coordinators and assistants that can handle all deals efficiently. It means high sales numbers are usually influenced by large teams working under the same business name.
Selling few homes at higher margins
While measuring the success rate of an agent, you cannot stay focused only on the number of deals they close per year because this will bring on transaction sides into the picture. Realtors also receive commissions for closing the deals. Listing agents are observed to receive 5.8% on average and may split that amount with the buyer’s agent as well. However, the brokers working on both sides may also take some commission.
But when we consider the properties with higher value, the property agent is likely to make a higher profit per sale. Many popular second-home markets are known for the surrounding recreational opportunities and the cost of homes in such areas automatically rises to millions. An agent who is working actively to handle such types of properties may have a lesser number of sales per year. But they are likely to receive higher profit margins or an almost equal amount of money as compared to those who sell multiple homes per year. Therefore, the price point and margin ratio must be considered as an important term while identifying the success rates of a realtor.
An agent who is always involved in the real estate market might be more aware of specific market conditions and sales opportunities. You should hire such experienced people to handle your property investments and selling needs as well. They can help you analyze all factors associated with the potential properties and may find something that fits your demands more precisely.