A Michigan real estate license can open doors. On average, Michigan real estate agents make about $46,000 per year. That’s 19 percent below the national average, but the top twenty percent of real estate agents in Michigan make more than $84,000 per year.
Real estate agents in Michigan sometimes make as little as $25,000 per year, but these statistics can be misleading because some real estate agents work part-time or choose to focus on smaller properties.
Earnings By Seniority
- Real estate agents in Michigan start at $12 per hour or $25,000 per year.
- Mid-level real estate agents make $22 per hour or $46,000 per year.
- Junior real estate agents make about $15 per hour or $31,000 per year.
- The most experienced real estate agents make roughly $40 per hour, which translates to over $84,000 per year.
- Senior-level real estate agents in Michigan begin their earnings at $32 per hour, or $68,000 per year, and work their way up.
These salaries vary significantly based on how much the real estate agent works and what kind of jobs they accept. A senior-level real estate agent may make the same amount per year as a starting level real estate agent but put in far less work.
Compared to Other States
According to https://www.ayporealestate.com & compared to other states, real estate agents in Michigan aren’t quite as well-paid. It’s to be expected when comparing the cost of housing in different states. For instance, real estate agents in New York, on average, make double what real estate agents in Michigan earn.
Michigan real estate agent salaries are on par with other states in the Midwest, and slightly higher than in the south. Surprisingly, they’re not much lower than what real estate agents in California make, on average.
What Goes into the Salary?
The amount a real estate agent earns mostly depends on the number of transactions they oversee, the commission they pay to the brokerage, and what they split with the broker.
It’s challenging for real estate agents to make a lot of money right away because there’s a learning curve. New real estate agents are still building their client base and have not yet established the crucial trust needed in these types of business relationships.
It’s not unusual for new real estate agents in the industry to receive low commission splits. It’s similar to setting up a new business. You have to work hard, venture outside of your comfort zone, and grow the potential revenue so that you don’t have to work as hard later.
There are almost one million real estate agents already operating in the United States, and the market can be oversaturated in some areas. It is one of many obstacles to developing a viable business model and takes commitment. The national average median income is more than $54,000 per annum.
For real estate agents who work more than 60 hours per week, the median income is over $87,000 per year. Only about 20 percent of real estate agents make more than $100,000 per year. It shows that real estate agents who are dedicated to working full time and have a sound business plan have greater earning potential.
Every real estate office has its own set of standards for qualifying top producers, but it usually means you sell at least one home per month. Many top producers make more than $200,000 per year, but it takes an investment of hard work, dedication, and time.
In Michigan, real estate agents make comparable salaries to similar careers. They make more than family social workers but less than postal service workers, for example.
Being a real estate agent can be lucrative, however. It can also be fulfilling, and salary is only one component of the satisfaction that real estate agents feel when helping people find the home of their dreams. It’s a rewarding career full of opportunity—for building your own business, learning how to help people, and continually increasing your potential.