States Where Real Estate Pros Earn the Most (2024)

FAQs

What state do real estate agents make the most money? ›

Real estate agents in high cost of living cities such as New York and San Francisco tend to be the highest earners.

Some of these states include Alaska, Massachusetts, and Mississippi. Generally speaking, as long as you are able to pass a course, are 18 years of age, and have no prior convictions, you can qualify to become a real estate agent. North Carolina, for example, is one of the easiest states to obtain your license.

In 2020, the median pay for real estate agents in the U.S. was roughly $49,000. The lowest 10% of earners made less than $25,000, while the highest 10% of earners made more than $112,000.

Because of the many tax benefits, real estate investors often end up paying less taxes overall even as they are bringing in more income. This is why many millionaires invest in real estate. Not only does it make you money, but it allows you to keep a lot more of the money you make.

“90% of all millionaires become so through owning real estate.” This famous quote from Andrew Carnegie, one of the wealthiest entrepreneurs of all time, is just as relevant today as it was more than a century ago. Some of the most successful entrepreneurs in the world have built their wealth through real estate.

Hardest States to get a Real Estate License

Of all states, Colorado and Texas come on top as the hardest in terms of granting a real estate license. Each of the states requires some education and a test, which you must pass before being issued with a real estate license.

Of all the states, Colorado and Texas have the strictest requirements for obtaining a real estate broker license. In each state, you must study and take an exam to obtain a real estate broker license. The licensing system for real estate agents and brokers varies from state to state.

Is Florida real estate license easy? ›

How Hard is the Florida Real Estate Exam? Generally speaking, the pass rate for the Florida real estate exam is between 50-60%. By comparison, the average driving test pass rate is 45.8% in the US. So while the test may be difficult and meticulous, you will be able to pass it if you prepare and study accordingly.

Ben Caballero's Guinness World Record Official Listing

His home sales that year totaled a new individual real estate agent sales record of $1.444 billion, breaking his previous record of $1.022 billion; set in 2015 for 2,491 sales when he became the world's first Billion Dollar agent.

Austin, Texas-based Keller Williams, the world's largest real estate franchise by agent count, has more than 1,100 offices and 191,000 agents. The franchise is also No. 1 in units and sales volume in the United States.

That's the takeaway from a new Bankrate analysis of nearly 200 housing markets around the country. The personal finance website ranked the top most attractive and active housing markets and found that Gainesville, Georgia, was No. 1.

The Bay Area has the worst performing housing market in the nation, according to a new report.

The best 1% commission real estate brands include Clever Real Estate, SimpleShowing, and Redfin. These discount companies offer all the hands-on service and support you'd get from a traditional realtor, but they charge listing fees as low as 1%! See our full list of top low commission brokerages.

Billionaire industrialist Andrew Carnegie once said that 90% of millionaires got their wealth by investing in real estate. That alone should be enough for investors to at least consider this asset. But like any investment, real estate has both its pros and its cons.

Is real estate easiest way to become a millionaire? ›

Becoming a millionaire from real estate investing isn't as far-fetched as it may seem, but it's not an easy goal to reach. You shouldn't expect it to happen overnight, but it is achievable. If you have the right knowledge, develop a plan, and be persistent enough, you can become a millionaire real estate investor.

These studies found that self-made millionaires often share a few core characteristics, such as setting ambitious goals, seeking mentorship, taking calculated risks, learning from failure, managing time effectively and diversifying their investments.

The most popular way is to buy an investment property and slowly build up your portfolio. Generally, there are two primary ways to make money from real estate assets — appreciation, which is an increase in property value over a period of time, and rental income collected by renting out the property to tenants.

California leads the nation for fastest home sales, with the average property snapped up in just 52 days. Compare that to Vermont, the slowest of all 50 states, where it takes nearly half a year — 161 days on average — just to lock down a buyer.

Sellers can net thousands of dollars more if they sell during the peak months of May, June and July versus the two slowest months of the year, October and December, according to a 2022 report by ATTOM Data Solutions.

The Villages, FL metro area was the fastest-growing U.S. metro area between 2021 and 2022, increasing by 7.5%.

Is the Texas real estate exam hard? Well, given that on average 58% (26,492 passed / 45,423 taken) pass the licensing exam on the first try, as of May 1, 2023 it's safe to say it's not an easy test. Aceable, however, currently holds one of the highest pass rates in Texas. TREC Provider Exam Pass Rates.

You need to answer 75% or more of the questions correctly to pass the exam. Florida's exam questions are notoriously tough. Most people who struggled to pass the test the first time reported that they hadn't studied hard enough or taken enough practice tests to be ready.

Is being successful in real estate hard? ›

Earning a living selling real estate is hard work. You have to be organized in order to keep track of legal documents, meetings, and all the tasks that go into multiple listings. You may go without a paycheck for periods of time because the work is often commission-based. If you don't sell, you don't earn anything.

The difficulty of the real estate exam varies by state, but the California real estate exam is known to be one of the most difficult. In fact, the pass rate for the California real estate exam in the last two years was under 50%, which means it's incredibly competitive and difficult to pass.

Is the Tennessee real estate exam hard? While the majority of students pass their real estate exam, a passing score isn't guaranteed. In Tennessee, about 30% of students have to retake the test in order to pass. The best way to alleviate your nerves and pass the test is to work hard and prepare as much as possible.

That is a 47% pass rate.

You can take the Florida real estate licensing exam as many times as needed to pass.

The real estate appreciation rate in the Sunshine State in the last two years (Between 2020 Q3 – 2022 Q3) has been 53.28 percent. Considering the most recent twelve months tracked by them (2021 Q3 – 2022 Q3), Florida's home appreciation rates continue to be among the highest in the United States, at 26.35 percent.

No, a stockbroker or forex broker will not make you rich because their primary goal is to earn based on transaction commission—they want you to buy and sell frequently to increase their profitability.

Myth #1: All Stockbrokers Make Millions

The average stockbroker doesn't make anything near the millions that we tend to imagine. In fact, some lose a lot of money through their trading activities. The majority of companies pay their employees a base salary plus commission on the trades they make.

If You're Going to Dream, Dream Big (and Plan Even Bigger) Consider what it would take to make $1 million in gross commissions your first year selling real estate (before expenses and taxes). It would involve selling approximately $50 million of real property with an average salesperson commission of 2%.

What are the downside of being a real estate agent? ›

One of the biggest cons of this job is the amount of patience it requires. It may take a new real estate agent months to find their first client or close their deal. There is a lot of work that agents do before they ever see the profits, such as prospecting, advertising, and conducting open houses.

What is the lowest commission a real estate agent will take? You can find low commission realtors who charge as little as 1.5%. Typically, real estate agents charge a 3% commission, which adds up to 6% total commission for the buyer's agent and seller's agent.

The most popular option for real estate licensees is real estate sales. Thousands of Floridians get their real estate licenses every year specifically to become real estate agents. And for good reason! Real estate agents can work flexible schedules, be their own bosses, and enjoy unlimited income potential.

More importantly, real estate remains a wealth-building tool for the majority of moguls. An estimated ninety percent of millionaires were created through real estate investing. Any billionaire in the U.S. or anywhere around the globe that you know of has invested in real estate in some form or the other.

Becoming a millionaire real estate agent is possible, but it does not happen overnight. Only you can make it happen by constantly learning and being persistent in your goal. Ask yourself every day what you are doing that is getting yourself closer to your short term and long term goals.

Florida is ideal for real estate investors for many reasons but the main reason is its location. As a peninsula, surrounded by water, with beaches on every coast, Florida is ideal for those looking for vacation rentals or oases near the beach.

It is not difficult to become a realtor in Florida if you are willing to put in the time and effort required. To become a realtor in Florida, you must first pass the Florida real estate licensing exam.

The 3 L's: Listings, Leads, and Leverage

The three key L's that are necessary for garnering long-term success include Listings, Leads, and Leverage. Gary Keller became a successful real estate agent because he was able to complete numerous contracts in a short period of time.

“90% of all millionaires become so through owning real estate.” This famous quote from Andrew Carnegie, one of the wealthiest entrepreneurs of all time, is just as relevant today as it was more than a century ago.

Why real estate creates 90% of millionaires? ›

Federal tax benefits

Because of the many tax benefits, real estate investors often end up paying less taxes overall even as they are bringing in more income. This is why many millionaires invest in real estate. Not only does it make you money, but it allows you to keep a lot more of the money you make.

There is no quick way to make money or get rich in real estate, but you can grow wealth gradually and consistently by investing correctly. You are probably aware that there are numerous ways to accumulate wealth, but real estate is one of the most effective.

At the top, Orange County, California-based Donald Bren remains the wealthiest real estate billionaire in the country with an estimated $16.2 billion net worth, nearly $1 billion higher than last year.