A Step by Step Guide to Make $100k Your First Year as a Real Estate Agent

To be a successful real estate agent, ambition is almost a prerequisite to success.

Sure, many agents get pulled in by the flexible schedule or the implicit competitiveness that comes with the job, but the truth is everyone wants that fat commission check.

But does ambition alone always translate into success? The short answer is, no. Yes, ambition is important. Every new agent wants to start out making millions selling real estate their first year.

However, most new agents start out selling in a completely wrong way, setting them up for failure before they even get started.

If you want to become rich selling real estate and make $100,000 your first year as an agent, you have to change your business model.

Flashy gimmicks and silver tongues may land you one or two deals, but it certainly won’t make you wealthy.

Instead, realtors need to embrace a philosophy of regression, but also adaptation, back to the basics and fundamentals that is the underbelly of a successful and efficient business.

Here are a few ways you can change your business model to help you make $100,000 your first year as a real estate agent.

Diving into the Data

Landing a large listing can certainly net you a nice commission. Who wouldn’t be happy closing on a multi-million-dollar piece of real estate?

Let’s say you do end up selling that extravagant villa in Orange County or that luxury penthouse suite overlooking Central Park in New York City. Is that your typical clientele?

The reality is that while sometimes you close on a big deal, it may be an anomaly to your typical book of business.

In fact, professional realtor and expert Kyle Handy notes that “that the average first-year real estate agent earns approximately $15,000.” [1]

According to Inman, “most salary surveys will tell you that the average salary for a real estate agent in the U.S. is just $39,800 a year.” [2]

Understanding your goal of making $100,000 a year means you need to dive deeper into the data and figure out the metrics required to net about 250% more than the average agent. One great way to do this is to start backwards from your end goal.

You don’t want to just throw darts randomly at a dart board, hoping something sticks (in this case a fat listing). Instead be more methodical and strategic. Know your numbers.

STEP 1: Figuring Out How Much You Need to Sell

Making $100,000 net profit, after brokerage fees, means you need to sell roughly $5 million dollars worth of real estate in a given year. This can fluctuate a little since brokers fees can vary, but $5 million is a good rule of thumb.

Your next step then is to take $5 million and divide it by the average sales price for homes in your market. That will give you a target for the number of homes you need to sell to make your $100,000 goal.

Using West Hollywood as an example, that means you may only need to sell one home north of Sunset Blvd. But realistically, if the average price in your market is closer to $350,000, you would be looking to sell about 14 homes. 

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