You might be aware that real estate prices in New York are among the most expensive in the world. Just in Manhattan, the average took an all-time high at $999,999 in the second quarter of 2021. Now, imagine being a real estate agent in that buyer-driven market.
So, here’s what you need to know about how much you can earn as a real estate agent in New York.
How Much Do Real Estate Agents Make in New York?
Real estate agents in New York make an average of $102,200 annually, according to the Bureau of Labor Statistics in 2020. This makes New York the top paying state for real estate agents.
Additionally, the New York-Newark- Jersey City metropolitan area is among the top paying for real estate agents, averaging at $98,580.
With one to two-year real estate experience, an agent has around $85,000 potential yearly income. Whereas, those with more than 10 years of experience can earn more than $112,000.
Real Estate Agent Commission Rates in New York
The commission rate for real estate agents in New York is around 5% to 6% of the final selling price. This commission is split between the buyer's and listing agents, so you'll end up with 3%. In addition, typically the broker takes half of your commission, so in the end, it's around 1.5% of the sale price you get.
How to Get Your New York Real Estate License
Before you can start your career as a real estate agent in New York, you need to have a license. It is valid for two years, which means you need to renew it to keep working there.
Here’s what you need to know to get your New York real estate license:
Before launching your application, make sure you meet these requirements:
Be 18 years old or older
Have a current driver’s license or a non-driver ID card
The New York State requires all applicants for real estate licensing to undergo a 75-hour salesperson qualifying education course. Aceable is one of the approved providers that offers pre-licensing courses.
Suppose you’ve already completed a 45-hour qualifying course before July 1, 2008. With that, you only need a 30-hour remedial course to meet the educational requirement for a real estate license.
Make sure to prepare the initial application fee and the written exam fee when applying for a license. These cost $55 and $15, respectively.
After completing your pre-licensing education, you can apply to take the written examination through the New York Department of State (DOS) portal. For that, you’ll need to create an account first and provide all the required information.
On your examination date, don’t forget to bring a government-issued ID with your photo and signature. You should also have a printed copy of “Summary of Your Submission” when you applied at the DOS portal.
Exam Results and License Application
The exam results only show whether you pass or fail. Once you pass, you can apply for your license through the DOS portal. At the same time, your personal broker should authorize your application on their DOS account.
The Department of State will review your application once your broker authorizes it. When approved, the DOS will mail you your license.
Ready to Take Your New York Real Estate Courses with Aceable?
Aceable offers pre-licensing and continuing education to help you achieve a top-earning status in the real estate industry. Check out Aceable Real Estate School courses and sign up to get your New York Real Estate license.