Learn how much commission you can make as a real estate agent in Georgia and how you can complete your required education online!
Quick answer: The average total commission for real estate agents in Georgia is about 5.81% of the sale price. Considering Georgia's average home price and the standard commission split, a realtor would receive $6,709 in commission from a typical deal.
Are you considering becoming a real estate agent in Georgia? Knowing about the commission structure in the state will help you figure out how much you can earn. What can you make on each sale? What could your annual income be? These are important questions when you decide if this career path is right for you.
A December 2023 survey revealed that the average commission in Georgia is now 5.81%. That is higher than the national average of 5.49%.
However, your earnings from year to year vary when you are a real estate agent in Georgia. Commission rates are not standardized, and they can't be, according to antitrust laws. Instead, they are negotiable.
The average sale price of a house in Georgia is now $461,880, according to the Georgia Association of Realtors. That translates to an average commission payout of about $26,835. But you might have to share that amount with other agents, so it won't all go into your own pocket.
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Real estate commissions are traditionally split four ways. The listing agent and their broker each get a percentage. Then, the buying agent and their broker each get a percentage. Like many states, in Georgia, real estate agents can't directly receive commissions from the sale of a property. Instead, your broker will get paid and then they will pay you according to your agreement.
On average, the listing agent and broker receive a slightly higher percentage than the buying agent and broker. The average listing commission in Georgia is 2.93%, and the average buyer’s agent commission is 2.88%.
Here's an example, using round numbers for simplicity:
If you found a buyer for a home that costs $450,000 and the commission in the listing agreement was 6%, the payout would be $27,000. How the $27,000 is divided up depends on the agreements that have been negotiated. If your broker and the listing agent agree on a 50/50 split, each party would get $13,500. Then, if you and your broker agree on a 50/50 split, you each would get $6,750. The same applies to the listing agent and their broker.
Home cost: $450,000
Total commission: 6%, $27,000
Listing agent: 1.5%, $6,750
Listing agent's broker: 1.5%, $6,750
Buying agent: 1.5%, $6,750
Buying agent's broker: 1.5%, $6,750
As you become a more established real estate agent, you can often negotiate a split that leans more in your favor. For example, you may receive 70%, and your brokerage will get 30%. But, in the beginning, your brokerage is helping you get clients, so your share is often more modest.
The average annual income of a Georgia real estate agent is $64,410, which is about 7.5% lower than the national average. However, there is a huge income range, from $31,400 for the lowest-earning 10% of agents nationally up to $119,590 for the highest-earning 10%. As you gain experience, enlarge your network, and continue your real estate education, your earnings can keep on growing.
You may run into variants of the traditional commission model. For example, some brokers offer a flat payment to agents for each home sold. That's why choosing your broker carefully is important. You want to enjoy your work environment but also get the best deal.
Technology is now disrupting the real estate industry, and several companies have emerged that offer a new commission model. Companies like Clever and Redfin negotiate listing fees as low as 1% for home sellers. But why would you be willing to accept a lower commission rate? These types of companies provide you with referrals, meaning you won't have to spend time and money marketing yourself to home sellers — something that both new and established agents dread.
The National Association of Realtors (NAR) recently entered into a proposed settlement where buyers, rather than sellers, will be responsible for compensating buyers’ agents. While sellers will not be required to compensate buyers’ agents, they may choose to do so to create an incentive for buyers.
The settlement is expected to go into effect in Georgia later this year, but many industry experts think it will have little effect on agent compensation. According to the general counsel for Georgia REALTORS®, stories in the press have incorrectly given the impression that real estate agents must drastically lower their commissions. In Georgia, commissions have always been negotiable, and that will not change.
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Georgia is the second-fastest-growing state in the U.S. Now is a great time to consider a career as a Georgia real estate agent.
Being a real estate agent in Georgia provides a solid long-term income. Plus, it's a career path with a low barrier to entry. You don't have to spend years in college. In fact, as long as you are 18 and have your high school diploma (or the equivalent), you can take the 75 hours of required pre-licensing education online with an approved school like Aceable.
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