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Most real estate agents are self-employed and do not receive a fixed salary. Instead, they receive a commission upon successfully closing a real estate transaction. This can be a purchase, sell, or leasing out a property.
Real estate agents in Iowa earn an average yearly income of $54,880, typically range between $32,400 and $68,150. Top 10% of high-earning real estate sales agents are making over $96,090 per year.(*)
At the beginning phase in your real estate career, you probably would not make a lot, because it takes time to build up the client base and established trust with prospects. As you continue to gain experience and refine your business process, you should be able to notice a significant improvement to your earning.
In this guide, I will uncover how much do Iowa real estate agents make per sale, the areas with top-earning salespeople, and whether being a commercial or residential agent has any effect on the income.
(*) Source: Bureau of Labor Statistics (May 2020)
How much commission do real estate agents make in Iowa?
Clever Real Estate surveyed 915 local agents and found that the average real estate commission rate in Iowa is 5.90%. This is usually split between the buyer’s broker and the seller’s broker.
How much do real estate agents make per sale in Iowa?
Real estate agents make an average of $3,658 per sale in Iowa.
Here’s the calculation.
- According to RedFin, the median sale price of houses in Iowa is $248,000.
- The commission generated from such a real estate transaction will be $248,000 X 5.9% = $14,632.
- Assume it is split equally at 50% between the brokers, so each real estate brokerage will receive $14,632 X 50% = $7,316.
- For starter agents, many firms would offer them a 50/50 commission split. So the amount of commission that ends up in a real estate agent’s pocket will be $7316 X 50% = $3,658.
As your business volume grows, you may negotiate a higher commission rate with your broker. This usually happens when you already have an effective business process and require less support from your brokerage.
Furthermore, how much you can earn per sale also depends on the price range of the properties that you work with.
What percentage do real estate agents make in Iowa?
Top 10 Highest Paying Cities for Real Estate Agent in Iowa
| City | Annual Salary |
|---|---|
| Sioux City | $74,786 |
| Ames | $74,017 |
| Dubuque | $73,118 |
| Des Moines | $72,986 |
| Cedar Rapids | $72,599 |
| Davenport | $72,349 |
| Ankeny | $71,461 |
| Iowa City | $70,868 |
| Waterloo | $70,501 |
| West Des Moines | $65,716 |
Source: ZipRecruiter (July 9, 2021)
This comes as no surprise as a few of them, such as Ames, Des Moines, have the Fastest Growing Sales Price, according to RedFin.
So what are the factors that make one salesperson make more than the others? Is it their education? The time they put into the business? Here’s a “Real Agent Income Guide”, where I uncover the factors that could affect your income significantly.
How much do commercial real estate agents make in Iowa?
Commercial real estate agents work with business owners to find them the right property for their business. They could be working in a variety of industries, from retail and commercial office space to warehouses and industrial properties.
Many businesses prefer to rent office space rather than buying it, especially for small startup businesses. Therefore, CRE agents also help clients in managing the lease. They receive a percentage of the total lease.
Once the lease is signed, the CRE agent is usually paid a portion upfront and the remainder when the tenants move into a property.
According to ZipRecruiter, commercial real estate agents make $58,391/year in Iowa.
Here are more helpful resources about the Iowa real estate career
This article is part of the “Iowa Real Estate Career Series.” If you want to know more about being a real estate agent in Iowa, I invite you to check out the following articles:
- How to Become a Real Estate Agent in Iowa?
- How to Pass the Iowa Real Estate Exam?
- Strategies to Be a Successful Real Estate Agent in Iowa
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(**) Affiliate Disclosure: Please note that some of the links above are affiliate links, and at no additional cost to you. Our company, JCHQ Publishing will earn a commission if you decide to make a purchase after clicking on the link. Please understand that we include them based on our experience or the research on these companies or products, and we recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something through the links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. Some of the posts on this site may contain views and opinions from individual not related to JCHQ Publishing. They do not necessarily reflect our view or position.
Reference:
- ZipRecruiter
- Bureau of Labor Statistics – Real Estate Agents (Source)
- clever – What’s the Average Iowa Real Estate Commission in 2021 (source)
- RedFin – Iowa Housing Market (source)
