As a real estate agent, understanding your potential salary can help you set realistic financial expectations. From commission rates to market conditions, numerous factors can significantly influence the real estate agent salary in Arkansas.
This How Much Does a Real Estate Agent Make in Arkansas guide provides a detailed overview of your income potential as a real estate agent in Arkansas, enabling you to make strategic business decisions and achieve financial success in your real estate career.
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Real Estate Agent Salary Arkansas
Real estate agent salaries can vary, depending on a number of factors. Here are some key factors that can impact a real estate agent’s income in Arkansas:
- Experience: As with many professions, more experienced agents have the potential to earn more than their less experienced peers. The average salary of a real estate sales agent in Arkansas is around $70,058 per year
- Location: The region in which an agent works can have a significant impact on their income. This includes both the state and the specific city or county within that state. Real estate agents in areas with high property values or a large volume of sales tend to earn more
- Market Conditions: The health of the real estate market in a particular area also will impact an agent’s income. Homes sell quickly and for higher prices in a “hot” market, which can lead to higher commissions. In a slower market, homes may take longer to sell and sell for less thereby reducing an agent’s income
- Transaction Volume: The more transactions a real estate sales agent completes, the more commission they make. This’ll depend on the agent’s ability to attract and retain clients, successfully market properties, negotiate deals, and close sales
- Working Hours: Real estate can often be a more-than-full-time job — especially when the market is active. Real estate agents who are willing to work long hours, including evenings and weekends, can potentially earn more
Note that real estate is generally commission-based, making earnings highly variable and largely dependent on the success and dedication of the individual agent.
Interested in becoming a real estate agent? Check out our How to Get Your Arkansas Real Estate License guide.
Real estate agents typically work on commission, which means they get paid a percentage of a property’s sale price. Real estate agent jobs also differ, which can affect commission rates. These roles include residential or commercial brokers.
The commission rate typically falls between 5% and 6% of a property’s sale price — paid by the seller. The listing agent and buyer’s agent usually split the total commission. If the total commission is 6%, for example, each agent would typically receive 3%.
Each agent then splits their commission with the broker for whom they work. This can be anywhere from a 50-50 to a 90-10 split in favor of the agent. Some brokerage firms also offer a cap, which enables an agent to keep 100% of their commissions for the rest of a given year after they pay a certain amount in splits to the brokerage firm in that year.
For example, suppose an agent sells a home for $200,000 with a commission rate of 6%. That’ll generate a total commission of $12,000. The listing and buying agents then split this evenly so each earns $6,000.
Then, let’s say the agent has a 70-30 split with their brokerage firm. The agent would keep 70% of that $6,000, which is $4,200. The brokerage firm would get the remaining 30%, which is $1,800. So, the agent’s net commission from this particular real estate sale would be $4,200.
Note: Other related fees and costs could affect the take-home pay of a real estate sales agent, such as marketing costs, office expenses, etc. Commission structures also can vary from one brokerage firm to another.
Real estate agents incur a number of business-related expenses that can impact their net income. Here are some of the typical costs associated with working as a real estate agent:
- Licensing and Continuing Education: Real estate agents must be licensed by the state in which they operate, and this usually involves passing an exam and paying a licensing fee. Agents also need to renew their licenses regularly (every few years, depending on the state), which often requires paying for and completing continuing education courses
- Professional Association Dues: Many real estate agents are members of local, state, and national real estate agent associations, which charge annual dues
- Marketing and Advertising: This can include costs for creating and hosting a professional website, commissioning photography for listings, producing signage and printed materials, posting ads on social media platforms, and other promotional costs
- Office Supplies and Technology: This may include costs for a computer, cell phone, printer, customer relationship management (CRM) software, and other business-related technology. It also can include costs for office furniture and supplies if the agent has a home office
These expenses usually are tax-deductible, meaning an agent can subtract them from their total income to reduce their taxable income. However, these expenses still represent a substantial cost that directly impacts an agent’s take-home pay.
How to Become a Real Estate Agent in Arkansas
Working toward a career in real estate in Arkansas requires getting your real estate license. Here are the common steps you must take to obtain your license in this state:
- Complete pre-license education. Arkansas requires you to complete 60 hours of real estate pre-licensing education from an approved provider before you can take the state licensing exam.
- Pass the licensing exam. After completing the required pre-licensing education, you must pass the Arkansas real estate licensing exam. The exam includes two parts: one on national real estate principles and practices and one on Arkansas-specific laws and regulations.
- Apply for your license. Once you pass your exam, you can apply for your license through the Arkansas Real Estate Commission.
- Obtain a sponsoring broker. Before you can activate your license, you’ll need to find a sponsoring broker. They’ll provide you with additional training and guidance as you start your career.
- Complete post-license education. You must complete 18 hours of post-license education within six months of licensure.
After obtaining your license, it’s important to stay current with continuing education requirements and to continually network and market yourself to build your client base. The road to becoming a successful real estate agent requires ongoing work and dedication.
For Arkansas real estate pre-licensing education classes, StateRequirement recommends:
Real Estate Agent Salary Arkansas FAQ
What is the salary of a real estate agent in Arkansas?
The average salary of a real estate sales agent in Arkansas is around $70,058 per year. The income of real estate agents can vary based on several factors, such as the number of completed transactions, their commission rates, and the market conditions. For real estate agent salaries, check out our How Much Does a Real Estate Agent Make article.
How do you become a real estate agent in Arkansas?
In order to become a real estate agent in Arkansas, you must be 18 years old, complete 60 hours of pre-licensing education, pass the state exam, find a sponsoring broker, apply for your license, and complete 18 hours of post-license education within six months.
How fast can you get a real estate license in Arkansas?
The speed of obtaining a real estate license in Arkansas depends on how quickly you can complete the 60 hours of pre-licensing education and schedule your state exam. Most people complete this in one to three months. After passing the exam, you must find a sponsoring broker and apply for your license — a process that’s achievable within a few weeks.
Is there a difference between what a real estate agent and a real estate broker can earn in Arkansas?
Yes. Generally, real estate brokers can earn more because they can work independently and they may earn additional income by managing real estate agents who work under their brokerage. As of March 2023, real estate brokers in Arkansas earned around $53,720 per year.
What factors influence a real estate agent’s salary in Arkansas?
Key factors include the agent’s licensing and level of experience, the number of transactions they complete, their broker’s commission structure, the types of properties they sell, market conditions, and the specific location within Arkansas where they operate.
Is Arkansas a good place to start a real estate career?
Arkansas offers a unique opportunity for real estate agents because of the state’s diverse geography, which ranges from the flat terrain of the Arkansas Delta to the Ozark and Ouachita Mountains to the mountainous regions in the north and west of the state. This provides a variety of property types and settings.