When considering a career in real estate, it’s natural to wonder about your earning potential. If you’re specifically interested in pursuing a real estate career in Louisiana, understanding the average income of agents in the state can help you set realistic income expectations.

This article covers the average real estate agent salary in Louisiana and explores the factors that can influence an agent’s income in this dynamic and evolving industry.

Real Estate Agent Salary Louisiana

A real estate agent’s earnings can depend on a variety of factors. While these factors can vary somewhat by state, here are the most likely to influence an agent’s salary in Louisiana:

• Experience: The average salary of a real estate agent in Louisiana is $68,000 per year. More experienced agents often have larger networks and better negotiation skills, which can lead to more sales, higher-priced sales, and/or a higher commission rate
• Location: Even within the same state, real estate agents can experience significant differences in terms of property prices and the number of transactions they can close. A busy city like New Orleans might have higher property prices, for example, but also more competition among agents
• Sales Performance: The more properties an agent helps their clients sell or buy, the higher their total income. This can depend on their marketing skills, network, and reputation as well as current demand within the market
• Working Hours: Real estate can sometimes be a round-the-clock job — especially when dealing with clients who work standard business hours. Agents who put in more time often have higher earnings
• Specialization: Some agents may specialize in a certain type of real estate (e.g., commercial, residential, luxury), which can influence their earnings. Commercial real estate deals often involve higher-value properties, for example, but also may require more experience and expertise

Real estate can be a volatile business, and an agent’s income can vary greatly from year to year. It’s a business that requires a significant investment of time and effort — especially as you get started.

Understanding Commissions

Real estate salaries are commission-based, and the seller and the listing broker can negotiate the commission rate for a specific transaction. While there’s no standard rate, it’s common for the total commission to be around 5% to 6% of a property’s sale price.

For example, let’s say a property sells for $300,000 with a commission rate of 6% ($18,000). The listing agent and the buyer’s agent will usually split this commission evenly, although the exact split can vary. If it’s a 50-50 split, each agent would receive $9,000.

An agent then typically shares their portion of a transaction’s commission with the brokerage firm for whom they work. Depending on their agreement with their broker, a newer agent might only keep 50% of their commissions while a more experienced agent may keep 70% to 90%. If we assume a 70-30 split in the above example, the agent would keep $6,300 and their broker would get the remaining $2,700.

Note that agents incur expenses (e.g., marketing fees, insurance costs, association dues, and possibly desk fees to their brokerage firm) that they must cover with their e commission income.

Variable Expenses

Often considered independent contractors, real estate agents are responsible for their own business expenses. These expenses can vary from year to year and reduce an agent’s net income from their gross commissions. Here are some common expenses a real estate agent might incur:

• Licensing Fees: Agents need to maintain their real estate license, which includes taking continuing education (CE) courses and paying renewal fees. They also may choose to invest in additional training or certifications to enhance their skills
• Technology Costs: This includes everything from a smartphone and computer to real estate-specific software for managing contacts and creating marketing materials. An agent also might have to pay for website hosting, a customer relationship management (CRM) system, and/or premium services on real estate websites
• Office Expenses: If agents don’t work from home, they might have expenses related to renting office space. Even if they do work from home, they still might have expenses for office supplies, furniture, etc
• Listing Service and Association Fees: Agents usually pay to be part of their local multiple listing service (MLS) as well as professional real estate associations. These fees give them access to listings and other resources, and the cost can vary based on the local area
• Marketing Costs: This includes expenses related to listing properties (e.g., professional photos, virtual tours, and staging), marketing (e.g., a business website, business cards, and promotional materials), and advertising (e.g., online ads, mailers, and signage)

These expenses can vary greatly based on the agent’s market, how much they sell, their business strategy, and more. Moreover, a real estate agent will incur many of these expenses whether or not they make a sale.

How to Become a Real Estate Agent in Louisiana

Becoming a real estate agent in Louisiana involves several steps, including completing the required educational courses, passing an exam, and finding a sponsoring broker. Here are the key steps you must take to get a real estate license:

1. Complete pre-licensing education. The Louisiana Real Estate Commission (LREC) requires licensees to complete 90 hours of approved pre-licensing education. This coursework typically covers topics like property ownership, real estate law, property management, and real estate appraisal.
2. Pass the licensing exam. After completing the required education, you must pass the Louisiana real estate salesperson exam. Administered by PSI, the exam includes a national section on general real estate principles and a state-specific section on Louisiana’s real estate laws.
3. Undergo a background check. To ensure all licensed agents uphold the profession’s integrity and ethics, the state of Louisiana requires all applicants to submit to a criminal background check.
4. Obtain errors and omissions (E&O) Insurance. All active real estate agents must carry E&O insurance in Louisiana so you’ll need to obtain a policy before you apply for your license.
5. Find a sponsoring broker. Before you can become a licensed real estate agent, you’ll also need to find a broker willing to sponsor your application. The state requires that all new agents work under the supervision of a licensed broker for a certain amount of time.
6. Apply for your license. Once you complete the previous five steps, you can submit your license application to the LREC. The application will ask for information about your background, education, and sponsoring broker.
7. Complete post-licensing education. After obtaining a real estate license, new agents must complete 45 hours of post-licensing education within 180 days of their initial licensure. This education is designed to help new agents develop practical skills that’ll prove useful in their new career.

Note: The real estate industry can be challenging, and it may take time to build your business and start earning a steady income. However, it can be a rewarding career if you’re willing to put in the effort.