If you’re considering a real estate career in Vermont, it’s natural to wonder about your earning potential in this field. Understanding the financial aspects can help you gauge the viability and rewards of pursuing this profession.
This article will address the question, “How much does a real estate agent make in Vermont?” It’ll also cover the key factors that can influence the real estate agent salary in Vermont, such as their commission structure and variable expenses.
Read on to learn more about the earning potential of real estate agents in the “Green Mountain State.”
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Real Estate Agent Salary Vermont
A real estate agent’s income can vary based on several factors, including:
- Experience: An agent’s average salary in Vermont is around $84,429 per year, and their level of experience plays a vital role in determining their earning potential. Newer agents typically have to invest a lot of time and effort to establish themselves and build a client base. Experienced agents can command higher commissions based on their track record and market knowledge
- Location and Property Values: While Vermont is surrounded by states like New York and Massachusetts, which have high property values, it also provides a competitive and growing market for real estate agents because of its charming small towns and natural landscapes
- Market Conditions: In markets with a high demand for housing and a limited inventory, agents have more opportunities to close deals and earn higher commissions. During a slower market or in recessionary periods, agents may experience a reduced sales volume that can negatively impact their earnings
- Work Hours: The number of hours a real estate agent works can impact their salary because dedicating more hours to their profession often translates into increased opportunities for sales and higher commissions
Successful agents in Vermont strategically leverage these factors to help them maximize their income in the state’s evolving real estate market.
Interested in becoming a real estate agent? Check out our How to Get Your Vermont Real Estate License guide.
In Vermont, the real estate agent commission structure typically involves a percentage-based fee paid by the seller of a property. This fee — typically 5% to 6% — usually gets divided among the seller’s agent (also called a listing agent), the buyer’s agent, and their respective brokers.
If a home sells for $400,000 with a 6% commission rate, the commission would total $24,000. If the seller’s and buyer’s agents split this equally, each would receive $12,000. If one of the agents has a 70-30 commission split agreement with their broker, they’d keep $8,400 while their brokerage firm would receive $3,600.
The specific percentages can vary. That means an agent’s net income can depend on fluctuating commission rates in addition to other work-related expenses.
Variable expenses associated with a real estate agent’s job can vary, depending on their situation and business practices. Some common examples include:
- Licensing Fees: In Vermont, agents must renew and maintain their license periodically. This requires the completion of continuing education (CE) courses, which come with related fees
- Technology and Software Expenses: Real estate agents rely on a variety of software applications and technology tools to help them with communication, marketing, document management, customer relationship management (CRM), and transaction management
- Marketing and Advertising Costs: Agents often invest in advertising to promote their services and listings via online platforms, print media, signage, photography, virtual tours, and other promotional materials
- Office Expenses: Agents may incur office-related expenses, including rent, utilities, office supplies, phone and internet services, and office equipment
- Professional Membership Dues: Real estate agents often belong to professional associations and multiple listing service (MLS) databases, which usually charge membership dues or fees
Real estate agents should carefully track and manage their variable expenses to promote profitability and financial stability within their business. By keeping accurate records and budgeting appropriately, agents can maintain greater control over their expenses and thereby optimize their earning potential.
How to Become a Real Estate Agent in Vermont
To become a real estate agent in Vermont, you must take several steps and meet certain requirements. Here’s a general guide on how to get a real estate license in Vermont:
- Complete pre-licensing education. First, you must enroll in a state-approved, pre-licensing course and complete the required number of course hours (currently 40). This course will cover topics like real estate principles, practices, contracts, and laws.
- Pass the Vermont real estate exam. Once you complete your pre-licensing course, you must pass the Vermont real estate exam. You’ll need to schedule a time to take this test with PSI, which administers the exam on behalf of the state, and pay the accompanying fee.
- Find a sponsoring broker. To practice as a real estate agent in Vermont, you must work under a licensed real estate broker. Research and connect with different brokerage firms to find one that aligns with your goals and values. Once you secure a sponsorship, you can move forward with the license application process.
- Submit your license application. After you pass the exam, you can submit your salesperson license application to Vermont’s Office of Professional Regulation (OPR).
- Complete post-licensing education. Newly licensed real estate salespersons in Vermont must complete eight hours of post-licensing instruction within 90 days of licensure.
Obtaining a real estate license in Vermont will allow you to legally represent buyers and sellers, negotiate contracts, and earn a portion of the commission from successful transactions. This commission-based income has the potential to provide a financially rewarding career.
For Vermont real estate pre-licensing education classes, StateRequirement recommends:
Real Estate Agent Salary Vermont FAQ
How much money do real estate agents make in Vermont?
The average base salary of a real estate agent in Vermont varies based on factors like their experience and individual performance as well as market conditions. According to recent data, the current average income for agents in Vermont is $84,429. For more information, visit our Real Estate Agent Salary page.
How much does it cost to become a real estate agent in Vermont?
The cost of becoming a real estate agent in Vermont depends on several factors. However, some common expenses include pre-licensing education courses (usually $300 to $400), the licensing exam fee ($110), and the license application fee ($50).
What is the highest-paid type of real estate agent?
Luxury real estate agents or brokers who specialize in high-end properties and cater to affluent areas tend to have higher incomes given the higher transaction values and commissions involved in their work. Succeeding as a highly paid type of agent or salesperson will depend on your dedication and performance as well as other factors like market conditions and specialization.
How long does it take to get a real estate license in Vermont?
Obtaining a real estate license in Vermont can take several weeks to a few months, depending on your pace and the availability of education courses and exam schedules. The process usually involves completing the required pre-licensing education coursework, passing the licensing exam, and submitting your license application.
Is it worth getting a real estate license in Vermont?
Getting a real estate license in Vermont can be worthwhile for individuals interested in pursuing a real estate career. Vermont has scenic natural beauty, charming rural communities, and a focus on preservation and sustainability. Its property market offers a mix of historic homes, quaint cottages, and contemporary properties that provide great opportunities for real estate professionals.