Whether you’re already working as a licensed real estate professional or are considering this as a career path, one specific option to consider is that of selling luxury real estate. Specifically, a career in luxury real estate means helping clients buy and sell homes ranked in the top 5% of properties based on market value.
This means you could be handling deals of millions of dollars in a single day’s work!
If you’re considering a career in the upper tier, you might be wondering how much luxury real estate professionals make. In general, luxury real estate professionals make nearly double the annual salary of real estate professionals working non-luxury markets.
Likewise, earning professional designations (such as the CLHMS™ designation)can also boost your earnings potential even more.
Why Luxury Real Estate Professionals Make More
So, why do luxury real estate professionals tend to make so much more than non-luxury professionals? For the most part, it boils down to the simple fact that higher-priced properties have higher commissions. This means that a real estate professional working in the upper tier can sell fewer properties than a traditional real estate agent but still bring in a larger commission check.
Of course, this doesn’t mean that you don’t have to work as hard if you’re working in luxury. In fact, you could argue that the luxury market is much more competitive than the non-luxury market. As a result, real estate professionals representing buyers and sellers must go above and beyond to close a deal.
How Much More? It’s All About Commissions
According to Zip Recruiter, the average luxury real estate professional makes about $95,000 per year. However, exact earnings for any real estate professional can vary greatly depending on how large of a workload they take on, the value of the properties they list, and many other factors.
Commissions can also have a major impact on how much money a luxury real estate professional earns. In general, real estate professionals can expect to charge about a 6% commission on most deals. This means that on a home with a sale price of one million dollars, the seller will pay $60,000 in commissions alone.
However, this commission has to be split between both the buyer’s agent and the seller’s agent — so each one walks away from the deal with a $30,000 commission check. Of course, real estate professionals must be prepared to pay applicable taxes on these commissions.
Compare this commission check to the check a non-luxury real estate professional would receive on the sale of a $250,000 home. With the same 6% commission, each agent would walk away from the deal with just $7,500 (before taxes).
With this in mind, it’s easy to see how luxury professionals have such high earning potential — even with the same 6% commission rate.
Boost Your Earnings Potential With a CLHMS™ Designation
In the luxury real estate market, there are plenty of additional certifications and designations that can boost your earnings potential even more. However, for those who want to maximize their potential, the Certified Luxury Home Marketing Specialist™ (CLHMS™) designation is by far the best option to explore.
Based on a 2021 study, real estate professionals with this designation earn nearly four times the average salary of luxury professionals without this designation. Likewise, CLHMS™ designees earn anywhere from $80,000 to $170,000 more per year than those with other luxury real estate designations.
Members of The Institute can earn their CLHMS™ designation by completing the required training, and closing three separate residential transactions within a recent 24-month period of application submission that are at or above the luxury threshold in each transaction’s market area.
In addition to higher earnings, being a CLHMS™ designee also gives you the tools you need to dominate your local market with confidence. This also opens up the opportunity for you to achieve GUILD™ recognition, which is one of the highest distinctions in the industry.
The Bottom Line on Luxury Real Estate Earnings
Getting into the luxury real estate market is a no-brainer if you want to double your earnings potential while enjoying a rewarding and competitive career. And if you’re serious about maximizing your earnings, pursuing the CLHMS™ designation from The Institute for Luxury Home Marketing is a must.
Find out more about this incredible training opportunity or contact us for more information.
That’s definitely huge, but I guess you can only break through this market if you’re well connected and well established in the industry.