Average GCI In Real Estate
What is average GCI in real estate?
Average GCI is not commonly used in real estate because GCI varies greatly depending on factors like location, market conditions, experience level, and individual performance. As such, average GCI can easily be skewed by outliers and might not accurately represent the typical experience of real estate agents.
Median GCI is usually the favored measure of typical real estate agent earnings. In the context of real estate agent earnings, "median" refers to the middle value when all earnings are arranged in order. It is the point at which half of the real estate agents' earnings are higher and half are lower.
According to a 2022 NAR survey, REALTORS® with 16 years or more experience had a median gross income of $85,000. Agents who fell above the median typically worked more hours, had more experience, or worked in higher-income niches like luxury or investment properties.
Comparing Real Estate Agents
Curious to know how you're doing compared to most real estate agents? We were too!
Real Estate Webmasters has the pleasure of working with some of the best real estate agents in the world. Our clients are passionate, enthusiastic, and often quite successful.
But we wanted to get to know the entire real estate population better, and have a stronger understanding of what the average agent looks like. To achieve this goal, we hired an independent market research company to survey 300 active real estate agents across the United States and Canada. These agents were then asked questions on a wide variety of topics to gain insight into their demographics, marketing activities, and technology investment.
We thoroughly investigated what today's real estate agent and found some answers to your questions...
What is the average age of a real estate agent?
Real estate agents are typically over the age of 40.
The average age of Realtors was interesting, with 82% of agents at the age of 40 or better. In fact, very few real estate agents were younger than 30, suggesting that real estate is not typically a "starter career." Instead, people are more likely to become a real estate agent after previously pursuing one or more alternative career paths.
Younger agents are more likely to make the highest GCI
The mean age of real estate agents who make under $100,000 is 55, while the mean age of agents who make a GCI of over $300,000 per year is 50.
How much does a real estate agent make in a year?
Real estate agents typically make less than $100,000 per year.
When breaking down agents' Gross Commission Income (GCI) over the previous 12 months, 37% of agents made less than $50,000, and another 28% made less than $100,000. But that still left a big slice of pie for the agents making more than $100,000 each year. In fact, 12% of agents make more than $300,000 in GCI.
Most Realtors have fewer than 10 transactions per year
Although being active as a Realtor was a prerequisite for our survey, a whopping 38% of agents had fewer than 5 transactions in the past 12 months, suggesting that a good portion of agents are part-time or semi-retired. On the other end of the spectrum, 17% of agents close more than 25 transactions in a year-long period—the equivalent of a home bought or sold every two weeks.
Agents with high GCI close the most transactions
The agents making the most money are also the agents closing the most deals. In fact, 63% of agents who made over $300,000 also closed more than 25 deals, while three-quarters of agents with a GCI of less than $100,000 closed fewer than 10 deals.
At the end of the day, we saw two major subgroups of agents: an older retiree crowd with fewer transactions that typically make less than $100,000 per year, and a somewhat younger and highly active group of agents closing over 25 deals and making six figures in a year.
How do you compare to your fellow real estate agents?
GCI in Real Estate FAQ
What is GCI in real estate?
GCI in real estate stands for Gross Commission Income, which is the total amount of money earned by a real estate agent or brokerage before expenses and deductions. GCI can be calculated from a single transaction, or include multiple transactions in a given time period.
How do you calculate GCI?
For a specific sale, multiply your commission rate by the final sale price. Over time, GCI is calculated by adding up all the commissions earned by a real estate agent or brokerage from completed transactions during a specific time period, usually a month or a year.
How does GCI work?
GCI works as a financial metric used in real estate to measure the total earnings generated by an agent or brokerage from commissions before accounting for expenses and deductions, providing a snapshot of their gross revenue from completed transactions.
How can agents increase their GCI?
Real estate agents can increase their GCI by focusing on activities that lead to more closed transactions, such as prospecting for new clients, building a strong referral network, negotiating higher commission rates, closing more high-value deals, and providing excellent customer service to generate repeat business.