In this Knoxville Insider Issue…

🌤️ Real Estate Edition - The Truth About REALTOR® Earnings: Debunking the “Getting Rich” Myth
 

The Truth About REALTOR® Earnings: Debunking the “Getting Rich” Myth

Lately, there’s been a surge of articles and social media posts suggesting that REALTORS® are "getting rich" from selling real estate. While the headlines might be flashy, they are far from accurate. In reality, the average real estate agent’s earnings paint a very different picture.

According to Salary.com, the average annual salary for a REALTOR® in Tennessee is $43,187, which translates to roughly $20.76 per hour—assuming an agent works a standard 40-hour week. However, most real estate agents often work well beyond 40 hours per week, managing everything from client meetings and home showings to contract negotiations and administrative tasks. So, while the hourly wage may seem reasonable, many agents are putting in much more time than those figures suggest.

The Costs Behind the Job

It’s important to remember that REALTORS® don’t pocket the entirety of their earnings. In fact, a substantial portion of their income goes toward covering the costs of running their business. REALTORS® are responsible for a wide range of expenses, including:

• Marketing: From professional photography for listings to online ads and social media promotions, REALTORS® invest in marketing to sell homes effectively.

• Transportation: REALTORS® often spend significant amounts on gas, driving to showings, inspections, and closings. In rural or spread-out areas, this can add up quickly.

• Supplies: This includes everything from business cards and signs to digital tools like customer relationship management (CRM) software.

• Education and Licensing: REALTORS® must complete continuing education courses and pay for their licenses to remain compliant with local and state regulations. This isn’t just a one-time cost—agents must consistently invest in their knowledge to stay competitive and up-to-date.

These expenses mean that a good portion of what REALTORS® earn goes back into their business, and they often have less left over than people realize.

The Reality of Being a REALTOR®

Becoming a successful REALTOR® takes dedication, hard work, and perseverance. It’s not a 9-to-5 job, and many REALTORS® spend their evenings and weekends working with clients. While the real estate market can be lucrative for some, it’s also highly competitive, and many agents struggle to maintain consistent income, especially during slower market periods.

In conclusion, while the perception that REALTORS® are "getting rich" might make for clickable headlines, the reality is much different. REALTORS® work long hours, pay for a variety of expenses out of pocket, and face market fluctuations that can greatly impact their income.

Ask a Realtor😀 

Are housing prices going up, staying steady or going down in the Knoxville area, specifically in the Halls area?

• I’m no fortune teller, but I can say that after the sharp decline in June, home sales in July made a slight comeback. Mortgage rates have also dipped a bit. If rates keep falling, the market is likely to pick up momentum again!

I’m planning a move from Knoxville, TN to Louisville, KY. What would be the absolute first thing I should do to list my home? Or should I find a place in Louisville first?

• A lot will depend on your financial situation. If you're able to buy a home in Louisville without selling your Knoxville home first, you could start house hunting there right away. However, if selling your current home is necessary, I'd suggest putting it on the market as soon as possible. It’s a good idea to interview a few agents to find someone you connect with, especially one who loves your home and will be excited to market it. For instance, I am working with a client to sell a well-maintained, retro home from the 60s, which I personally love, and that enthusiasm will help us sell it quickly! Also, it's a good time to start cleaning and decluttering to get your home ready for listing.

This Real Estate Edition Issue brought to you by Barbara Newton. She can be reached at [email protected]

Become a Knoxville Insider Real Estate Edition Sponsor

Are you a brand new or established business looking to become known in our Knoxville Insider community? We are looking for locally-owned business that would like to become a Knoxville Insider sponsor! Sponsorships can include:

• Hero or section banners

• Logo

• Video

• Print

• Spotlight Directory

• and more…

Reach out to us at [email protected].