If you’re considering getting a Colorado real estate license, knowing the income potential helps you with short- and long-term financial planning. Since real estate income is commission-only and success is directly related to performance, a real estate agent’s income can significantly fluctuate. However, there are steps new real estate agents in Colorado can take to achieve success. Read on to learn how much real estate agents make in Colorado.
How Much Do Real Estate Agents Make in Colorado?
If you’re looking to increase your earning potential, getting your real estate license in Colorado may be a smart investment. According to the Bureau of Labor Statistics data from May 2019, the annual mean salary for a Colorado real estate sales agent is $76,850. That makes Colorado the fifth top-paying state for real estate agents, coming in behind New York, Massachusetts, Connecticut, and Alaska.
New York: $111,800
Massachusetts: $84,180
Connecticut: $79,780
Alaska: $79,360
Colorado: $76,850
Because these numbers reflect the annual mean wage, they're just the average — meaning you could potentially earn a lot more if you put in the effort. In fact, Colorado sales agents in the 90th percentile earn up to $128,350 a year.
Ways to Succeed as a Real Estate Agent in Colorado
While Colorado real estate agents are in a higher salary bracket than agents throughout the country, there are still ways for Colorado real estate agents to maximize income potential further and continue to achieve success.
According to David A. Ness, real estate advisor, Thrive Real Estate, real estate agents should focus on finding success on behalf of clients, as well as finding the brokerage that is the best mutually exclusive fit.
“For your clients, focus on becoming an advisor, not an agent," said Ness. "For your brokerage, focus on working at a company that provides the best culture and NET profit — not the highest splits.”
The following are additional ways to become a successful real estate agent in the Colorado market:
Define your brand. Defining your real estate brand will ultimately help you stand apart from other agents in the market and build brand familiarity with potential clients. Start by differentiating yourself to know how to market you and your business most effectively. Questions you can ask yourself are, “what is my niche?” “what unique skills do I have?”, or “how can I set myself apart from other agents?” Once you define your differentiating factors, use these to build your brand and message. Being consistent with your messaging will build brand familiarity, attract new business, and increase earning potential.
Understand your audience. Define your target audience, and reach them the way they are consuming information. For example, if your target audience is first-time homebuyers, find out their demographic information and engage with them on the communication channels they use, even if they aren’t your preferred method.
Stage to sell. According to the National Association of Realtors (NAR), 77% of buyers’ agents said staging a house helped buyers visualize the property as a future home. Completing a professional home staging course or hiring a professional home stager could be a smart investment to help ensure potential buyers see themselves living in your listings.