What is an Average Real Estate Assistant Salary And Bonus Structure?

– Hi, I’m Vanessa Rosenblum. I’m the president of Pro R.E.A. Staffing. Pro R.E.A. Staffing is a
search-and-placement firm, and we specialize in placing
real estate assistants on real estate teams across
the United States and Canada. And on this YouTube channel, we focus on fostering careers in real estate and helping realtors grow
great real estate teams. Every six months, we put
out an updated salary guide, and as I record this, it is January of 2019, and it’s time to update you on what real estate
assistants earned in 2018. Now, before we get into it, don’t forget to hit
Subscribe and ring the bell so that you’re notified
when we post new content. I try to put out new
content about every week. (downtempo music) So in 2018 we placed 81 candidates across the United States and Canada, but for the purpose of the data set we’re talking about today, we’re going to throw out the salaried buyer’s agents, the property managers,
and the very high-level, senior-level roles, and we’re just going to focus on real estate assistants. However, under that umbrella
of real estate assistant, we have a lot of different job titles and different levels of responsibility. So we’re talking about
executive assistants, marketing coordinators,
listing coordinators, transaction coordinators,
and a few other roles. So if you want the details,
the granular details, you’ll want to go to our website and download our salary guide, and I’ll include the link
in the description below. Now, the big question
everyone wants to know is, what is the average starting salary of a real estate assistant? And our average for 2018 was $60,988. This is the average base starting salary. This does not tell the whole story. We’ll talk about bonus
structures in a minute. And I also want to make
sure you keep in mind that most of our placements happened in the San Francisco
and Los Angeles markets. These are high-end markets. The salaries are higher than the rest of the country, so this
is a skewed average. Again, check out the salary
guide for more details. The other question people want to know is, did salaries rise in 2018? And the short answer
is, yes, a little bit, but it depends on where you live. Way back in 2016, we were telling people in San Francisco that they needed to pay at least 55,000 in base salary to get a licensed, experienced
real estate assistant. Over the course of 2017,
we saw the market tighten considerably, and by the end of 2017, we were telling people they
had to pay at least 65,000, so about a $10,000 jump in base salary. Now, things cooled off in 2018, and there really wasn’t much
of a change in San Francisco. However, going down to Los Angeles, we saw that same kind of
phenomenon happen in 2018. Back in 2017, our average starting salary for a real estate assistant
in Los Angeles was 52, 53,240. Fast-forward one year, and
our average starting salary for 2018 was 67,957. That’s a sizeable increase. Now, we didn’t place all of the assistants in Los Angeles in those two years, and it’s possible that just we happened to do more high-level placements last year versus the year before. So take that with a bit of grain of salt. But we still did see an increase, and I can tell you from recruiting in that market over the course of those two years, we
definitely saw a tightening of the availability of candidates and people’s willingness
to pay more for top talent. So that’s where we’re at at this point. However, with the market
starting to soften, I anticipate that those numbers are going to level off, and they might even go down a little bit in 2019. We’ll have to see. Now, here is a breakdown of
the average starting salaries across the United States
in 2018 based on our data. This is just our placements. I’ve only included the regions in which we did at least three placements, so if you want more detail, you’ll want to download that salary guide. So I also want to point out that, up in the northeast, the 57,000, all three of our placements last year were in the New Jersey market. None of them were in New York City. We do currently have an opening for a marketing director in New York City, and that position will
pay over 100,000 a year. Also, we did a couple
hourly positions in Arizona. So that 40,000 is just
for the salaried roles, but we placed two assistants
on an hourly basis, and their average was 18.50 per hour. So that gives you part of the story. These are the base salaries across most of the US, or parts of the US. But most of our placements, I’d say about 60 to 70 percent of our placements, also include some kind of bonus structure, and the bonus structure can add anywhere from 20 to 35 percent, to a candidate’s total salary. So let’s talk about bonus
structures for just a minute. When it comes to structuring a bonus for a real estate
assistant, there are no hard and fast rules, and we’ve seen all kinds of creative
structures, but there are a few that are commonly accepted
as best practices. The most common is just
a flat bonus amount per closed transaction. So every month you will
get how many transactions you closed the month before, multiply that by the bonus amount,
and there’s the total bonus. It’s clean, it’s simple, it’s easy, it works well for someone who is actively involved in
the transaction process, and you want to tie their compensation to getting those transactions closed. The amount of these
bonuses all-in for the map. For a high-volume sales price team, it might be 25, 50, 100
dollars per closed transaction. For a luxury team, who does maybe 10, 20, 30 deals a year, it could
be $500,000 per transaction. It’s really all-in for the map. The next common practice, and this is one that I do not advocate
for, is a percentage of GCI. So every month, we look at how many, what the total GCI was for the agent or the team, and the assistant
gets a percentage of that. I don’t like this because we want assistants focused
on the back office. We want them to think like an assistant, think about systems, and
procedures, and customer service. We don’t want them calculating
their commission split on each of the individual deals. We’ve just seen, too many times, that, when an assistant is paid like this, they start to think more like an agent, and maybe eventually want to be an agent. A lot of my clients would like to avoid that scenario, and so not tying their bonus to commission is a good plan. Another practice that we see that I do advocate for is tying
bonus to sales volume goals met. So for example, if the goal for Q1 is to do 10 million in sales volume, or 20 million, whatever,
there’d be a bonus at the end of the quarter
for hitting that goal. And it could be quarterly, it could just be when these benchmarks are met throughout the year, there’s
a bonus tied to them. That works really well. It’s clean, it’s easy to
measure, and makes sense. One final option to
consider is tying the bonus to certain goals met
or projects completed. It might be, for a marketing coordinator, when the new website goes
live, you’ll get a bonus of x. For every month that the
monthly newsletter goes out on time and we get 25% open
rate, you’ll get this bonus. So we want bonuses to be measurable and achievable with a stretch, and tied to the role of the candidate. The final piece of the
compensation puzzle is benefits, and we still don’t see a lot of our clients offering
strong benefits plans. More and more are offering some money toward health insurance, and almost all of our clients, all of them, really, offer at least five days of paid vacation in the first year, and that usually goes to 10 days in year two. Keep in mind, for higher-level positions, or for more senior employees, asking them to take only five days of vacation in year one probably won’t work. You probably won’t get them to leave their current job for that,
so you may have to offer more. So now you know what you need to pay your real estate assistant, but do you know how to find the assistant who is the perfect fit for your business? When you finish watching this video, the next one you should watch is my presentation on how to find your fit, how to attract the best candidate for your business in this
competitive employment market. So I will link to that above, and then, while you’re on our website
downloading the salary guide, make sure to check out
our other free reports. We have an interview guide,
and a how-to-hire guide, and they’re both great resources. Don’t forget to hit Like, if you liked this video, and subscribe. I will see you on the next video. Cheers to a fantastic 2019.

2 Replies to “What is an Average Real Estate Assistant Salary And Bonus Structure?

  1. 7:00….a Good R.E. Agent/leader will empower his or her employee to work as hard as possible and be the best they can be and LET THEM decide what's in their best interest.

  2. Thank you, very informative. I am entry-level to the real estate field, I have always been interested and I’m very excited to start off my career as being a real-estate assistant and can’t wait to become a real-estate agent in my future.

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