Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (57915)	7/17/2006 9:51:48 PM
From: XoFruitCake	Read Replies (1) \| Respond to of 306849

The sales agent and listing agent split the spoil (most of the time unless specified in the mls otherwise). Then the agent will split it with his/her broker (most of the highly productive agent strike 80/20 deal with the broker (broker take 20%) but agent has to pay for desk fee, marketing stuff etc.). Then agent has to pay for personal assistant from their own pocket... etc.

To: Don Green who wrote (57915)	7/18/2006 2:01:07 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

How much does a real estate agent make on a 6% commission on a $600,000 sale? The math is straight-forward. $36,000 Commission paid by Seller Assuming one agent represents the Seller and another the Buyer, $18,000 paid to the employing broker of each of the two agents The employing broker will pay a new agent $9,000 (50%) or a high volume agent $14,400 (80%). If you're new that $9,000 gross commission may be your only commission that year, or like many agents its one of your four sales, for a total gross pay of $36k that you must use to pay your E&O insurance, say $2k and your other expenses. Obviously the high volume agent makes a higher percentage and on more sales. But to maintain this volume they need to employ assistants, each earning perhaps $35k. Often big name agents don't pay for assistants but take a split while someone else does the work. A younger agent does all the work on the listing the big name agent brought in. Say they split the $14,400 50/50, so each get $7,200. This $7,200 is less than the $9,000 the young agent would have received on their own, but then its unlikely they would have received the listing. So if you're a big name agent selling 200 properties per year at an average price of $600k, your cut is $720k. Not bad at all! But why are they a big name agent? Because they spend a lot of money on advertising, often 50% of what they bring in. That still leaves them with an income of say $320k after expenses - during the good years. So its good to be king. If you're going to waste your time being a real estate agent, make sure you're the high volume successful agent making $320 and not the other agent netting $30k. .