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How much does the average real estate agent make?

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  • Jul 26th, 2012 10:24 am
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Deal Addict
Mar 27, 2011
1281 posts
89 upvotes
Nowhere
Prinsesa wrote:
Jul 2nd, 2009 6:09 pm
Wow they don't make a lot at all :/
But yeah, my real estate agent told me that "bytheowner" sellers are usually hiding something ? is that true ?
OMG. Of course your agent would say that. They take away from his/her business. If that was the case more than 50% of the people in Ottawa would be hiding something. For you GTA folks, you really need to see the extent of how many people sell by themselves with a minimal fee ($1000 or so) to places like Grapevine, ComFree, etc. The trend is rising in the GTA too. The real estate board wants to scare the crap out of you. In reality is your lawyer who does most of the hard work and does the title search, gets you title insurance, makes sure the deal sounds ok and truly protects your interest. Not saying all agents do not care for your interests but they have very little to do with the deal ultimately going through and being legal and protecting you. That is why in addition to paying the agent, you are also paying a lawyer.


To OP: Every Tom ***** and Harry is a real estate agent. Only 1% of them really make decent money and are at the top of their game.
Jr. Member
User avatar
May 18, 2008
184 posts
67 upvotes
Victoria
If you are willing to be creative there is SOOOOOOOOOO much opportunity out there in real estate right now. 2011 was my first full year and I performed 28 transactions and $14,000,000+ in sales in a very slow market in Victoria, BC. This year I am on pace for 55 to 60 transactions and over $25,000,000+ in sales. I do a discount business model (lower full service commission for listings, flat fee listings, and cash back to buyers). Works like a charm as the other 1300 REALTORS® in Victoria are still stuck on their old school ways.

If you go into real estate doing high commissions hoping people will call you.....good luck, the consumer is getting smarter by the minute.
Marko Juras, REALTOR® & Associate Broker @ Fair Realty, Victoria, BC - "I believe in a competitive marketplace and real estate commissions should be no exception."
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Jun 29, 2012
595 posts
23 upvotes
TORONTO
Most first-year real estate agents earn very little, primarily because they are struggling to learn the business while they build a client base. As the years go by, agents can rely on referrals from satisfied clients to continue building their business. According to Salary.com, most real estate agents earn on average between $34,000 and $45,000 annually.
Deal Addict
Jul 11, 2010
2949 posts
134 upvotes
Realtors (and salespeople in general) are the most skillful and tactical thinkers when dealing with people and emotions. Do not underestimate them. Their job involves a lot of creativity and adaptation and their compensation should be treated as such.

That being said, their line of work is similar to athletes and artists. The higher the results/figures, the better salary. I would imagine their salary to range from somewhere slightly lower than a steady office job (like ~30-40k) to millions.
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Jun 11, 2001
7697 posts
320 upvotes
It's a learnt skillset... and of course if you are a natural very good social person all the better. usually around 6% split between buy/seller. MLS is where most of their power resides... and that is good for $99 now (that's why they fought it so hard). Credentials don't mean much... it's a 'moving' business... more sales more cash... Got a buddy who is uneducated... got his RE license soley for the cash. Worked out for him as he takes in about 100-130K / yr. I can't stomach sales but that's just me.
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Deal Addict
Apr 16, 2012
3525 posts
650 upvotes
Greely
What if I became a real estate agent with this type of commission:

I look at the market value of the house which is about $300K. I say, if I sell it for that much, then I get just 1%. Which is 3K. However, for every dollar I manage to fetch over 300K, then I get 10% of that.

If I managed to sell a 300k valued home for 320k, then I get 5K

Would this system work?
Deal Fanatic
User avatar
Feb 16, 2010
5200 posts
161 upvotes
Idk if anyone brought this up before but lets not forget all the advertising costs

This job is similar to IA/Financial advisor jobs... sales sales sales
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Aug 3, 2006
3460 posts
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Rainne wrote:
Jul 25th, 2012 11:49 am
Realtors (and salespeople in general) are the most skillful and tactical thinkers when dealing with people and emotions. Do not underestimate them. Their job involves a lot of creativity and adaptation and their compensation should be treated as such.

That being said, their line of work is similar to athletes and artists.
You're comparing a real estate agent to the likes of Kobe Bryant and the Foo Fighters?
Newbie
Jun 18, 2012
76 posts
5 upvotes
Alberta
jagsjay wrote:
Jul 2nd, 2009 9:18 am
every tom,joe,,lee,mohammed,akbar are real estate agents....
how much do they make?

and from my understand they get commission from the seller whether they are on the buyer or seller side

for example, if house is sold for 200K, 10% commission so 6% for seller agent, and 4% for buyer agent...is this how it works?


i wud think some agents make 100K+ but most make under 60K?
The norm for real estate agents are around 50-60K. Those cracking 6 figures are well-established with a good client base, and I'm sure not a lot each that level. The hardest years will be your first. In terms of commission, from what my friend told me its more like 7% on the first 100K and 1% on the remaining and that is all split between the two agents. You also have to worry about paying the service fee to your brokerage house which ranges from taking a commission per sale to taking a lumpsum at the end of each year.
Deal Addict
Oct 1, 2008
1847 posts
330 upvotes
Real estate agents services are to home buying what Monster HDMI cables are to TV buying.
Jr. Member
Feb 15, 2012
175 posts
17 upvotes
techcrium wrote:
Jul 25th, 2012 12:21 pm
What if I became a real estate agent with this type of commission:

I look at the market value of the house which is about $300K. I say, if I sell it for that much, then I get just 1%. Which is 3K. However, for every dollar I manage to fetch over 300K, then I get 10% of that.

If I managed to sell a 300k valued home for 320k, then I get 5K

Would this system work?
This type of commission would make you lowball people so that you can get the extra 10% on the above list dollars. It might work in a flat/falling market, but you'd get minimal business in a rising market.
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