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Realtors making a killing in this market!

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  • Mar 20th, 2017 8:53 am
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[OP]
Sr. Member
Apr 21, 2014
980 posts
216 upvotes
Alberta

Realtors making a killing in this market!

I have a realtor friend on facebook and he has already booked 13 million dollars in transactions in q1 of the year already. Assuming he gets on average of 2%, does that mean he has already made 260k in the first quarter alone? He is definitely a hard working realtor and is really good at his job but didn't realize you could make so much as an agent.
16 replies
Deal Addict
Nov 2, 2013
4479 posts
740 upvotes
Edmonton, AB
Buying and selling homes is largely a hit and miss. The realtor market is saturated and there are a lot of failed realtors who hardly make any sales and lease the cheapest Mercedes Benz in hopes of giving the public a false view of success. On the other hand there are the ones who are very good and have their name passed around lots. They rely a lot on referrals and networking to stay above all the other competitors. It's kind of like sales people, you have the ones who are great at it and the others who are not.
Member
Nov 24, 2015
375 posts
96 upvotes
theres no doubt ur buddy made a killing but he probably didnt take home 260k... there's brokerage fees (and sometimes the branch takes a cut of his fees per transaction) as well as taxes... but all in all probably still not a bad take home pay for a few months.

Note theres also relators on the other end of the spectrum that do like 2 or 3 houses a year.
Jr. Member
Jan 12, 2010
112 posts
15 upvotes
My first tr0ll post: Also the Real Estate Sector in Toronto and Vancouver is crapping themselves these days due to dwindling supply = meaning fewer houses being sold = the pie getting smaller for fewer agents to make money, they want the government to build more supply but its too expensive to develop land nowadways to much red tape and too expensive for contractors to setup utilities, not to mention all the green belt crap. We'll see fewer and fewer developments while the Feds crank up immigration to continue to oversaturate the Toronto Vancovuer markets. Toronto prices will shoot up 20% again this year, soon the Foreign buyer tax effect will wear off and we'll see Vancouver prices also go up 15% - "....Buhleeve Me.....-_-"
This is also the largest transfer of wealth from the younger generation to the older "retiring generation"...as the older generation unload their overpriced properties to debt laden young couples / rich foreign buyers. In the end, when the baby boomers die off, we'd hit a demographic cliff where there isn't enough buyers, the younger generation who bought in at this time will be left holding the bag.
The gap between the haves and have-nots will continue to increase, cite random Wikipedia article lol:
https://en.wikipedia.org/wiki/M-shaped_society
Deal Fanatic
User avatar
Nov 6, 2010
7856 posts
746 upvotes
As stated, for every very successful realtor/broker, there's 100 that are doing only "ok". It's like any other sales role, if you're good, word gets around and you get referrals.

Also, just because your friend did 13M in sales for Q1 doesn't mean the rest of his year will follow suit. If there's a dead season he might get little to no sales for a month or two and then spike another month. It's quite volatile in that sense and measuring realtor/broker "salary" as a result is a bit wonky.
Sr. Member
User avatar
Nov 19, 2014
799 posts
219 upvotes
FirstGear wrote:
Mar 15th, 2017 11:28 pm
Buying and selling homes is largely a hit and miss. The realtor market is saturated and there are a lot of failed realtors who hardly make any sales and lease the cheapest Mercedes Benz in hopes of giving the public a false view of success. On the other hand there are the ones who are very good and have their name passed around lots. They rely a lot on referrals and networking to stay above all the other competitors. It's kind of like sales people, you have the ones who are great at it and the others who are not.

I don't get this forum's obsession with hating on the "cheapest Mercedes Benz" or "budget baller BMWs" or entry level Lexus.

You think the vast majority of successful people care? No one successful looks at your $60,000 BMW or Mercedes and thinks your baller once they get to the part about what you do for a living and it's not impressive.

Instead of worrying about how others view you because of how "cheap" your German car is (I bet 99% of the people on this forum can't even change a tire, do an oil change or have never replaced a part under the hood), worry on actually achieving prestigious stuff.
I'm At The W, But I Can't Meet You In The Lobby, Girl I Gotta Watch My Back, Cuz I'm Not Just Anybody, I Seen Em' Stand In Line, Just To Get Beside Her, That's When We Disappear, You Need GPS To Find Her, Oh That Was Your Girl? I Thought I Recognized Her."
Deal Addict
Nov 24, 2004
3223 posts
294 upvotes
Toronto
Depending on the arrangement, the agent's share of the commission would typically be shared somehow with his/her brokerage. Additionally, many or most of his/her expenses (car, marketing materials, licensing, etc.) would have to be paid out of those funds as well.
[OP]
Sr. Member
Apr 21, 2014
980 posts
216 upvotes
Alberta
JHW wrote:
Mar 16th, 2017 1:42 pm
Depending on the arrangement, the agent's share of the commission would typically be shared somehow with his/her brokerage. Additionally, many or most of his/her expenses (car, marketing materials, licensing, etc.) would have to be paid out of those funds as well.
Obviously this is gross income and there will be taxes etc. however he would be able to expense his car payment/gas/maintenance. Utilities/property tax/mortgage interest for home office so effectively paying much less tax than someone working for someone making the same salary.
Deal Fanatic
User avatar
Jul 12, 2003
7350 posts
693 upvotes
Markham
abc123yyz wrote:
Mar 16th, 2017 2:22 pm
Obviously this is gross income and there will be taxes etc. however he would be able to expense his car payment/gas/maintenance. Utilities/property tax/mortgage interest for home office so effectively paying much less tax than someone working for someone making the same salary.
Not 100% of them are tax deductible.

Expense is still an expense. It is not like you lease a car for a $1000/m and you don't have to pay for it.,
Those are only tax deductible amount.

Like others mentioned, there are few successful one make millions a year but most barely making anything at all or just barely survived. Open the newspaper and check how many realtor out there, how many of them you think they made over 200k a year?
Retired Forum Moderator February 2009 - June 2015
Newbie
Mar 4, 2007
46 posts
4 upvotes
UNOAIMX wrote:
Mar 16th, 2017 10:16 am
My first tr0ll post: Also the Real Estate Sector in Toronto and Vancouver is crapping themselves these days due to dwindling supply = meaning fewer houses being sold = the pie getting smaller for fewer agents to make money.
^^ pretty much this. My brother is a Real Estate agent and he says all the realtors are praying that housing market slows down as there is not enough supply of for-sale homes leading to bidding wars, which means lot of them go home empty handed. Not as rosy as it looks from far away.
Deal Guru
Jun 30, 2006
13803 posts
2339 upvotes
Toronto
Sanyo wrote:
Mar 18th, 2017 1:20 am
Sam McDadi be killing it!
He needs to pay for all that Botox.
Deal Fanatic
Dec 27, 2013
5824 posts
1929 upvotes
Toronto
abc123yyz wrote:
Mar 15th, 2017 8:49 pm
I have a realtor friend on facebook and he has already booked 13 million dollars in transactions in q1 of the year already. Assuming he gets on average of 2%, does that mean he has already made 260k in the first quarter alone? He is definitely a hard working realtor and is really good at his job but didn't realize you could make so much as an agent.
your friend is like 1% of realtors. doable but most are hungry.

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