donald e
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ok here is the scoop, most commission agents get a piece of the pie and each agency is different. basic standard is a 6% commission on a sale, if its in house, the listing and selling agent work for the same broker, the broker gets 3% and the agents split 3%, ie. 100,000 sale agents get 3,000 and split it 1500 per agent. if its a dual transaction two different agencies most brokers pay the same ie, 100,000 sale 3,000 goes to one agency 3000 to our agency some brokers will split it equalyy some might give u 40% or only 1200, as you can see a broker would rather do an in house deal where both lising and selling is through one broker, they make more money that way. Now two things you have to keep in mind, 1. all taxes come out of your share, the broker will probably 1099 u as a self employed contract employee therefore you are responsible for all taxes, federal, fica, futa, ss, and unemployment, 2. lets say u sold 1,000,000 dollars worth of real estate a year, thats at 6% commission is 60,000 split between you and the broker, hmmmm ur share is 30,000, now split that between you and the listing agent, wow thats 15,000 for you unless you happen to be the listing and selling agent on all the properties chances of that are slim ;u may get to double dip as its called on a few but not all of them, SO AS YOU CAN SEE ANYONE WHO ADVERTISES THEMSELVES AS A MILLION DOLLAR SELLER IS REALLY HOT STUFF, THEY MIGHT MAKE 15,000 BEFORE TAXES AND EXPENSES. LOL. look through your local papers and see how many advertise as a million dollar seller big deal right, a multi million dollar seller might make 30.000 now someone selling 6 million is making 90,000, its a tough career field, lots of part timers, and lots of turn over especially in the first year, |
Alterfemego
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It depends on their the financial arrangement they make with their Broker. Just as an example: a newbie would most likely be on a 45% commission rate until they reached a certain level of sales dollars. So if you (a newbie) had a listing at 6% and another agent brought the buyer, you would first split the 6%, in some cases 45/55. 55% to listing broker. Then from that 55% you would get 45%, however... all of your expenses, i.e., advertising, office equipment fee's etc. come out before you get a check. From your check you have all of your own personal expenses.
So now that I have rambled on and on, most make just enough to live, a few make pretty good money. And in today's market, most are starving! |
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