This from a Realtor in response to a post on how Realtors walk away with 6% or 7% in commission sales and just rake it in…not my words, of course!
“I just blogged about this after reading your post where the person ranted and raved about how Realtors pocket 6% to 7% per sale which is false. If you sell $4 million dollars worth of property or 13 $300,000 transactions you will net below $30,000 per year after expenses. People should probably know this.”
Now take away income taxes and property taxes…..
I think this person may be with the wrong broker. I have a license and have always averaged between 2% & 3% on my side of a transaction. Now, I may rebate if the seller also buys their new residence with me, but it’s not more than 1%. If you are conservative and say 2%, that number comes in at $78,000. Now, less MLS and broker dues, that would take the number down to about $60,000 (for me anyway, at Keller and Remax before). Then, there is expense. Signs, advertising, etc. But every self-employed person has expenses. An agent can’t complain because they have expenses everyone else does.
Now, take that those numbers and work the figures if you sell twice that amount. Say $8,000,000 in transactions. The cap on the broker fee is the same, MLS dues don’t go up with sales, all of a sudden you are netting six figures (unless you are spending too much on advertising, then that is on you).