- Considering the change in the real estate business, in order to earn a decent income, you must work harder than ever before.
- The average real estate professional is producing one transaction per quarter and working approximately 50 hours per week. If you are part of a franchise organization, you will also be expected to pay monthly franchise fees, and annual fees.
- In addition, as an associate working for a traditional real estate company you will be required to join various membership organizations, which reduces your gross income.
- There is an alternative option available to you that will limit the time and work required to work with buyers and sellers that will produce a higher net income to you.
- .By joining our network of referral agents, you can work part-time generating leads to our membership of professional agents that will generate a higher net profit to you without being involved in the real estate transaction.
- When you are ready to become a full-time agent, we can refer you to one of our affiliate brokerages that will meet your personal budget.
Lets Do the Math!
A typical sale of an average home in Maricopa County is $350,000 which will normally generate a gross commission of about 3%. The table below illustrates the typical erosion of the commission payment when all factors, fees and expenses are taken into consideration.
|2 Sales/year||4 Sales/year||10 Sales/year|
|Gross Commission you earned:||$16.800||$33,600||$84,000|
|1) Annual office dues:||360||360||360|
|2) Monthly office fee ($75/month):||900||900||900|
|3) Office commission split (20%):||5,040||10,080||25,200|
|4) E & O Insurance ($50/sale):||100||200||500|
|1) Annual Board Dues (SEVRAR):||375||375||375|
|2) Annual ARMLS Dues:||284||284||284|
|3) MLS Fees:||264||264||264|
|4) Lock Box Replacement (2/year):||170||170||170|
|7) Month Fuel Cost $120.00||120||240||600|
|Net Commissions before tax:||$8,907||$20,320||$52,547|
- The above table clearly illustrates that when you look at all of the fees and expenses involved in association with a typical real estate company, you only get to keep about 70% of the gross commission.
- If you work for a franchise company you will be required to subtract the Annual Fee, Monthly Fee, and Franchise Fee charged on each transaction.