• 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/year4 Sales/year10 Sales/year
Gross Commission you earned:$16.800$33,600$84,000
1) Annual office dues:360360360
2) Monthly office fee ($75/month):900900900
3) Office commission split (20%):5,04010,08025,200
4) E & O Insurance ($50/sale):100200500
Realtor Expenses:
1) Annual Board Dues (SEVRAR):375375375
2) Annual ARMLS Dues:284284284
3) MLS Fees:264264264
4) Lock Box Replacement (2/year):170170170
5) Signage:80160800
6) Marketing:2004002,000
7) Month Fuel Cost $120.00120240600
Total Expenses:$7,893$13,280$21,453
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.