How much does a Realtor REALLY makes?

Question

When he helps buying a house 2.5 comiisiion in california (bay area). what are the expenses for them>

Answer 1

1.5% goes to him

Answer 2

I can see a few ignorant people trying to give you expert opinion. Let me try to put in some facts and I hope they can be useful.

What the agent collects at the closing is far from what they take home. They usually work for a real estate company the takes sometimes half of the closing commission. These agents have to pay for all their expenses such as a reasonable car for drive their customer around, profession working attire, office supplies, professional licensing fees, continue education, not to mention gallons of gas that may not end up in sales.

Their brokers will have to pay for rent, utilities, secretarial and accounting staff telephone, insurances etc,etc and etc. So that 2% or 3 % suddenly shrinks to a few bucks. Few members of the public knows the true cost of real estate agents.

As to how much an agent makes? That depends on the local area and what type of real estate and the different can be shocking. Some residential agents would be constantly in the 6 figures. However, most of them struggle, $25,000 $35,000, $50,000.

In commercial and I managed one of the largest, and when I say commercial, I do not mean a gas station, a small warehouse etc. Some of them takes home over a million a year. If they make less than $300,000 take home they are fired. However if you are from the outside, you would say what a greedy S.O.B. Our overhead cost for one of those guys is over $100,000 per person. With 20 agents in that office, our cost is $2 million before the first sale. We have 4 of those offices. Most of these agents are former lawyers, CPAs and high performance executives that can deal with top people at the corporate level.We listed a $1,400,000 building. Our cost of the brochure and presentation was $150,000 and the web site was another $25,000. We had many listing and one can go broke in a hurry.

Answer 3

Most of the time a Realtor's Broker will take a percentage of their wages - up to 50%. Sometimes the agents have to pay for their own advertisements they do for the house and any fliers they have printed, etc. I have sold houses that I have made almost no "profit" on, and I have sold some on the first day listed and not had any cost into them. If the agent is working for a buyer, there is less cost into it for the agent. When you average everything out over the year, some agents make a LOT of money, and others barely get by.

Answer 4

My mother was a realtor, and she worked her butt off. Long days, late hours, weekends. Kissing butt non-stop, hustle and bustle, and she just made enough to keep herself alive. She even worked in a upscale area in Ohio. The competition these days is outrageous. There are more realtors in California than houses that get sold each year. So that means if one realtor is selling 5 houses a year, there are at least four realtors that are selling zero. It's a profession that a lot of people think they can get into easily, with minimal schooling, and make a ton of cash, but that's just simply not the case.

Answer 5

In maximum states residential comissions are in accordance with a itemizing that's many times a usual 5 or 6 %. (some companies are in accordance with a smaller proportion however the consumers agent will ought to be paid a minimum of the two.5 % if not the consumers agent will merely tutor bigger comissioned listings) Then the itemizing agent gets a million/2 and the consumers agent gets the different a million/2. Then reckoning on how plenty of their place of work split on contract is, the agent has to furnish that proportion to their place of work off the completed volume of their fringe of comission for each deal at each and each ultimate. right this moment maximum brokers ought to renounce to 50% comission on each and each deal while you're fortunate the agent is an exceedingly huge agent he/she will grant a min of 10% to the broking provider after each and each deal or various the small new companies or an exceedingly independant company will provide the agent a a strategies better split however the agent has to pay out month-to-month agent expenses...as quickly as the agent has a comission examine do away with taxes,each and every now and returned brokers ought to provide money to their consumers or purchase a dishwasher, ect to close a deal...a itemizing agent has to take money out of his pocket and pay for many merchandising and there is not any guarentee the valuables will sell or the deal will close so he loses money from his each and every year earnings. particular very fortunate brokers working make solid money yet maximum do not close deals plenty consistantly the place they exceed a customary expert earnings...

Answer 6

expenses? usually just your average fees and what not. title work is quite lengthy and expensive, plus it's a massive headache at times. essentially the commission you're paying them is to handle all that without bugging you about it.

depending on how much they sell the house for and the profit made off it, realtors can make decent wages/commissions from the sale. not sure if they charge points or flat percentage but I have known some realtors who walk away from sales with about 8k paychecks. that is rare but usually it's around 4-5thousand.

Answer 7

Impossible to say. We have no idea of the expenses. A few are: E & O Insurance, MLS fees, lockbox fees, automobile expenses, office expenses, office split. You have to know all of this and more in order to determine exactly what the REALTOR nets. It's not near as much as what the public thinks.

Answer 8

An obscene amount of money for being nothing more than a middle man who, over a period of time has convinced the general public that he or she is VITAL to the private sale of personal property between two consenting parties. This is purely my personal opinion, as I believe that, since they have essentially NOTHING invested besides renting an office and computer, they don't deserve to get any of the profits or reap the benefits of your hard work and investment. They are nothing more than glad hander's and pariahs, or leeches, in my PERSONAL opinion. I have had very frustrating experiences with Realtors and Agents, so I don't care for paying for incompetence and aggravation. I also don't tip for poor service in a restaurant. If you want my money, do something deserving of earning it, and I will gladly share. Thanks for reading this far.

Answer 9

commission less any and all expenses connected to the sale