A top agent will net just about 1% after taxes, a newer or less productive agent will net around .5% assuming a 6% commission. take a $500k sale at 6%, gross commissions are $30k. Split between 2 offices and 2 agents. If you are an average agent, the office will take 6% off the top for administrative costs and then take their 35% cut of the $15k your office gets. They will then deduct any "Transaction fee" they charge for handling the paperwork. At larger agencies this can run between a low of $225 per transaction to a high of about $500. If you are starting out, the company will usually agree to let your errors and commissions insurance come out of your first three deals and the same for any technology fees they charge for the use of their proprietary systems. E and O insurance can run as much as $1,800 a year or be as low as $600 a year (It's a profit center for some large outfits) and technology fees run $75-$100 per month.You will have to join the MLS, the local Broker's association and get an electronic key to open lockboxes. You will also need a rider on your auto insurance to cover passengers. If you are prudent, you can expect your monthly nut to stay in business to run $600-$700 per month exclusive of wear and tear on your vehicle and gas. There's a reason 90% of agents drop out of the business within 2 years. And Brokers? the median income for brokers is about $60k nationwide. And assuming a gross commission of 6% is optimistic. A little less than half the listings of normal sales are at 6%, about the same % are at 5% and a few are at 4% (Usually properties priced above $1MM). Short sales are usually 4% and REO either 5% (Most) or 4%.
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A top agent will net just about 1% after taxes, a newer or less productive agent will net around .5% assuming a 6% commission. take a $500k sale at 6%, gross commissions are $30k. Split between 2 offices and 2 agents. If you are an average agent, the office will take 6% off the top for administrative costs and then take their 35% cut of the $15k your office gets. They will then deduct any "Transaction fee" they charge for handling the paperwork. At larger agencies this can run between a low of $225 per transaction to a high of about $500. If you are starting out, the company will usually agree to let your errors and commissions insurance come out of your first three deals and the same for any technology fees they charge for the use of their proprietary systems. E and O insurance can run as much as $1,800 a year or be as low as $600 a year (It's a profit center for some large outfits) and technology fees run $75-$100 per month.You will have to join the MLS, the local Broker's association and get an electronic key to open lockboxes. You will also need a rider on your auto insurance to cover passengers. If you are prudent, you can expect your monthly nut to stay in business to run $600-$700 per month exclusive of wear and tear on your vehicle and gas. There's a reason 90% of agents drop out of the business within 2 years. And Brokers? the median income for brokers is about $60k nationwide. And assuming a gross commission of 6% is optimistic. A little less than half the listings of normal sales are at 6%, about the same % are at 5% and a few are at 4% (Usually properties priced above $1MM). Short sales are usually 4% and REO either 5% (Most) or 4%.
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