? about average commissions

[hawwk11]

I have been looking at the stats and i see that most agents make an average of about 30k per year. Does anyone know if this if based on full or part-time agents?

I hear that most or alot of real estate agents are part time, is that true?

[kensmith]

I would consider most agetns part time, but that isn't because they have another job. They just don't put 40 hours into their businesses. $30k actually sounds about correct as most new agents make uder $20k a year and there are more of them than agents that make real money. The worst part is that number is gross, before taxes and other expenses...why would you bother?

[hawwk11]

Thanks, Ken... That is exactly what i have been thinking lately as to why bother doing it if you're going to only gross between 20-30K??? From your experience do you think that an agent who were to actually put in a good 40 hours a week would actually be able to make a living off real estate? To gross 20K in California simply wont cut it for me.

Thanks,I would consider most agetns part time, but that isn't because they have another job. They just don't put 40 hours into their businesses. $30k actually sounds about correct as most new agents make uder $20k a year and there are more of them than agents that make real money. The worst part is that number is gross, before taxes and other expenses...why would you bother?

[kensmith]

Depending on what part of Cali you are from you could be looking at a really hard market to get into currently. There are WAY to many agents in California and starting new would be hard.

For the most part I think this might be a hard time in most markets to get started as buyers are taking their time, sellers are still greedy and think their home is worth more than it is, and their are to many agents compared to the number of transactions. If I had a steady job that I didn't hate this wouldn't be the time to jump into real estate.

Can it be done...yes no matter what the market is. If you are willing to work hard (most likely 7 days a week to start), have contacts already that will buy or sell with you, you have 6-9 months of reserves (living expenses plus advertising costs), and you understand this is a business not a job. You will get paid only if you can convert leads into sales. At that you will pay a lot of money to find out if you can do it.

Hope that helps.

[hawwk11]

This helps a bunch Ken, I appreciate all the honesty and not that i was hoping to hear that it wouldn't be too easy to get into real estate sales but something was telling me that it was much harder than everyone was making it to be, i mean i have always heard that it wasn't exactly a walk in the park like some people think but it was still presented to me as seaming to be a little too easy. I have been in contact with 2 different brokers who both told me when i asked how do you get into the business to start off with money wise and there responses were to have about 3-6 months salary saved to support yourself, does that sound right to you?Depending on what part of Cali you are from you could be looking at a really hard market to get into currently. There are WAY to many agents in California and starting new would be hard.

For the most part I think this might be a hard time in most markets to get started as buyers are taking their time, sellers are still greedy and think their home is worth more than it is, and their are to many agents compared to the number of transactions. If I had a steady job that I didn't hate this wouldn't be the time to jump into real estate.

Can it be done...yes no matter what the market is. If you are willing to work hard (most likely 7 days a week to start), have contacts already that will buy or sell with you, you have 6-9 months of reserves (living expenses plus advertising costs), and you understand this is a business not a job. You will get paid only if you can convert leads into sales. At that you will pay a lot of money to find out if you can do it.

Hope that helps.

[kensmith]

I have been in contact with 2 different brokers who both told me when i asked how do you get into the business to start off with money wise and there responses were to have about 3-6 months salary saved to support yourself, does that sound right to you?

This is from my other post "have contacts already that will buy or sell with you, you have 6-9 months of reserves (living expenses plus advertising costs)," Plus you need to add all of the start up costs. 3-6 months isn't enough as 3 months of salary would mean you have to write a contract your first month as you have at least 30 days for a closing on average plus you will have spent money on start up costs and advertising. From there you will have no reserve left.

That's why I say 6-9 months of living expenses PLUS advertising and startup costs. This will make sure you have some money in the bank at all times. Even if you happen to close one deal quick you still need a reserve as it could take months before your next one.

I do well above average amount of business and there are months I have no closings. Even at this stage I keep 6 full months of expenses (living and business) in the bank as a reserve to make sure that if things start to really slow I won't have any issues.

[Muscatine Agent]

I thought all you guys in CA were makin the BIG Bucks!
Our midwest area agent income from commission is around $15,000.
I love this business, but I always tell friends considering trying real estate, it's more hours, and less $ than you think.

[HomeSurfer]

Real estate is a profession where some folks make really big bucks and others don't. Some don't go into the office much (home or regular office), some don't put in much effort prospecting, some just don't have any personality, some don't make the effort to learn the art of selling.

Sales. It is a skill. It is an art. And it is work.

Some become successful at it and will never work a regular job again. Some fail. Some just get along. Some work it as a hobby while their spouse makes the real money in the household.

And some just go into the office to socialize and tell jokes.

Others goof off in other ways until they are almost out of money, then get their asssss in gear, make a huge amount of money, then start goofing off again. It isn't easy, but if you're good at it, you never go back to a regular job.

[teamgreene]

You should make it your personal challenge to be more successful than the next guy. If he's making 30 grand, you should want to make 60.

If you're not competitive on a basic level, it's probably not the job for you.

[MileHighAgent.com]

Like all businesses, you get out what you put in. Set a goal, work, work and a lot more work with your goal in mind and you will achieve your goal. If you think you'll make $30k you will. I would recommend having a goal closer to making $30k a month by your 6th month in the business. I've been more successful setting a goal for a certain number of closings per month - for example, my goal right now is to have 4 closings a month. I'm trending about 2-6 closings a month - works well! Don't be discouraged by what other people say...set a goal and achieve it!

[teamgreene]

Dawn

I'd be interested in learning what types of marketing you persue to reach those kinds of numbers. We have a similar goal set for ourselves, and we feel as though we can achieve it. But, there's only two ways to learn: mistakes and advice. We'd rather take good advice and get it right the first time.

[MileHighAgent.com]

TeamGreene-

Ah! Please share your marketing ideas with me as well.

I work with about 4 lenders - I refer them business and they refer business to me. If I am not getting referrals from a lender - I do not send referrals.

I refer business to Insurance Agents and ask that they do the same for me.

I advertise listings on Realtor.com - last year I picked up 3 clients directly from this method of advertising and after thier referrals - about 3 others

I always, from first meeting a client tell a client that thier referrals are greatly appreciated (I know a lot of clients begin asking for referrals at closing - but in my opinion - that is far too late)

I have a leads group of other small business owners in my community - hardwood floors, hair stylist, window washer, roofer, plumber, etc. - we agree to refer business to one another.

I just recently organized a 4th of July parade in my neighborhood - I invited 200 of my neighbors, had a firetruck, prizes for kids (best dressed, best decorated etc. - it was a HIT - I met over 150 of my neighbors and thier friends.

I had many neighbors come up to me and introduce themselves thanking me for the montly newsletters I send - a GREAT way to meet those people I market to every month

[Thesa]

We often refer to Central Oregon as poverty with a view... however after reading this post I am thinking we are sitting pretty darn good. I just started my second year as a broker with a great local company and if one of our brokers were making only $30,000 we would be very worried about their ability.

I know that we are in a boom town - regardless - it is not that difficult to close 24 to 36 transactions a year... it does take a lot of hard and consistant work - but isnt that what we love?

[Muscatine Agent]

Thanks Thesa
Would large of a population do you serve? What is your comm. % range?
What will an agent make at 30 transactions per year?

[Thesa]

The area I live in is very rural - the largest city is under 100k people. The area is very different than what most are use to. It is not unusual for you to put 100 miles on your car to show 10 homes. My two largest areas that the most of my commissions come from is a resort area i.e. Sunriver south to La Pine.

The average Sunriver home is about $500k and commissions vary from 2.5 per side (most are split equally) to 3%

In the areas outside of Sunriver the average home sells for about $250k and the commission is the same 2.5 to 3

I have currently brought in 125k in commissions for 2006 through June 30. The company splits here range from 60/40 to 95/5 - most 60/40 offices pay for a lot more than those that pay 95%.

[klinckphilip]

I would consider most agetns part time, but that isn't because they have another job. They just don't put 40 hours into their businesses. $30k actually sounds about correct as most new agents make uder $20k a year and there are more of them than agents that make real money. The worst part is that number is gross, before taxes and other expenses...why would you bother?

I think that most are part-time like he said but if you put that 40 in you will do rather well. the ones who are great and make upwards of 250,000 there third year are imbedded in the real estate pulse they work 80 or more hours a week and enjoy it. they make that 250,000 and then they have to change there game plan leverage there time because there is not enough time in the day for them to work with all the buyers they have calling them. Then its all about quality not quantity. those people also are great to get in with they throw 75,000 to 200,000 buyers your way,... for a percentage.