How Much $ Do RE Agents Make Per Hour? And What Is Their Overhead? (commissions, Realtor)

[riggy_house]

In another thread discussing commissions and percentages, I recently had an agent imply to me that their licensing fees and overhead costs were high enough to justify charging more than common labor jobs, like digging ditches for instance.

And since I'm considering becoming an agent myself, I'd like to know how much I should charge per hour for my skills and services.

As a reference, average auto mechanics will charge between $40-$60/hr.
Electricians are about the same.
Some plumbers may make a $100/hr or more these days.
Ditch diggers make about 13.33/hr
Many musicians will play for beer.

So, How much or How little would you work for, and what costs do you incur in order to do so?

Thanks in advance!

[jackmichigan]

Originally Posted by riggy_house

And since I'm considering becoming an agent myself, I'd like to know how much I should charge per hour for my skills and services.

Charge what you feel is reasonable--not what you think others would charge. Good luck finding many people who will pay you by the hour.

[BoBromhal]

to answer:

ZERO per hour.

Overhead varies wildly, but it always is due.

in case anyone else wants to get involved in this complete troll thread, they should know which other topic you're referring to ...

Would you work for 0.3% commission?

and now maybe I DO worry about your comprehension skills, when you claim this:

I recently had an agent imply to me that their licensing fees and overhead costs were high enough to justify charging more than common labor jobs, like digging ditches for instance.

now, you're combining responses from 2 agents, but rearranging the meaning of those responses and assigning the statement to 1. And you're a really awful inferrer. I mean, really awful.

One said:

riggy: I wonder how many RE agents these days are willing to work 200-300 hours hard labor to earn a paycheck like that?
Apples and oranges. What was your business overhead to earn that income? How much in licensing fees did you pay to have the right to earn income?

And I said:

I did my manual labor that taught/reminded me to gain an education and non-manual labor skills to achieve and earn more. But as they say, the world needs ditch diggers too.

if you've never heard the saying "the world needs ditch diggers too", then you've never seen Caddyshack.

[BoBromhal]

we've also been over the "charge people an hourly/per task rate upfront" angle numerous times since you joined the forum.

[2bindenver]

How much can we pay you to not become licensed?

[Rakin]

I charge $800 an hour and only work 2 hours a week. Used to work 4 hours a week but I'm cutting back since I'm wearing myself out.

It's a great life.

[2bindenver]

Which two?

It was one of those things I heard over and over again.

"I only work half days."

"Really?"

"Sure. Sometimes the first half, and sometimes the second half of the day."

[MikeJaquish]

I eat Bitcoin and poop houses.
It's a gift.

Or, was that "Eat houses and poop Bitcoin?"

I guess I need some CE classes.

[Silverfall]

Originally Posted by riggy_house

In another thread discussing commissions and percentages, I recently had an agent imply to me that their licensing fees and overhead costs were high enough to justify charging more than common labor jobs, like digging ditches for instance.

And since I'm considering becoming an agent myself, I'd like to know how much I should charge per hour for my skills and services.

As a reference, average auto mechanics will charge between $40-$60/hr.
Electricians are about the same.
Some plumbers may make a $100/hr or more these days.
Ditch diggers make about 13.33/hr
Many musicians will play for beer.

So, How much or How little would you work for, and what costs do you incur in order to do so?

Thanks in advance!

Okay. You don't understand how the real estate industry works...

1) When you first get licensed you will "hang" your license with a principal/managing broker to supervise you. They determine what the brokerage charges for services.

2) There is no way that you will make enough money in hourly rates to make a decent salary. I say this as someone that offers hourly rates in addition to traditional commissions.

3) When you are a real estate agent you are a small business owner so how much or little you would charge would depend on whether or not you like profit.

4) As a rookie agent, you have no skills that are worth very much so you won't get people to pay you well.

5) The costs that you will have as part of your overhead...


MLS fees. Out here agents pay $45 a month for it. It will vary across the country.
REALTOR association fees-my MLS is independent but most MLS's aren't. Out here the REALTOR fees are about $750 a year.
E&O insurance. Out here many brokerages charge about $40 a month for that.
Desk Fees-They are about $150 a month out here just for the desk.
Franchise fees run around 6%. This is a fee you pay off the top of any earnings to a brokerage if you belong to a franchise. It varies depending on the franchise.
Your split. This is the fee that the brokerage takes in order to let you hang your license with them. They can vary from $300 per transaction to 50% of any earnings.
Docusign or other signing program $20 a month
Zip Forms or other forms program $100 a month
Business insurance for your car $1000 a year


Business cards
Business signs
Business letterhead
Flyers
Open House materials
Marketing (websites, FB marketing, lists for cold calling, etc)
Computer (if you don't have one)
Supplies (pens, paper, stamps, etc)
Professional photographer for listings

Then you have to pay taxes on any net profits before you have any take home pay.

So how much do you want to make a year.

[riggy_house]

Of course I've seen Caddyshack. A colleague and I were just discussing earlier today how it was one of the top 5 golf comedies of all time.

Come to think of it, if you trimmed your mullet and dyed your hair white, you'd actually make a decent stand-in for Judge Smails