How Much $ Do RE Agents Make Per Hour? And What Is Their Overhead?
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
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.
Wow, thank you for taking the time to give such a thoughtful and informative reply. It sounds like you've had some tough times in the past, at least early on, and I appreciate any and all tips which might help steer me clear of some of the industry's pitfalls.
As far as rookie skills go however, I'm assuming you must not follow basketball or football much. Maybe the names Wilt Chamberlain and Michael Jordan might ring a bell? They're both living proof that rookies can excel right off the bat.
Perhaps you've never heard of Ryan Leaf either; proof that rookies can get paid top dollar, regardless of their skills or achievements.
P.S. those overheads that you are stating are actually looking surprisingly weak in my eyes. Most plumbers, electricians, carpenters etc. probably incur at least those fees, if not 2-3 times higher overhead, if not much more! This sure makes getting a license seem all the more enticing to me
Last edited by riggy_house; 11-21-2017 at 09:02 PM..
Perhaps you've never heard of Ryan Leaf either; proof that rookies can get paid top dollar, regardless of their skills or achievements.
Aside from your incredibly condescending post you're wrong about Leaf. He had skills plus many achievements in college that he was paid for. Unfortunately due to drugs and an inability to cope with pressure his college success simply never carried over into the NFL.
Aside from your incredibly condescending post you're wrong about Leaf. He had skills plus many achievements in college that he was paid for. Unfortunately due to drugs and an inability to cope with pressure his college success simply never carried over into the NFL.
Dang I never meant any such disrespect. I was just referencing the fact that big league pay doesn't always equal big league stats.
I certainly never meant for the conversation to delve into an individual's personal affairs, as you have.
Talking about someone's substance use and inability to "cope" sounds like you may reading too much into TMZ articles and such.
Just because someone doesn't throw touchdowns in the NFL shouldn't mean we should go trying to correlate their lack of success with substances they choose to consume.
If you never make the top 10 percentile when it comes to sales in your profession, should we assume it was due to some beer you drank or crack you smoked when you were a kid?
Geesh. How did we go from talking sports stats to Dr. Phil?
Last edited by riggy_house; 11-21-2017 at 11:03 PM..
Wow, thank you for taking the time to give such a thoughtful and informative reply. It sounds like you've had some tough times in the past, at least early on, and I appreciate any and all tips which might help steer me clear of some of the industry's pitfalls.
As far as rookie skills go however, I'm assuming you must not follow basketball or football much. Maybe the names Wilt Chamberlain and Michael Jordan might ring a bell? They're both living proof that rookies can excel right off the bat.
Perhaps you've never heard of Ryan Leaf either; proof that rookies can get paid top dollar, regardless of their skills or achievements.
P.S. those overheads that you are stating are actually looking surprisingly weak in my eyes. Most plumbers, electricians, carpenters etc. probably incur at least those fees, if not 2-3 times higher overhead, if not much more! This sure makes getting a license seem all the more enticing to me
I had a great rookie year, but I am not the norm. Wilt and MJ had skills they learned in college before going pro. It just isn't the same as walking into the real estate industry. It is really common for people to think making money in real estate is so easy, which is why 80% of agents don't make it past their first year.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I was just referencing the fact that big league pay doesn't always equal big league stats. 
