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Originally Posted by The largest brokerage firm in my area has hundreds of realtors working under his name that [B
each realtor makes HUNDREDS OF[/b] THOUSANDS OF DOLLARS for him.
According to the Department of Labor, the average real estate agent grosses about $35,679. The average real estate agent is on a 50-50 split with their sponsoring broker, especially the big box franchised brokers that engage the majority of agents.
About 50% of agents do not make anything their first year and quit.
The source of your information that each broker makes $hundreds of thousands, off each agent, is incorrect.
Two proofs needed here to avoid falling into the Angel category:
1. Agents make 6 figures a year.
2. If agents were employees, they would not make 6 figures a year.
The agents even in my very costly neck of the woods that make 6 figs on deals alone are very small in number. Average annual income for full time agents in my neck of the woods is under $30K.
A handful of agents do earn deep into the sixes, and in terrific years made over $1M in commissions, out of that they had a big pile of expenses, and more than few bad debts, mostly from employees...
Brokers that own their own shop, in theory, are also building equity in their firm, though knowing how ugly the sale / transfer of offices has been, and what a "bad deal" certain large national firms have gotten in acquiring local firms, I think this is debatable.
I have a unique perspective on what the requirement and compensation of full time employees in non-real estate firms are expected to know, respond to and deliver to their employers. My take is that if real estate agents were held to the same standards as other professional service employees the average compensation would rise, the total number of such employees would fall, there would be massive loss of flexibility, and the top earners would get even more money. It would wipe out the low earners, and would NOT reduce costs to consumers...
Much of what she has said is incorrect or inflamatory. She comes to a real estate site and wants to complain about the process that she failed at doing and has also failed at selling her own place.
Are you hiring someone for results based on their efforts, undertaken on their own schedule, with essentially no supervision and only general timeframes to finalize projects, using their own methods, tools, and intellectual ability to reach a result within generally specified parameters? Are they able to use their own techniques, abilities, and methods as they see fit and not according to your direction in order to reach that result? Then you can contract rather than employ. If you're setting the schedule, requiring specific hours of service, setting parameters for production, defining the methods, tools, and process...then they are your employees.
Last edited by windtimber; 05-01-2009 at 09:35 AM..
Reason: Typo.
Are you hiring someone for results based on their efforts, undertaken on their own schedule, with essentially no supervision and only general timeframes to finalize projects, using their own methods, tools, and intellectual ability to reach a result within generally specified parameters? Are they able to use their own techniques, abilities, and methods as they see fit and not according to your direction in order to reach that result? Then you can contract rather than employ. If you're setting the schedule, requiring specific hours of service, setting parameters for production, defining the methods, tools, and process...then they are your employees.
Much of what she has said is incorrect or inflamatory. She comes to a real estate site and wants to complain about the process that she failed at doing and has also failed at selling her own place.
Certainly comes off bitter.
I'm not sure if you're talking to me or you're talking to someone else.
If you're talking to me, I came to a real estate site b/c I'm an FSBO. And I'm not complaining about any "process." And I haven't failed at anything. I've actually been quite successful as a real estate investor for 8 years.
I have an offer on a house I own that isn't even for sale. Must be something to buying a great piece of property if someone is knocking on my door in this market to buy something that isn't even for sale.
I have a high-end condo for sale and it's listed at 75k below my competition in the same building. NOTHING in this price range in my building has sold. Fewer buyers for million dollar properties so they take longer. But if it were me and I just didn't know how to do this "process," then wouldn't the others who are listed by REALTORS have sold? They have not.
I am not bitter about real estate agents at all. And on several threads I've recommended people use real estate agents. I have used real estate agents on several transactions when I'm either out of state or other complications have made it reasonable to do so. I got a license because I don't like to pay people for something I can do myself. It's not rocket science, or I wouldn't have been so successful at it!!
According to the Department of Labor, the average real estate agent grosses about $35,679. The average real estate agent is on a 50-50 split with their sponsoring broker, especially the big box franchised brokers that engage the majority of agents.
About 50% of agents do not make anything their first year and quit.
The source of your information that each broker makes $hundreds of thousands, off each agent, is incorrect.
You are incorrect, madam. I never said that EACH broker makes hundreds of thousands of dollars a year. What I said was "If agents were employees, they would not make hundreds of thousands of dollars a year." That morped into (erroneously) that independent contractor agents makes six figures. I meant that if an employer had to pay you as an employee, he would not pay you (the average real estate agent) six figures. The job criteria doesn't warrant it. You don't need a college degree to do it (some have a degree but the industry doesn't require it). Few professions that do not require a degree start at six figures. Some do, most don't.
I'm not sure if you're talking to me or you're talking to someone else.
If you're talking to me, I came to a real estate site b/c I'm an FSBO. And I'm not complaining about any "process." And I haven't failed at anything. I've actually been quite successful as a real estate investor for 8 years.
I have an offer on a house I own that isn't even for sale. Must be something to buying a great piece of property if someone is knocking on my door in this market to buy something that isn't even for sale.
I have a high-end condo for sale and it's listed at 75k below my competition in the same building. NOTHING in this price range in my building has sold. Fewer buyers for million dollar properties so they take longer. But if it were me and I just didn't know how to do this "process," then wouldn't the others who are listed by REALTORS have sold? They have not.
I am not bitter about real estate agents at all. And on several threads I've recommended people use real estate agents. I have used real estate agents on several transactions when I'm either out of state or other complications have made it reasonable to do so. I got a license because I don't like to pay people for something I can do myself. It's not rocket science, or I wouldn't have been so successful at it!!
Quote:
Originally Posted by MsFancyPants
To be truthful, Mike, if a post is longer than two or three sentences, I usually don't read it. Sorry.
Are you kidding me? Are you misdirecting the message in this tread on purpose?
The largest brokerage firm in my area has hundreds of realtors working under his name that each realtor makes HUNDREDS OF THOUSANDS OF DOLLARS for him. He can hire hundreds more realtors to work under his name, they work for him and only him. They can't work for him and another reatlor at the same time. This broker DOESN'T HAVE TO PAY WORKER'S COMPENSATION ON ANY OF THESE HUNDREDS OF REALTORS!!!! HE DOESN'T HAVE TO PAY THEM HEALTH INSURANCE, HE DOESN'T HAVE TO PAY THEM ANY BENEFITS AT ALL. HE DOESN'T HAVE TO KEEP TRACK OF TAXES OWED TO THE IRS FOR THEM. HE DOESN'T HAVE TO CONTRIBUTE TO THEIR 401IK.
The flip side of the coin is the largest restaurant in my area has hundreds of people working for him. He has to pay worker's compensation on each one of them. he has to have taxes deducted for each worker's check. he has to carry health insurance and 401k's and his insurance is extremely high because of the hi risk factor of someone getting hurt.
Are you getting this? Or do you just not want to admit you have such an edge on the rest of us business owners?
Quote:
Originally Posted by middle-aged mom
According to the Department of Labor, the average real estate agent grosses about $35,679. The average real estate agent is on a 50-50 split with their sponsoring broker, especially the big box franchised brokers that engage the majority of agents.
About 50% of agents do not make anything their first year and quit.
The source of your information that each broker makes $hundreds of thousands, off each agent, is incorrect.
Quote:
Originally Posted by MsFancyPants
You are incorrect, madam. I never said that EACH broker makes hundreds of thousands of dollars a year. What I said was "If agents were employees, they would not make hundreds of thousands of dollars a year." That morped into (erroneously) that independent contractor agents makes six figures. I meant that if an employer had to pay you as an employee, he would not pay you (the average real estate agent) six figures. The job criteria doesn't warrant it. You don't need a college degree to do it (some have a degree but the industry doesn't require it). Few professions that do not require a degree start at six figures. Some do, most don't.
Tryin' to be brief here...
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If I follow what you are thinking...
