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Winsor_Pilates · 05-13-2014, 12:14 PM

That article is ridiculous but helps to understand why public perception of Realtor income is so skewed. 2 easy deals to make $50,000???

I've been commissioned on hundreds of sales in big expensive Vancouver, am in the top 5-10% in #of transactions, and don't have a single $25,000 commission to my name.
The thought that some receptionist could just walk into the business and start getting the type of property listings with $25K commissions is absurd.

Here's the 2013 sales per agent in Vancouver to give some perspective. It averages out to around 6 deals a year.

I actually track my average commission and it's about $7500 per deal.
At 6 deals a year, that's $45,000 a year your average agent can expect to make before paying any expenses, office fees, desk rental etc.
That's also assuming they keep/charge full commission on each transaction (highly unlikely).

Conservatively knock off $15,000 in brokerage fees/splits and you're making a whopping $30,000 a year before tax.

It's a great profession and you do have the potential to make a very large income, but the pool of agents at the top is not easy to get to, and it's their commissions, cars, lifestyles that everyone sees.

05-13-2014, 12:14 PM	#68
Winsor_Pilates Franchise Player Join Date: Mar 2005 Location: Van City - Main St. Exp:	That article is ridiculous but helps to understand why public perception of Realtor income is so skewed. 2 easy deals to make $50,000??? I've been commissioned on hundreds of sales in big expensive Vancouver, am in the top 5-10% in #of transactions, and don't have a single $25,000 commission to my name. The thought that some receptionist could just walk into the business and start getting the type of property listings with $25K commissions is absurd. Here's the 2013 sales per agent in Vancouver to give some perspective. It averages out to around 6 deals a year. I actually track my average commission and it's about $7500 per deal. At 6 deals a year, that's $45,000 a year your average agent can expect to make before paying any expenses, office fees, desk rental etc. That's also assuming they keep/charge full commission on each transaction (highly unlikely). Conservatively knock off $15,000 in brokerage fees/splits and you're making a whopping $30,000 a year before tax. It's a great profession and you do have the potential to make a very large income, but the pool of agents at the top is not easy to get to, and it's their commissions, cars, lifestyles that everyone sees.