Realtor Commissions

[RR 314]

Sounds like an infomercial.

If she makes 400-800k working 10 hours per week doing something she enjoys what the heck does she make at her real job?

I would guess less than at real estate. However, the equity play at her day job has a huge upside. Very high in a privately (closely) held corporation and she will make retirement money (as in buy your own island for retirement) when there is an event/acquisition.

[hooligan]

The only way to make a lot of money as a realtor is to work, work, work.

That includes weekends. All of them.

absolutely not true. My best friends wife is a realtor in LA, she works 3 days a week at best and that may include 1 sat a month. She sells 1-2 7 figure homes a month in the LA beach cities and makes $400k+ a year

Not a bad part time gig. Granted she has a bunch of really rich connections and most of her stuff is referrals but still

[BrianL]

Sounds like an infomercial.

If she makes 400-800k working 10 hours per week doing something she enjoys what the heck does she make at her real job?

I know one of these. Best guess they are born or marry into a certain social circle to be able to do this. You have to run with those type buyers/sellers to be able to do it.

[tigerscowboy]

Absolutely untrue. That is like asserting the only way to make a lot of money as a lawyer is to work, work work. I know lawyers and realtors who screw around on websites all day and make a heck of a living. If you specialize in luxury real estate, for example, you can do well without the requirement to work all the time. Same thing with lawyers, consultants etc. who have fine tuned their practice. I have a friend who has a full time job and assists buyers on a (very) part time basis. SHE HAS NEVER WORKED AS A FULL TIME REALTOR/BROKER. In fact, she has never had an office, or advertised her services--merely works for friends/referrals. She likes staying current on the market and enjoys the poker game. She helped us buy a couple properties and even listed a few, for 1% on her side, and averages 15-25MM in purchase prices (aggregate) for her buyer's per year. She makes $400K-800K a year mostly assisting friends/buyers and estimates she spends ten hours a week doing so in a very small geographical area. She also is routinely shocked about how poor many seller's agents are and how little they do for their commission (in the luxury market). She is genuine and is even more shocked at how little she does for her commission!

If you are dealing with volume and low dollar amounts you certainly need to hustle to scratch out a living. However, there are plenty of people out there enjoying a very nice work/life/leisure balance 3% per transaction.

Would you describe that as the majority or the very small minority in this occupation?

I also know a guy who "sells" cars but never sees, cleans, or talks to a buyer. He makes a great amount of money.

What is your point?

[Sleepy]

I must have stirred up a hornets nest! Thought it was deer season!!

[RR 314]

Would you describe that as the majority or the very small minority in this occupation?

I also know a guy who "sells" cars but never sees, cleans, or talks to a buyer. He makes a great amount of money.

What is your point?

What? You don't get the point? I really shouldn't have to illuminate it for you, but here you go. . .

You stated, definitively, that "The only way to make a lot of money as a realtor is to work, work, work.

That includes weekends. All of them."

I asserted this is absolutely untrue and gave you an example. Your statement is false. Absolutely false. Point taken?

[175gr7.62]

I'll put my two cents in....

It all depends on the market. In some markets you can stick a FSBO sign in the front yard and you can expect offers immediately. In others, you need help. I have been fortunate to live in an area where people are pounding down the doors to buy homes and have only used a realtor once. We were busy at the time and I let my wife talk me into it. Still pizzes me off to this day thinking about it.

As long as the market stays the same here I won't ever use another realtor again. Market changes..my opinion my change.

[tigerscowboy]

[/COLOR]

What? You don't get the point? I really shouldn't have to illuminate it for you, but here you go. . .

You stated, definitively, that "The only way to make a lot of money as a realtor is to work, work, work.

That includes weekends. All of them."

I asserted this is absolutely untrue and gave you an example. Your statement is false. Absolutely false. Point taken?

My "point" is that it is not normal or to be expected in this market place. Is that good enough for you?

[tigerscowboy]

I'll put my two cents in....

It all depends on the market. In some markets you can stick a FSBO sign in the front yard and you can expect offers immediately. In others, you need help. I have been fortunate to live in an area where people are pounding down the doors to buy homes and have only used a realtor once. We were busy at the time and I let my wife talk me into it. Still pizzes me off to this day thinking about it.

As long as the market stays the same here I won't ever use another realtor again. Market changes..my opinion my change.

No argument with this

[Razorback01]

Why don't the whiners just become realtors since it's such easy $$$$ & get their Lic?? It's free, easy to pass, no annual dues, free health ins, Matching 401K & all other sorts of goodies!! Can't believe there aren't more TBH realtor supporting members!!

Hate these ignorant go get the pitchfork realtor threads.

I absolutely agree!

[doghouse]

It is a sellers market right now. It will change and realtors will be like oil field workers in a few years. JMO!

[MIHunter]

.

Some see the value of hiring a Realtor, some don't. Keep in mind that 6% is usually split, 3 and 3. Knock out about 25-30% for taxes, some for various association dues, marketing/advertising, photography, sponsorships, fuel (ranch guys can burn a lot of fuel!), equipment upkeep, a little for retirement, insurance on everything, health insurance, ECT, ECT. It costs a lot to do what we do. It can be a high-risk-high-reward deal for sure. Oh ya, and when we take on a seller or buyer as a client, we do everything in the HOPES of getting paid...it's not guaranteed. How many of y'all are willing to work for someone for months and risk not getting paid a dime, and worse--actually losing $$?

Yes sir, agree 1000%

[MIHunter]

Alright.

300,000 dollar house at 6% = 18,000
Divided by 2 =9000 each
Take the broker out and you may have 4,000 to 4,500 left over for the realtor.

2 houses a month = 8,000 to 9,000 a month.

Seems pretty legit for realtors.

This thread is a good read. I am the fsbo type and know plenty of people like me. I hear these horror stories about houses sitting for months with no action then the awesome realtor gets it done. I aint buying it.

Some Realtors are worth their weight in certain markets.


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Don't forget, taxes, photo's staging, marketing, etc.

[Marco]

Gotta love the realtors coming in a getting so ****** and defensive. No different than people posting question about best truck deals etc.

Thanks to Bobby though who answered in the post in a constructive manner instead of blowing up defensively and also shot me a pm. When we get ready to list I’ll give ya a call

To Sleepy, I didn’t think it was bashing or attacking realtors at all, but as always TBH ruffles feathers!

I'm not a realtor. I'm in the AC business. So I hear the same thing about my trade

[TX CHICKEN]

Realtor Commissions

It would be nice if there was a scale of some sort for how much work was put in. I have sold 2 houses in my life and can assure you no more than 40 hours was put in to sell them and paid about 12k in commissions. I wish I could make 300/hour. I understand this is not how easy it is all the time but the system is flawed.


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