Consider..... Considering the downturn in the real estate business, in order to earn a decent income, you must work harder than ever before. The average real estate professional is producing one transaction per quarter and working approximately 50 hours per week. If you are part of a franchise organization, you will also be expected to pay monthly franchise fees, errors and omissions insurance and annual fees. In addition, as an associate working for a traditional real estate company you will be required to join various membership organizations, further reducing your gross income.
There is an alternative option available to you that will limit the time and work required to work with buyers and sellers that will produce a higher net income to you. By joining our network of referral agents, you can work part-time generating leads to our membership of professional agents that will generate a higher net profit to you without being involved in the real estate transaction.
When you are ready to become a full-time agent, we can refer you to one of our member brokerages that will offer you a special program that will meet your personal financial budget.
Let's Do the Math!
A typical sale of an average home in Maricopa County is $280,000 which will normally generate a gross commission check of about $8,400.00. The table below illustrates the typical erosion of the commission payment when all factors, fees and expenses are taken into consideration:
|
2 Sales/year |
4 Sales/year |
10 Sales/year |
|
|
|
|
Gross Commissions you earned: |
$16,800 |
$33,600 |
$84,000 |
|
|
|
|
Office expenses: |
|
|
|
1. Annual office dues: |
360 |
360 |
360 |
2. Monthly dues ($75/month): |
900 |
900 |
900 |
3. Office commission split (30%): |
5,040 |
10,080 |
25,200 |
4. E & O Insurance ($50/sale): |
100 |
200 |
500 |
|
|
|
|
Realtor Expenses: |
|
|
|
1. Annual Board Dues (SEVRAR): |
375 |
375 |
375 |
2. Annual ARMLS Dues: |
284 |
284 |
284 |
3. MLS Fees: |
264 |
264 |
264 |
4. Lock Box Replacement (2/year): |
170 |
170 |
170 |
5. Signage: |
80 |
160 |
800 |
6. Marketing of Listings: |
200 |
400 |
2,000 |
7. Tank of Gas per Sale ($60/tank): |
120 |
240 |
600 |
|
------------ |
------------ |
------------ |
Total Expenses: |
$7,893 |
$13,280 |
$21,453 |
|
|
|
|
Net Commissions you Keep: |
$8,907 |
$20,320 |
$52,547 |
The above table clearly illustrates that when you look at all of the fees and expenses involved in associating with a typical real estate company, you only get to keep about 50 - 60% of the commissions you have earned.
Agent2Agent Network
225 E Germann Rd
Gilbert, AZ 85297
480-899-9010
