Real Estate and Beyond Blog: SHOW ME THE MONEY! WHERE ARE YOU ON THE SCALE?

I want to become a realtor

Thanks for sharing the information

Great input-Make the call

I am a broker I need to now go figure out where I am going wrong !!! I am hoping your chart is local  Ha

great charlie

Makes me feel very good as a matter fact. . I'm the Broker Master!

The Man Fernando-Can I come work udner you?

Why did I become a broker?  Independence and money. 

However, $72,000 would be considered very low in my area.  That's a GS12 beginning level pay. 

You're showing a graph with median incomes.  Yet, the question is for "average" incomes.  Big difference. 

Interesting numbers - I'll have to research Canadian stats!

You can do a lot better than these averages in Maryland. Look at the list of RE/MAX agents that have received the Lifetime Achievement Award. They have earned over $3,000,000 in commission income.

Follow me on Twitter: http://twitter.com/roykelley

I think that number in parenthesis after each each category is the number of individuals that makes up that median.   The original site says that the date is from 52 people.  With such a small sample size, the numbers are pretty meaningless.

Agents may complain about the broker making money--but he/she is taking the risk.

If they want to make more money, go out on your own and try it.

THe broker puts up the money to start a business, invests in the company, and sticks his neck out to open a new office.

The broker's neck is on the line if one of his agents screws up.

And if there isn't enough money to make payroll during Jan/Feb or in a sales slump, whose pocket does it come out of?

More risk, more reward.

The  numbers look very low for my area as well. However, I feel like a broker is running a business while an agent is working with buyers and sellers. I prefer being an agent.

PS--I am a broker.

And there are closings that take place where 100% of my commission goes into the operating account to make the monthly bills.

And then there are closings... that I take a nice chunk home!

Interesting figures - don't know that I would want that responsibility of a broker.  Again, where the numbers come from, how they are used and how many are used in statistics makes all the difference.

Hi Harry:

I would say that these median numbers are a bit higher than the median numbers in my area, but I don't know the exact numbers...

But I'm proud to say that I'm off the chart.

Harry: I saw this recently. I imagine numbers are down substantially the last few years for most people. We live in a feast-or-famine business. I'm hopefull we'll all be feasting again soon. Take care.

@ Toula ! Good for you :o)

THe ratios may be similar between how much more a broker makes, but the actual numbers differ tremendously from area to area.

Up here in NJ - next to NYC - those numbers should be more than double ... but cost of living is higher too.

The chart doesn't give much information, like the length of time the Realtor or Broker has been building the business, and that would surely improve as time goes on...the numbers seem very low to me.

Quite interesting scale, the property manager here in Manhattan New York makes a little bit more than that... agents wise, I think that may be able right for 80% of them, even though we do have higher price point. Brokers/managers, depending on what firm, they most likely make double if not more.

Harry...

Are these numbers gross or net? And the median is far different from the average. In my area, the AVERAGE NET income for an agent would be under $10,000. I would probably dispute the numbers presented, I don't think that the medians are nearly this high for 2008 nor will they be in 2009.

I like the numbers.  Reminds me of a joke about numbers.  I guess I will have to post it.

For a broker to be making a profit in this market, he/she is doing well.  For active agents or brokers who truly dedicate themselves as this is their business, the average number seems very, very low.  For at least 10 years, I have told agents if you are not making $100k by your 3rd year, get out as the stress level is not worth that low of an income. 

I have heard the average full time Realtor earns about 42,000 a year. Not all that much for the work, time and worries.

Whenever I read about the national averages for Realtors I'm always skeptical.  That's because there are THOUSANDS of agents out there who are part time that do one or two deals a year (if any) thereby dragging down the average.  Even in my first full year in the business I earned well over that national average published here.  I think real estate can be a very lucrative and rewarding business, IF you work it. Many don't.  Thank you for the information and best of luck.

Harry, Whatever the Broker earns, he sure does 'earn' it. They are really the one with their head on the chopping block.

Interesting information. I'd be interested in finding localized numbers.

I was curious about our local numbers so I checked it out here:  http://www.payscale.com/wizards/choose.asp 

It also showed very low numbers which made me feel I was much better than average :0)

I owned home electronic stores for 16 years before my 20 year real estate career. I know what ownership is like, and I promised myself never to own a brokerage. I appreciate their work so much because as a rule, they don't make minimum wage, and they handle prima donnas on a daily basis. I can tell you I wouldn't take that kind of stress for double that average. I will state that brokers are courageous and dedicated people and I appreciate all of them. 

Yeah, and is that before or after taxes? 

I am and have been a broker since 2000. Maybe it's the rural small towns area I live in or maybe because it's only me and I have no agents working under me, but those figures sound high. At least higher than I've ever earned in the last 9 years. I do work full time at this.

Here Property Managers make more than Brokers, about 4 times more and these numbers are low for our area as well.

I am kind of medium priced, I guess, on your chart - but it is very cheap to live here - my average sales price of homes I have sold here is about 190K.

Different areas and markets will reflect a Realtors income sometimes dramatically.

Patricia aulson/Portsmouth NH Real Estate

Evening Harry,  The brokers do pretty well but certainly put up with a lot.   That said, if you think they have it pretty good you can sit for the exam !

I've never looked. OK I'm lying :) I'm a Broker and I look all the time. I am fortunate that I've always worked from home and have never had to pay the expenses of owning/renting an office. My overhead is very low. I  don't know if I would do this job for less than 6 figures. In this market though with prices being as low as $50,000 for a house I have to be pretty darn creative to hit my mark. Luckily I have several income streams.

Good thing we just picked up property management as part of our services :) LOL. Brian is the broker and I am the agent so lets add that all up....Does that account for all the expenses we pay running the business, probably not. ~Rita

I guess it is good to be an above average real estate agent.

Very interesting.. Now are these before or after taxes ? This would be interesting as well.

I feel inadequate now... Gee, thanks.  I guess it is time for more internal examination. 

Let's not forget that in this chart. we are throwing part-time, zero-time and full-time agents into the same pot ... My household would not be afloat with only the average realtor commission income, so I have to do better than that :)

Realtors make less than teachers and everyone says that teachers are underpaid!

Show Me The Money!

Well, in a resort area with over 700 Realtors and a two year's supply of inventory, 4-6 sales a month,Realtor and Broker properties being foreclosed on, offices closing and merging we're all trying to hang in.  If you have a two Realtor household, though, times are tough! Maybe you should send the HOW TO list so we can survive!   Babs 

I am SO GRATEFUL That We Are NOT On This Scale!  Our Families would be starving.  As uncomfortable as the downward spirals are, we've always survived these downturns....Fortunately in the last 100 days it started to get comfortable again for our market place,  Thank Goodness real estate is local!  When this downhill slide started we felt it in 11-2005.  Our Mortgage Brokers felt in 3-2005.  Each Market Sector will feel the impact differently.  NAR Economist more than 2 years ago predicted the recovery for 1st quarter 2009 and then then they adjusted it to the second quarter of 2009.  Nationally I am hearing  that outsde of real estate you will see a difference the 4th quarter of 2009 or first quarter 2010.  I am grateful we are seeing signs of a recovery already, my prayers are for those seeking employment that they may see relief too and soon.

LEt's just say this chart makes me glad that I work in Los Angeles! What a difference geography makes in terms of Realtor income!

Thanks. I feel like I stepped on the scale and I'm ten pounds lighter. I'm glad to say I'm above average :-)

Are those numbers for the whole year, or just one deal?  

I think I'll be the CEO right before Google buys this company! :-)

These stats are based on a percentage of the average sales price of a home and the average amount of homes a realtor sells in a year. Well, if your average sales price is $600K, as it is in some areas, no problem. Easy to make. But, if your average sales price is $200K you have to sell 3 times as many homes to make the same amount. Really not a good way to determine if you measure up.

Demographics would make a huge difference as to how much a Realtor makes.

www.HomesByVanna.com

If agents in our area are looking for a second job or leaving real estate, they are ot making these money.

Harry. I earn more than my Broker. However I am still thinking of being a Broker anyways. Can anyone talk me out of it?

It looks like there are good reasons I like being my own broker.

It looks like there are good reasons I like being my own broker.

Well I am above average but still broke.  I would like to see a better break down.  I am convinced Real Estate is an 80/20 type situation.  Also how do the part timers effect the break down?

I am new so I don't know where i fall yet, but I am going to strive to be above the average. I have 3 closings coming up in June and July. 

I got my license in Feb. or 09.  Had my first closing last week.  I'm already in the top 50-60%.  That's pretty amazing.  I think RE is a 90/10 rule more than the 80/20.

Off the charts....I'd say...unfortunately not in the direction that I would like to be according to yours...as a Realtor Broker....but the area I live in is well worth the below average figures...thanks for depressing me though...

That is an incomplete chart, finish it up so we can see the Asset Mgrs salary etc.  Is the point of this to make already depressed agents commit hairy-carey?  Even at the brokers salary it's not worth the headaches, added responsibility and 14 hr days.

Someone out there is hold on to some of my salary.

Thanks for sharing another excellent post.