Accountant · TX · Member since 2019 · 17 posts · 3 votes
Why do some realititors use sales volume?
Example one that I know said they sold 10 million in volume for the year. With the average house being 250k I’m assuming it would go like this:
10,000,000$/250000$= 40 homes as either the buyers or sellers agent in the transactions.
40 homes/12(months in a year)=3 houses monthly.
Commission can be dropped as low as 5% under the law meaning the buyers agent and sellers agent would get 2.5% on the sales and that’s not even factoring in paying out the broker who manages them. My friends dad and his business partner both manage to make over 300k annually but they are commercial brokers and not Realitors which makes a lot of since because commercial real estate can go for millions for the businesses that buy them.
Did I do the math right right? If that’s the case I’m going to get my license.
Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
6y
Yes, selling real estate can be very profitable. There are also many people doing the same thing, so you would need to find a niche or multiple niches where you have a competitive advantage. Best of luck.
Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
6y
@Andre P.
If I understand what you want to know, the point of marketing I sales volume is both because larger numbers are “sexier” and it’s the best/only public number to use. Using the number of transactions is “boring.” Telling people how much you make is kinda weird... besides, what would you report? Usually, the split you have with your broker is private (similar to salaries).
So you could use 2.5% commission ona split for your calcs, but that is gross commission income. How much do you have to split with your broker? What is the brokerage’s fee structure? How much are you paying for advertising?
All that being said, yes, real estate sales can be a lucrative business if you can get the clients.