Photo by Olu Eletu on Unsplash

Real estate agents can make a great living if they work hard and work smart. 

The average salary of a realtor does not seem very high when you look at employment statistics, but those numbers can be very deceiving.  These statistics take into account many part-time agents and don’t account for the fact that a lot of agents are not able to motivate themselves without a boss. If you want to be one of the agents who makes a significant income, you will have to work for the right broker. There are a lot of factors that go into what makes a “great broker” including their commission split, desk fees, transaction fees and whether they provide a training program, lead generation sources, and teach you the best ways to make money in your market.

Working as a real estate agent is not a job where you get paid hourly for the work you do. You are self-employed and must sell houses to make money. Real estate is a commission based business.  The Real Estate Broker does not make any money unless you sell houses as well. How the broker makes money is by taking a percentage of the commissions generated by its agents. The amount paid by agents to the broker varies widely based on the training, the office, the broker, and the local market.

The rates that brokers charge their agents can range as high as 50 percent or more of the commissions the agent earns plus monthly fees.  There is often a huge difference in what brokers charge their real estate agents and some brokers have different programs in their office depending on the experience level and productivity of the agent.

To demonstrate the realtor’s earnings on the fictional $100,000 sale of a house, the agent might earn a $3,000 commission (all commissions are negotiable). Here is what the agent may earn after paying their broker in 50/50 commission split scenario:

Current Commission
Sale Price: $100,000
Broker Commission: 3%
Agent Commission Split: 50%
Transaction Fee: -$300
Monthly Desk Fee: -$300
Current Paycheck: $900

Joseph James Commission
Sale Price: $100,000
Broker Commission: 3%
Agent Commission Split: 95%
Transaction Fee: -$299
Monthly tech/admin Fee: -$99
New Paycheck: $2,452

Compare paychecks

Use our paycheck calculator to see how much money you would have made on your previous transactions if you were a Joseph James agent.

At Joseph James, agents are taught how to find their own clients and are given tools to generate leads that convert into sales. Joseph James is selective and hires experienced agents that are driven to succeed.  Do you think that you have what it takes to be an agent with Joseph James?  Contact us using the form below to pursue your new career with Joseph James today.

95% Commission

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