Let’s talk money here. How much can you make as a real estate agent these days? We all know what’s going on with real estate market but the market itself is not the only reason your paycheck is getting smaller. There are several factors which determine the size of your commissions check.
What Affects Your Income
First, let’s agree that your income largely depends on your ability to sell real estate. Therefore your personal drive, time management skills, your capacity to communicate and to generate new leads while creating a solid transaction pipeline are the most important factors to determine the degree of success in real estate.
Second, we should take in consideration outside factors. These are the economy, clients and real estate market conditions. These are also extremely important but it’s better to look at these indicators as contributing factors to your success. Yes, the market is not in our favor, but it is up to us to adapt to the market conditions and make the best of what we have or end up continuously blaming the environment every time we get our commission check.
Third, and this is truly critical. You have to be in a right place to make the best of your career. When market is slow you have to pay close attention to what happens with the money before you get your paycheck, simply put how much of the transaction will end up in your bank account. Let’s take a closer look at how much real estate agents can make with Dynasty RE Online vs. traditional real estate broker.
With Dynasty RE Online you do not have any monthly recurring expenses. Basically, if you had a bad month and there is no income, you don’t have to worry about digging into your personal account to cover the privilege to continue your career as real estate agent.
Real Estate Agent Income depends on Real Estate Broker Policies
Monthly Fees. Traditional broker, on the other hand will require a monthly office fee $100-$300 per month. In addition to that, you will be required to pay a franchise fee in a range of $50-$300 per month. Here is your total of $150-$600 per month of expenses that come before you sell anything.
Commission Splits. If you all working on 50% commission split in addition to all the monthly fees you are giving half of your income to your broker. That means if your gross commissions are $6000, you will give your broker $3000 plus $150 or $600 from your paycheck. That will leave you with approximately $2850 or $2400. At the end of the day or shall we say at the end of the month you are giving your broker approximately $3400 on every $6000 of gross commissions. But that’s not all.
Broker Fees. Dynasty RE Online charges $495 flat fee on each transaction. Traditional broker may charge you $300 transaction fees and approx $100 processing fees. Let’s say last month you had two transactions each $3000, totaling $6000. With Dynasty RE Online you will end up paying a total of $990 in broker fees. That means that your net pay will be $5010! This is a huge difference compare to what most agents end up with.
On average, broker fees with a traditional broker will cost you $800 for two transactions and let’s not forget that you already gave your broker $3400. Let’s subtract from the remaining $2400 another $800 and we will end up with not much, a $1600 paycheck.
Now let’s look at annual comparison. Let’s take Dynasty RE Online monthly paycheck of $5010 and multiplied by 12 month. We are looking at $60,120 for the entire year. Let’s not forget our 50% arrangement with a traditional real-estate-broker. Let’s multiply $1600 by 12 months. You are looking at $19,200. Which annual income bracket looks better to you, $19,200 with a traditional broker or $60,120 with Dynasty RE Online?
Any way you slice it, you always will make more with New Century RE Online, an online broker who puts its agents first. Join us today, concentrate on a real estate let us help and support you in your career.