Real Estate Article:  How do real estate agents get paid?

There is a common myth that all real estate associates are rich!

Some are rich, but it may not necessarily because of their real estate career!

All real estate associates are self-employed and receive no salary.  Yes, that's right.  They get no weekly pay check and have no expense accounts.  They don't get paid until after a successful closing.  So be nice to your Associate.  Be loyal to them so they can get paid for their work for you.

Every real estate commission gets divided between the listing and selling companies and their associates.  Because all of these people are self-employed, all the expenses of running the company and the agent's personal business are paid by these commissions.

Some of these expenses are:

• Rent
• Utilities
• Phone Systems
• Phone Service
• Office Furnishings
• Office Supplies
• Internet Access
• Web Sites
• Printing
• Yard Signs
• Marketing Materials
• Insurance
• Computers and Printers
• Digital Cameras
• Copiers
• Fax Machine
• MLS Fees
• Chamber of Commerce Dues
• Advertising

• Home Office Expenses, such as:
•     Phones
•     Office Supplies
•     Computers and Printers
•     Other Office Equipment
•     Internet Access
• Signs or Sign Riders
• Automobile Expenses
• Insurance
• Health Insurance
• Marketing Materials
• Advertising
• Printing
• Web Sites
• Cell Phones
• Monthly MLS Fees
• Association of REALTORS® Annual Dues
• Personal Chamber of Commerce Dues

Over the years, many good real estate professionals have left the business once they realize their "real costs" of being in the real estate business.

NOTE:  When real estate professionals talk about being a "Million Dollar Producer" or "Top Producer" (or some other award level), these statements are based on the volume of sales (all sales prices added up - and it is double if they worked with both the buyer and seller in the same transaction.)  These statements may give some indication of their gross earnings, but not necessarily their NET earnings.  The real estate professionals with the highest production levels may have VERY HIGH expenses which take away from their net income.

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Keller Williams Realty West

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