The earning of an average hardworking Real Estate Agent

After passing every turn of life, Ajax real estate agent enters into this profession. Some choose this profession for money, while some choose for fame, enjoying challenges and excitement of selling the properties in various locations. One most motivating factor to make you become an estate agent is to be your own boss.

Average income of a Real Estate Agent

Initially, real estate agents have to start with little income because of struggle and need of making client base. In average, most real estate agents make around $34000 to $45000 per year. Basically, their income depends upon the number of transactions completed, and the amount of commission paid as brokerage.

How they get paid with commissions?

Along with the broker agreements signed by the buyers which only allow paying direct payment to the broker of the buyer, there are many estate agents who are paid in accordance with a real estate listing agreement. It is made both by seller and listing agent. Then, this commission is shared between the listing agent and the estate agent who is representing the buyer. The commission of real estate agent is negotiable and is paid to the broker directly rather than agent. These agents do their job under broker. In fact, seller decides the amount of commission for buyer’s agent.

The listing commission of an agent varies from 1% to over 10% of total sales price. Suppose commission of agent is 7% with total split of 50% for brokerage, than how much a listing real estate agent could make?

For example, the sales price is $200000. The commission would be $14000 (7% of sales price). And $7000 of this commission will be retained for the brokerage. From this $7000, the agent will be paid on split and he will get around 60% of that income. It means, the gross income of an agent is $4200. It’s time to deduct it with federal and state taxes, which may be around 30%. Hence, agent will get only $2940 out of which 20% of the expenses and overhead would be paid by the agent. As a result, he will get $2100 as net income in hand.

Bottom Line

If you are looking for houses for sale in Ajax, than it is best to hire real estate agents because they could be your real helpers. In addition, they will also provide you true guidance of home inspections and getting pre-approved for mortgage.