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Thread: Realtor Fees

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    Default Realtor Fees

    Everytime the topic comes up about "My realtor just took xx% comission on my house - what a ripoff". This is always countered by a realtor who claims "I don't get to keep all of that. I've got fees to pay". EXACTLY (real dollar amounts) how much money in fees gets subtracted from that. Ideally, what I'd like to see is a breakdown of exactly all the fees that would be subtracted from the gross commission until we arrive at the final net value. I'm contemplating getting into this field and I want to see some hard numbers rather than the ambiguous "I pay fees out of that comisssion" I always see tossed around.

    To get the ball rolling, let's say a $500,000 house was sold on the typical com schedule. 3.5% of the first $100k and 1.5% on the remainder to each realtor. So, $3500 + $6000 = $9500.

    $9500 - "fees" = "what" ?

    What are the exact amounts for the fees a realtor pays - all monthly/yearly fees as well as during transactions?

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    not sure if you will get exact figures as im sure every agency takes different amounts...expenses such as advertising, or whatever else. depends on if you are selling and purchasing agent....so many variables...even selling agent may have negotiated rate...

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    Be your own realtor, it's like being a ho without the pimp

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    ...
    Last edited by Sugarphreak; 06-21-2019 at 06:00 PM.

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    Originally posted by Awd-Tsi
    Be your own realtor, it's like being a ho without the pimp
    Did you read the original post? He's interested in a career as a realtor, not looking for somebody to buy/sell a house for him.

    There are a few agents on here that might be able to shed some light on the net vs gross fee structure.

    If you look at the car Jordan just bought, I would estimate he's keeping about 99.93% of the fees.

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    ...
    Last edited by Sugarphreak; 06-21-2019 at 06:00 PM.

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    Originally posted by Pacman


    Did you read the original post? He's interested in a career as a realtor, not looking for somebody to buy/sell a house for him.

    There are a few agents on here that might be able to shed some light on the net vs gross fee structure.

    If you look at the car Jordan just bought, I would estimate he's keeping about 99.93% of the fees.
    Yes he did; a pimp is to a ho what an agency is to an agent
    Originally posted by ExtraSlow
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    All fees are set by he agent....Why do us realtors always get slammed on. We all have to make a living, and choose what and how we want to do it.

    Chaulk my new car purchase up to me being a good saver, workaholic, having no hobbies, being a home body when not working, i dont really drink...I really do nothing buy work and come home.
    Last edited by JordanLotoski; 10-04-2010 at 09:16 PM.

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    Originally posted by JordanLotoski
    All fees are set by he agent....Why do us realtors always get slammed on. We all have to make a living, and choose what and how we want to do it.

    Chaulk my new car purchase up to me being a good saver, workaholic, having no hobbies, being a home body when not working, i dont really drink...I really do nothing buy work and come home.
    OK, maybe my original questions wasn't so clear.....I'm talking about all those fees/payouts I hear about that are unavoidable (CREA fees, license fees, listing fee, the % that goes to the realtors office blah blah blah). Perhaps you can pick a listing you recently did and show how your gross went to net? I know it's kinda personal, but I'm hoping just one listing won't be too revealing about your overall income situation. Really appreciate it, if you do end up doing it.
    Last edited by RedDawn; 10-05-2010 at 01:41 AM.

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    Obviously the licence fees, etc are a fixed monthly/annual cost, so how much that works out to per house depends on how many houses you sell. Marketing budgets, etc are all up to the individual realtor.

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    Originally posted by RedDawn


    OK, maybe my original questions wasn't so clear.....I'm talking about all those fees/payouts I hear about that are unavoidable (CREA fees, license fees, listing fee, the % that goes to the realtors office blah blah blah). Perhaps you can pick a listing you recently did and show how your gross went to net? I know it's kinda personal, but I'm hoping just one listing won't be too revealing about your overall income situation. Really appreciate it, if you do end up doing it.
    It really depends on the brokerage you are with. CREB and RECA fee's are about $3000 - $4000/yr depending on what extra's you pay for. Office fee's vary greatly. My office fee's are anywhere from $2000 - $2600/mo, but I have no office commission split or deal fee's. There's also a lot of user charges such as MLS listing fee, some brokerages have transaction fee's, personal website fee's, etc. The list really goes on and on. Including commission adjustments, all related office and industry fee's (excluding vehicle, phone, etc), I probably pay about ~$38,000 year to be in the industry. Thats really what you need to know... how motivated you are to bring in your own income is really up to you.

    On the flip side, you could probably spend as little as $5,000 to be in the industry if you're with a non-franchised brokerage with low overhead, low monthly fee's with deal fee's per transaction. There's brokerages like that out there. You also could skate by only doing the minimum marketing and only taking the required education courses for licensing.
    Last edited by HRD2PLZ; 10-05-2010 at 01:09 PM.

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    Originally posted by JordanLotoski
    All fees are set by he agent....Why do us realtors always get slammed on.
    It's because people don't understand the value of a realtor or what that realtor is doing for the money they are being paid. Some education is usually all it takes to help them understand

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    Originally posted by Pacman


    Did you read the original post? He's interested in a career as a realtor, not looking for somebody to buy/sell a house for him.

    There are a few agents on here that might be able to shed some light on the net vs gross fee structure.

    If you look at the car Jordan just bought, I would estimate he's keeping about 99.93% of the fees.
    comparisons > you

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    Each brokerage has different fee's the question should be if this is a good career choice for you, DON'T choose the career based on the fee's involved because you're just getting in for the wrong reasons.

    Nevertheless, regardless of the fees - to be a Realtor not Real Estate Agent ( And there IS a difference ) you will have to be accustomed to lots of fees. But if you're a true full time Realtor-those fees are worth being billed due to the share your getting from commissions.

    To answer what I think you want to hear because I think I know what you're doing... basically #1 figure out the goal of houses you want to sell (price & quantity) multiply it by 2.5% that will give you an estimate* and therefore you can estimate your salary....2% if you want to be real sure with fees included.

    Now even if you can come up with nice numbers, it's a statistic that only 1/5th of Realtors achieve their sales goals but only 10% of Realtors truly make a comfortable living and the top 5% are closing 3-6 deals monthly.

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    Default Re: Realtor Fees

    Originally posted by RedDawn
    $9500 - "fees" = "what" ?

    What are the exact amounts for the fees a realtor pays - all monthly/yearly fees as well as during transactions?
    Don't forget, it's split between buying and selling agents too.

    Unless you are on a splitting plan with your pimp/agency, you'll need to sell at least one house in that price range to cover your cost.

    And if you sell only 1 house a month, the money you get for the hours you worked is probably less than working @ Tim Horton's.

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    Default Re: Realtor Fees

    Originally posted by RedDawn
    .... I'm contemplating getting into this field ....

    Make damn sure you want to be in the industry

    the last 4 months damn near ended me. i had to drastically change my commission plan with my brokerage and cut back on a lot of things.
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    Is there a fee to keep a clients house on the MLS system? How much is this fee and how often does it reoccur?

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    Originally posted by RedDawn
    Is there a fee to keep a clients house on the MLS system? How much is this fee and how often does it reoccur?
    There is a one time listing fee. Its up to the Realtor and their clients to determine how long the listing will be on MLS. To be honest, I'm not sure if there is a maximum. Most Realtors list for 90 days at a time. There is a 60-day minimum.

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    Default Re: Re: Realtor Fees

    Originally posted by Xtrema


    Don't forget, it's split between buying and selling agents too.

    Unless you are on a splitting plan with your pimp/agency, you'll need to sell at least one house in that price range to cover your cost.

    And if you sell only 1 house a month, the money you get for the hours you worked is probably less than working @ Tim Horton's.
    It's 3.5% and 1.5% per side.

    So, using the numbers in this thread:
    $500,000 house
    $9500 in commissions per side
    $38,000 /yr all-in realtor costs (Approx $3200/month)

    Selling one house per month would mean $9500-$3200=$6300/month or $75,600 per year.

    Average that over the standard 168 hour month and you get an average wage of $37.50/hr.

    As well, since the yearly costs are comprised of some fixed costs, each additional house you sell per month is a greater percentage of profit than the first.

    Still think Tim Hortons pays better?

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    Default Re: Re: Re: Realtor Fees

    Originally posted by SJC


    It's 3.5% and 1.5% per side.

    So, using the numbers in this thread:
    $500,000 house
    $9500 in commissions per side
    $38,000 /yr all-in realtor costs (Approx $3200/month)

    Selling one house per month would mean $9500-$3200=$6300/month or $75,600 per year.

    Average that over the standard 168 hour month and you get an average wage of $37.50/hr.

    As well, since the yearly costs are comprised of some fixed costs, each additional house you sell per month is a greater percentage of profit than the first.

    Still think Tim Hortons pays better?

    That's only IF you make 1 deal a month and at the 500k/sale mark.

    alot of sales are sub 350k

    Some only pay out 2%/1.5%, 3/1, 2.5/1, and the list goes on. 3.5/1.5 is in most cases the top you will ever see.

    Some a flat $5k for a 500k house



    More than 75% of the realtors in calgary did NOT make the 12 deals last year. I was lucky enough to hit that.

    This year has been tough for me though.

    Its not all glitter and gold, the average 1st year realtor will only net 18k in their first year.
    Last edited by barmanjay; 10-07-2010 at 09:11 PM.
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