How Many Homes Would I Have To Sell To Earn $1M?

It depends on how much the average home is in your area. The median priced home in Contra Costa County is $650,000 so if your broker gets 2.5% that’s $16,250. If your split with your broker is 80% you get $13,000. Your expenses on the transaction are probably $2,600 which is the amount allocated to the transaction for belonging to board of realtors, gas, copying, etc. That leaves you with a net of $10,400. Then you have to pay tax on this net income of 26% federal plus 15.3% self employment plus a state tax if you live in a state like California which is around 10% so the total tax you will pay is 51.3% so your net after tax is $5,064.80. If you put every cent in the bank you would have a milion dollars if you sell just 198 homes in our area.

See how easy it is to earn $1m in real estate???

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