The digital era has actually made getting the top price for the seller and lowest price for the buyer even more challenging. There is so much data available but so little relevant information.
Also, the behind-the-scenes work has not decreased. In fact, greater access to information has increased disclosure requirements as well our liability.
Don’t forget that the hypothetical 6% commission paid by the seller is usually split 50/50 between the broker for the buyer and seller. Each broker charges their agent around 20% leaving the agents with 2.4%. From that, each pays about 30% in expenses for belonging to the board of Realtors, MLS dues, errors and omissions insurance, marketing, etc. leaving them 1.68%.
But wait, there’s more. We are in the highest tax bracket in America because we are self-employed paying over 50% in most states leaving us with around .84% -1% after tax.
So, on a $500,000 home the average agent nets $4,200-$5,000 after broker splits, expenses and taxes. Does that seem like too much money for 2–3 months of work???
In addition, the average agent in America sells 3–4 houses a year… Do you want to change jobs with me?