Why would anyone want to get into this ‘profession’?
The National Association of Realtors’ (NAR) membership profile states that the typical Realtor makes just $41,800 in commission income on 11 transactions. There are 1.3 million Realtors, in case you didn’t know.
For illustration, take the median income of $41,800 and deduct 30% from it for business expenses and taxes. You are left with $29,260 to live on and pay out of pocket for your health insurance, 401K (SEP), paid vacation, maternity leave, sick days, etc.
Works out to just $14.63 per hour based on a 2,000 hour work year.
Pity the poor real estate consumers, entrusting their sale or purchase of a $300,000 asset to a minimum wage earner. Then worse, the seller asks the listing agent to reduce the listing fee commission, and the buyer expects his agent to give a cash rebate.
We have discussed supply and demand before: too many Realtors allows the consumer to force price compression. I’m about to throw up.