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Here are 11 reasons why Boise real estate agents are like pizza:
1. You can get one just about anywhere
2. Some have lots of dough
3. Some have little dough
4. Some have thin crusts
5. Some have thick crusts
6. Some are spicy
7. Some are bland
8. Some are square
9. Some are round
10. Some are difficult to digest
11. Some give you gas
Ever noticed those Realtors® driving around with “Million Dollar Producer” license frames on their cars?
Well, here’s the truth about those million dollar producers.
Selling $1 million of real estate isn’t all it’s cracked up to be.
First, you multiply that $1 million of sales volume by the commission rate for the agent.
Assuming two agents in a transaction (one representing the seller; the other representing the buyer) who equally share a 6% commission, each agent receives a 3% commission.
3% X $1 million sales volume= $30,000 gross commission.
Then, the agent usually “splits” that gross commission with their broker, so we need to multiply that $30,000 by the percentage of commission the agent keeps.
Let’s assume that the agent is on a 65% “split”, which leaves $19,500 for the agent after giving up $10,500 (35%) for their broker.
This is actually a high commission split because many new agents start out with a 50/50 split with their brokers.
Then, the agent gets to pay their own expenses, including MLS dues, Realtor® dues, E&O insurance, health insurance, car payments, car insurance, gas, car maintenance, advertising, signs, telephone, website hosting, etc.
It’s pretty common for business expenses to run around 40% of commission income, which leaves an estimated net income of less than $12,000.
That’s equal to the 2014 poverty level for a one-person household, according to HHS guidelines.
As you can see, being a million-dollar producer is more of an embarrassment than something to brag about.
If an agent is only a million dollar producer, it might be a good idea to keep it a secret.
Most real estate transactions depend upon mortgage approval.
Here are 10 helpful tips for mortgage approval success.