Many naturally assume that real estate associates are making money.
But is it so?
Industry statistics reveal a different reality.
The national association of realtors study shows the average agent in the United States is closing 4 sales per year.
In the majority of the country where sales price average is in the $350,000 range, 4 sales will translate to GCI of $35,000 (that's the total commissions paid on 4 sales at $350k price range and a 2.5% commission representing one side, buyer rep or sellers rep).
Most agents at that level (4 deals a year) are on an average of 70% commission split, meaning the average agent is receiving a 1099 of about $24,500.
Behind the scene, you'll actually find 80% of the agents doing less than 2 sales a year while 10% are doing 10-20 sales a year, another 6-7% doing 20-50 sales a year and 4% with 50+ sales a year (the top producers).
Just like any field, sales, sport, businesses, we find less than 10% on the top, 10-20% in the middle and 70% at the bottom.
The real question is:
Where are you now in your industry?
Where do you wish to be?
How will you get there?
Any thoughts? Share below...