Drudge Retort: The Other Side of the News

Drudge Retort

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Annual average houses sold per year by a realtor is 12 houses per year.
Median house value for 2023 was $417,700 per house.
Typical commissions are 6% - $25,062 gross commissions.
RE Commissions are typically split 50/50 by two agents - $12,531 per agent.
An agent's commission is typically split 80/20 with their brokerage - $10,024.80
Listing fee First MLS fee (GA) 0.12% of sale price - $501.24
RE Agent's supra access(required) - $16/mo
Net Commission (after basic expenses) - $9,507.54
FICA Self employment taxes 15.3% - $1,454.65
Federal Income tax - $1,731.68
GA State Tax - $374.18
Net Monthly Income - $5,947.03

So the average realtor has about $200 per day in spending money to run their business. (Yes Tax Pros, I'm leaving out the big mileage deductions and many other deductions for reducing tax liability. At least appreciate that I calculated the graduated taxes!)

To be fair, I know realtors who do quite well. One comes to mind who grosses between $350k-$400k/year selling real estate...but he also closes around 40 transactions, works 6 days a week, and is super diligent about maximizing his time. That and his wife had a come to wifey meeting when she got pregnant to put up boundaries for his work because clients can and will consume all the time you allow them as a realtor.

Being a real estate agent sounds lucrative and those fat commission checks look outrageous! Until you go 3 months without a closing and have to burn up savings because interest rates changed or the economy took a turn, or your lead sources stop producing. If it was easy, I would do it. It's not.

Drudge Retort

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