“Selling is the lowest paid, easy work and the highest paid, hard work”
This quote is very true for Real Estate sales. Many people enter the real estate industry with very high income expectations. These expectations are derived from their personal observations of Real Estate sales people and often never based on facts. Real Estate sales people drive fancy cars, wear nice clothes, charge huge commission’s and all they do is drive people around in their cars showing houses—What a great job! Ask a Real Estate Agent hows the market and invariably you will be told great - they must be making money.
While accurate incomes are very difficult to ascertain recent studies of Canadian Realtors have shown that the average Realtor makes between $30,000—$40,000 per year. This is not the huge income that many people expect. It’s hard work generating a client base, marketing yourself and your services and meeting your clients needs in a very competitive environment. A lot of people enter the real estate industry only to leave after a very short period of time or fail to live up to their income expectations.
At Century 21 John DeVries Ltd., we will help you succeed by;
- Ensuring that you have realistic expectations for your career.
- Supporting your decision to enter real estate.
- Training you with the most up-to-date and sophisticated training programs.
- Providing you with the tools and systems needed to be successful in Real Estate.
- Mentoring and coaching you through you initial days, months and years in the business.
- Helping you write and implement a successful business plan.
- Assisting in your growth and development as a Real Estate Professional.
Real Estate is a 100% commission income industry.
You get paid when you list and sell real estate. You incur expenses regardless of your success at listing and selling. One of the most important realizations a new agent must go through is that they are in business for themselves but with CENTURY 21 John DeVries Ltd. not by themselves. This means that in order to make money you will need to spend money - like with any business you will have fixed expenses - phone, real estate boards dues & fees, desk or franchise fees, etc and variable expenses marketing, listing fees, property promotion etc. Also as with other business' you will need to generate your own clientele to do business with
You earn income in the following ways;
- You list a house for sale and it sells through another Agent or Broker. (1 unit)
- You sell a listing of another Agent or Broker. (1 unit)
- You list a house and sell it yourself. (2 units)
- You refer a client to an Agent in a different part of the country.
In Ottawa the average house price (Based on MLS statistics) is approximately $390,000.00 and the average commission paid is approximately 2.5% per unit (5% per transaction). From this we know that the average gross commission to the Broker is $9,750.00 with the average Agent share being approximately 75% per unit (5% per transaction) From this we know that the average gross commission to the Agent is $7,312.50.
So in scenario’s 1 & 2 you would earn approximately $7,312.50 and in scenario 3 your would earn $14,625.00
- Close 12 units in a year earn $87,750.00
- Close 18 units in a year and earn $131,625.00
- Close 24 units in a year and earn $175,500.00
- Close 36 units in a year and earn $263,250.00
- Close 48 units in a year and earn $351,000.00
And so on and so on…….
But remember the average realtor earns between $30,000—$40,000 a year and in the scenarios above we have used a commission rate of 5% and the average house price for Ottawa. All of these things are variables that can change depending on your skills, abilities, market conditions and competition.
** Commission Rates are negotiable and rates in Ottawa vary from a flat fee of $500 to 6%+. **
Other rewards of selling Real Estate:
- Client Satisfaction - while getting well paid for working as a real estate agent there is no greater reward than a heart felt thank-you from a client after you have helped them buy or sell a home.
- Personal Satisfaction - similar to above but the personal satisfaction of knowing that you have helped someone achieve one of their largest financial transactions - buying or selling real estate. Often the clients will thank you but often they don't have the knowledge of the challenges that were faced during the process but you will know the work that you put into the transaction/negotiations, etc and this can bring great satisfaction.
- Flexibility of time/work hours - As a Real Estate Professional you can enjoy time off when others can't. Weekdays the ski hills and malls can be very quiet. When you are successfully you can also take extended vacations, trips to the cottage, etc.
- Making Money while on Vacation - one of the truly unique rewards you are sitting on a beach in Hawaii, mean while a colleague is back at home selling one of your listings.
For the successful Real Estate Agent it can truly be said that Real Estate is the BEST CAREER EVER - Financially and Personally rewarding.