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Real Estate agents actually do not make that much, unless they are top producers. The average real estate agent grosses about $34,000/year. The reason I say they do not actually "make" that much is you have to account for their expenses, brokerage fees, etc. For example on a $200,000 home offering 6% commission, the breakdown would be as follows: *Total Commission - $12,000 *3% to List agent - $6,000 *3% to Selling agent - $6,000 Agent breakdown 3%($6,000) = Subtract - 8% Franchise Fee = ($480) $5520 50/50 Broker Split = $2760 gross agent commission Now subtract taxes, licensing fees, marketing fees, expenses such as car, gas, etc. and the agent is not left with much for their valuable services offered such as preparing proper legal documents, negotiating the contract, cordinating inspections, title work, financing, not to mention advertising, marketing and showing the home. I hope this helps you understand that agents do offer valuable services at lower rate than you'd expect. Southeast MI REALTOR

by ginahermanrealtor

2 years ago

Asker's Rating: 

go find out.... if they make so much go become one

by Hamza H- 2 years ago

they know the laws they know all the scams that are out there and how to avoid the traps they know the current financing they know the current 'special' programs that you may qualify for they negoitate for you (less of a headache) they know what legal paperwork is suppose to be filed when they usually will go to closing with you so that they can review the terms and make sure nothing goes wrong. --so basically they are your "legal eyes" do you have all of this background?....good then go for it! :)

by Blue October- 2 years ago

A sale can take months, and it difficult to match buyers and reliable sellers. You also need to take a course.

by aug m- 2 years ago

this is not true....thats what each of the brokers take in and then they ususally split that with the agents. It usually is a 60% agent to 40% broker split. It is because they know the laws and they actually put a LOT of time into selling a house, They also have access to the Multiple listing service (MLS) which means any company can see that your house is being sold. They put in requirements for what the buyer is looking for and they can pull it up. Also when having an agent you will tend to get more money for your house which should make up for the difference. Real Estate agents have a large risk of a lawsuites against them if someone doesnt like how the house is in the end actually so they end up putting a lot on the line

by lonenightwolf13- 2 years ago

They make so much because of the time involved in selling a house. 3% is $6,000 on a $200,000 home. The agent is a college graduate, works weekends, is on call 16 hours a day or more....and may sell only a couple homes a month. She/he puts up with the worst kind of client. Even the nicest people can be very odd when shopping for a home. They use their own money to cover all expenses (gas, food, personal advertising such as cards, yard signs, etc...) and pay a percentage to the firm that they work for. And, a $200,000 home is not the norm for an agent starting out. Chances are that if your agent has been in the business for more than 5 years, he/she has worked very hard to get to a point that being a real estate agent is actually paying the bills. Think about your insurance agent. All he does is collect your money every month, right? His average income is more than the real estate agent's. SO...yeah, it seems like a lot. But, when you break it down, the only other choice is to sell it yourself, which is proven to bring less qualified buyers and a lower overall selling price.

by Bruce J- 2 years ago

You might want to ask my clients. I just closed a house that I fought on every side to get it done. Listing and showing houses is mostly what folks see. Contracts, negotiations, knowing terms and conditions, mortgage companies, appraisors, home inspectors, surveyors, title companies/ attorneys, legal issues that can affect buyer and or seller, escrow companies. There are sooooooooo many areas where things can go wrong so unbelievably quick it would make you shudder! The house I just closed had just one of these issues- the mortgage company. I seriously doubt that this deal would have closed with out the professional training that both me and my collegue have acquired. Yes there are times when we have easy deals, certainly. But, there are many times where our expertise brings about a successful outcome and our efforts and knowledge not only earned us the money from that closing but several others too. There is much more to this business than meets the eye and that is why only about 10-15% of people who become realtors make it to their first anniversary. You must be extremely tenacious and work like you are sitting on a high powered rocket that just had the fuse lit. Tons and tons of times I have gone to bed with my stomach in knots because peoples future and lives are in your hands. I have no second thoughts about the money we make. I believe in the system to the point that I aggressively marketed my own home in NY on MLS and reaped the benefits. I paid the realtor who sold my house very well and gave him every bit of incentive that was at my disposal because I expected him to give his all. And he did!

by sara h- 2 years ago