Not really. I am joking there is the potential to make good money in Cabot real estate, but consumers should consider a couple of things. We have a a lot of costs!! Being a real estate agent is like running a one man/woman business. Let me take some time to explain some of the expenses that a real estate agent has. I can not speak for every agent, but these are some costs that I have as an agent.
1. Half of Everything is split
When I close a deal I hae to split half of it with my broker. The broker takes the liability for the transaction and covers costs for the office so they get a good chunk of the agents money.
2. A Third of That Half Goes To Taxes
That is right, one third goes to taxes. There are ways to lower that amount, the best way is to become established as a sub-chapter S corporation. This helps to decrease the amount you have to pay in self employment tax.
3. Some Of The Left Over Goes to Office Fees
Our office has a couple of fees that agents have to pay every month. Some for office advertising and some for technology.
4. You Have to Advertise
Every agent needs to do their own advertising in some way or another. The advertising that the office does just is not enough. I have several advertising strategies that cost anywhere from $200-$350 per month.
5. Yes I get all the left overs
The money that is left over after that is what I get to keep.
I did not write this post to complain about my job and the money that I make. I just wrote it to let people know when you try to talk an agent down on their commission, the agent has a lot of costs they have to pay. Some agents can afford to go down dramatically on their fees, but if you understand the cost you will know that most can't.
If you have ay questions please visit me at cabot4sale.com.
Good Day
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