Special offer

Have You Ever Figured Out How Much you Make an Hour!!!

Reblogger
Real Estate Agent with Hughes Residential

Original content by Highland Beach Condos David Serle DRE# BK 3037665

"Nothing is a waste of time if you use the experience wisely."
Rodin

 

This is an interesting question that many of the top coaches and business leaders ask themselves everyday.  When broken down "How Much Do I Make an Hour".  I have to say that many of us probably make less then minimum wage.  Crazy, but true.  Let's take an example:

  • The average agent in our office sold 7 homes last year with an average gross commission of $52,000. 

Taking those figures above let's break it down.  I would say that the average agent in this market shows 20 homes to a buyer before writing a legitamate offer.  If each house takes 30 minutes that means you have spent 10 hours of showing property and maybe an hour of travel time.  So now we have 11 hours.   

How Long did it take for you to receive that lead?

Well I advertise on 35 websites, I cold call 2 hours each morning, and I send out just listed, and just sold cards 2x a month.

I am in the office for about 6 hours a day doing various paperwork, prospecting, and searching for properties.   I work at home off and on for another 4 hours.  I work 10 hours a day during the week.  That means I have 50 hours a week of work time during the week, and another 4 hours of work on Saturday.  I take Sunday off.  I have 11 hours of showing property times 7 equals another 77 hours a year. 

Writing up & Negotiating contract = 5 hours x 7 = 35 hours a year

Inspections = 2 hours times 7 = 14 hours a year

Appraisal = 1 hour x 7 = 7 hours a year

Following up with Lender, Title company, & real estate agent = 10 hours x 7 = 70 hours a year.

Walk through and Closing = 3 hours x 7 = 21 more hours a year.

Let's add this up.  we have 50 hours a week + 4 hours on Sat. x 52 weeks in a year = 2,808 hours

+ 77 hours for showing property

+35 hours for negotiating and writing up contract

+ 14 hours for inspections

+ 7 hours for Appraisal

+ 70 hours for following up with contract

+ 21 hours for closing

= 3032

divided by $52,000 means the average agent in our office makes $17 an hour.  That is definitely more then minimum wage, but look at how hard we had to work to get there.  Plus that does not even include having to pay taxes, and splitting it with your broker depending on what your split is.  The more correct figure is probably around $11 or $12 an hour.

This is one of the reasons I do not discount my commission in many cases.  Our time is worth money, and we have to value the business that we are in.  We must run our business like a business. 

How many times have you heard when someone askes a realtor what do they do?  They say I am a realtor, but I used to be a teacher or I used to be engineer.  Stop apologizing for what you do, and do what you do ver well in 2009!!!   Good luck to everyone and may we all have a very prosperous and healthy New Year.  Time to Shine in 09!!

 

Comments (0)