An agent in my office does a lot of Broker Price Opinions (CMAs in Pennsylvania.) He covers about three counties for several different banks, holding companies, etc. Today he told me he was heading out to do two properties at the far end of our county about 30 miles away. For this he's getting $20 each, $40 total. I'm going to guess he has two hours of driving time with photos and finding the properties and related tasks. He probably has another hour involved in filling out the reports and uploading the pictures so lets call it three hours total. He drives an average car so let's call it 20 miles per gallon and assume gas is $4/gallon with a little added in for wear and tear, maintenance and the like.
Let's do the math on this project. He starts with $40. Our office is a 95/5% split. He's already down to $38. Next, he has to pay taxes on that money. Let's assume a 25% tax bracket. so now he's down to $28.50. 60 miles of driving at 20 miles per gallon with $4/gallon gas, that's $12. He's now down to $16.50. Before he even pays his office rent he's making $5.50 an hour. Minimum wage is $7.25.
My point is, know what your time is worth before you even get out of your chair. In all actuality he probably lost money on that project. As real estate agents we have to actively think about running a business and forget the idea that activity equals productivity.
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