Best of Luck,
Century 21 Tenace
the agents make more than the broker! (Thats why they call them the broker LOL)
It is very expensive to run a real estate firm. It takes many agents paying a small portion of their commission to the broker/owner for the broker to make a profit. The broker has to pay the rent, the staff, Its a labor of love!
Each brokerage has its own commission plans.
Also, because the agent recieives this 'high' commission, lets look at what they have to pay for:
gas in the car, MLS fees, malpractice insurance, advertising, taxes, licensing fees.
Its most unfortunate that the consumer see the gross commission and not look at the big picture of the agent's income.
I have always been a proponent of negotiating the commission on a home from the traditional "six percent" UPWARD!!!
If your agent is demonstrating to you that they are making 'easy' money, then they are amazingly awesome at what they do and they deserve every penny of their commission.
Just ask someone who had to work with a 'discounted' agency...
In my humbliest opinion as I am 'just a lender' cg
As an aside, it is very difficult in the Bay Area to do 40 transactions in a year â€“ the competition is fierce, the cost of doing business is very high and only a very small number of agents reach that level. As an example, in Alameda County, 8,276 Realtors show up as active (data provided by TrendGraphix). Out of that number, only 46 agents sold 40 or more properties in the past 12 months. Thatâ€™s 0.56%. Of that number, many have REO contracts and their actual income per sale is low. If they are working for a brokerage that rebates a part of the commission, their income per transaction is even lower. And none of them are doing it on their own â€“ they all have assistants or teams â€“ all of which get a piece of the income pie. If you increase the number to 52 sales in the past year (one a week) the number dwindles to 24.