Wendi, Real Estate Pro in Santa Barbara, CA

Lets say I make my first sale in real estate. With 3% on a $800,000 home how much could I expect to make?

Asked by Wendi, Santa Barbara, CA Thu May 8, 2008

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You could expect to make 24,000 off that deal but you need to take into consideration the split with your broker as well as taxes! Do not forget taxes! A more realistic number to expect to net would be about $6,720 which takes into account a 30/70 split with broker (which is standard in my area) as well as about 40% or so set aside for tax purposes. Again, it will vary from brokerage to brokerage and from agent to agent. Good luck!
0 votes Thank Flag Link Sat May 16, 2015
Your commission will be based on the agreement that you and your broker signed off on. If you have a split that is more than 50% you are doing really good. Don't forget to subtract your expenses to arrive at your net. Expenses includes your taxes..........
0 votes Thank Flag Link Fri May 9, 2008
$12,000 assuming a 50/50 split with your broker and not including any other fees or expenses.
0 votes Thank Flag Link Fri May 9, 2008
Everyone's net is going to be different. Only you know your expenses. Some Realtors invest heavily, others do not.
0 votes Thank Flag Link Fri May 9, 2008
Deborah Madey, Real Estate Pro in Brick, NJ
Wendi, That would depend upon your office. Each office will have an employee/independent contractor agreement with you that will define what fees are to be paid to the company, client, E&O insurance, risk management fees, desk rental fees, etc. These fees are typically taken out of a commission check after the company's percentage is deducted from the gross commission earned. Any advertising and marketing expenses are usually paid by the agent prior to any sale transaction occurs. We incur those expenses with no guarantee that the home will sell in order to recoup our out of pocket expense. If you are newer to real estate then your split with the real estate company could be a 50/50 split or in that ballpark. You just need to do the math. With any business, you need to spend money to make money and the first year in real estate can be the most difficult. But if you are meant to help buyers and sellers in their home relocations, you will endure. Good luck!
0 votes Thank Flag Link Fri May 9, 2008
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