Why Do Realtor Fees “Seem” So High?

The gross amount that you see here is usually SPLIT between two Brokerages, the listing company and the buyer’s agent company.

From each split, USUALLY, one third will go to the Brokerage, this is the company that trains the agent and provides tools and software. It should be noted every company has a different split with their agent depending on experience, number of sales, what the brokerage provides, etc.

Another one third goes to pay taxes. All Realtors are self employed and pay social security tax and federal income tax.

The final one third goes to the Realtor personally. Out of that one third, Realtors must pay the items below to have and maintain a Real Estate Business. Instead of having a storefront, Realtors must pay for the items below to grow, maintain and operate their business. These are not cheap or unnecessary expenses. The Realtors who do not pay for the optional things below usually get out of the business because they cannot grow their business without most of these things. This is one of many reasons why there is such a high turnover rate with Real Estate agents. It is VERY expensive just to have and keep a real estate license.

A NEW AVERAGE Realtor sells between 4 & 6 homes per year.  A seasoned Realtor usually sells between 10 & 12 homes per year.