A better than average income?
I did the math
I’m not absolutely sure this is correct as my iphone calculator did not have enough space to go to a billion and I made an assumption about how many real estate agents are working in the Kitchener Waterloo area, but here goes…
KWAR reported that for the first time ever, over $3,000,000,000.00 in real estate sold last year in the Kitchener Waterloo area.
Last time I checked, there were 1200 real estate agents with KWAR as their home brokerage. And there are agents (like me) who are associate members that do all of their transactions through KWAR. I know a few Toronto area agents that do this. And there are a lot of Cambridge agents who work in KW. So, for simplicity sake, lets say that there are 1500 agents working in Kitchener Waterloo.
So, if my math is correct, you take the $3B and divide it by the number of agents and then you divid by the average commission rate to find the average income/realtor.
It works out to $80,000 in commission per agent. That is better than the average wage in Canada.
However, with brokerage fees, insurance, board fees… and other costs needed to maintain a license (not including advertising and other listing costs), we could easily take another 20% off of that.
So let’s say that the average Realtor in Waterloo Kitchener makes about $65,000/per year – a little better than the average but perhaps not as good if you consider the hours needed.
And then, we know that in most things, including the world of real estate, the 80/20 rule is evident — some would say a 90/10 rule with realtors. Personally, I know that there are Realtors that sell 50+ houses a year and I know that there are ten time more that sell 5 or fewer houses a year.
I know why this is. I wrote about it here.