Take a moment to consider what would be your perfect real estate agent. Are they tall or short? Is it a man or a woman? How old are they? How much money do they have? What kind of car do they drive?
Man Or Woman?
According to the National Association of Realtors, the typical realtor is a 54 year old white female who is a homeowner and attended college.
How many Brokerages Are There?
When you think of that agent, do you think about what real estate brokerage they are affiliated with? Is it Coldwell Banker, Sotheby’s, Century 21, Keller Williams, ReMax?
According to the United States census, there are 86,095 real estate brokerages operating in the United States
How Much Is Spent On Marketing?
I think a lot of the general public has a perception of real estate agents that is pretty far removed from the actual people involved in real estate sales. As an example, how much do you think real estate agents typically spend on marketing? According to a survey conducted by Real Estate Webmasters, 1 in 8 are spending more than $20,000 per year, and the top 3% of agents are spending more than $80,000 per year on their marketing.
Does this surprise you? It surprises me and I’m an agent! However, when I look back at my own spending over the last years, there is a lot of money going to marketing, without question. From the beginning of time, I suspect that listing your home has always been too expensive, and that real estate agents are just greedy. When you put something like yearly marketing expenses into the equation, all of a sudden, it turns out real estate agents need commissions to stay in business.
How Much Do Real Estate Agents Make?
What do you think the average real estate agent makes? According to the National Association of Realtors, gross income was $39,800 in 2017. So when you look at what is spent on marketing, and subtract that from the gross, do you picture a wealthy agent?
Why Do Our Perceptions Of Real Estate Agents Differ From Our Version Of Reality?
That’s been an interesting question to me for some time. I’m pretty sure that it has to do with the way real estate brokerages try to recruit new agents. As an example, you almost always see a help wanted sign at a real estate brokerage. Most of the time, they mean “commissioned sales”, but help wanted seems like a better way to get real estate agents, especially new ones who don’t know any better. Another way real estate brokerages recruit is that they tell perspective agents that there is the chance of “unlimited income”. While that’s true, I’ve seen quite a few agents stumble with the minimum income to survive part.
I’m not going to complain. When you are a real estate agent, you should already be aware of the challenges you face. It’s really no different than any other business, there will always be competition. There will always be market forces that determine how you will do within a given time frame. I don’t look at Deerwood Realty’s success as luck as much as I look at it as being thankful for the opportunity to serve our clients at the highest level. If you are considering selling your current home, or buying your dream home, please don’t hesitate to call us.