Busy at work!
Today is Monday the 8Th of December 2008. It's hard to realize that this year is almost over. Just 23 days left in the year that's just .06% of the year. In case you were wondering.
Business has been progressively busy over the last few months and looks like it could continue through the beginning of the new year. This is fantastic since mid November through December is considered the slowest time of the year. Mostly due to the holidays and the fact that people are focusing their time and energy there instead of house hunting.
I have to thank Craig and his father for their continued business. These two have put their trust in me and given me enough business alone to make it through the slow winter season. I have represented them with several purchases most of which were purchased for less than the were willing to spend overall.
Many agents believe selling homes that are listed for less than $20,000 are a wast of time and require more work than the commission is worth. I beg to differ.
Here's how I view it. Were going to use simple numbers for this example. These are not 100% accurate and may vary greatly transaction to transaction.
here it is.... Lets say a buyer is willing to spend $200,000 for a home. We'll say the commission is 3% of the purchase price. This would net a commission of $6,000.
Now lets change this scenario a bit. Lets say the buyer is willing to spend $200,000 toward many homes. He/She is willing to divide the $200,000 up and spend a max dollar amount of $20,000 per home. At first one might think the commission is going to be the same at 3%. This is not true. Many times when a home is listed for less than $40,000 the commission is changed from a percentage to a flat rate. This flat rate is usually $1,000.
So, if the commission for this $20,000 sale is $1,000 and I sell 10 homes for $20,000 totaling $200,000 the total commission would be $1,000 X 10 = $10,000. This is a $4,000 commission increase from the individual sale of $200,000.
You do the math:P
Many would say not a bad income and I would agree however there are many fees not removed from this commission up front.
Here is a list of fees you might not be aware of.
MLS Fees $300+ per year
Local/State/National board fees $800
The cost of supplies (paper, Ink, postage...) $1500+per year
Brokerage fees Up to 50% of commission
Signs $800+per year
Cost to operate vehicle (Gas, Oil, Tires...) $400+per month *BTW I have a Honda Fit
Time researching, driving, waiting for clients $You decide this value
Taxes 32% of Commission (Basically a third)
I'm sure there are other fees I've forgotten but I'm sure you get the idea.
-Tom
Business has been progressively busy over the last few months and looks like it could continue through the beginning of the new year. This is fantastic since mid November through December is considered the slowest time of the year. Mostly due to the holidays and the fact that people are focusing their time and energy there instead of house hunting.
I have to thank Craig and his father for their continued business. These two have put their trust in me and given me enough business alone to make it through the slow winter season. I have represented them with several purchases most of which were purchased for less than the were willing to spend overall.
Many agents believe selling homes that are listed for less than $20,000 are a wast of time and require more work than the commission is worth. I beg to differ.
Here's how I view it. Were going to use simple numbers for this example. These are not 100% accurate and may vary greatly transaction to transaction.
here it is.... Lets say a buyer is willing to spend $200,000 for a home. We'll say the commission is 3% of the purchase price. This would net a commission of $6,000.
Now lets change this scenario a bit. Lets say the buyer is willing to spend $200,000 toward many homes. He/She is willing to divide the $200,000 up and spend a max dollar amount of $20,000 per home. At first one might think the commission is going to be the same at 3%. This is not true. Many times when a home is listed for less than $40,000 the commission is changed from a percentage to a flat rate. This flat rate is usually $1,000.
So, if the commission for this $20,000 sale is $1,000 and I sell 10 homes for $20,000 totaling $200,000 the total commission would be $1,000 X 10 = $10,000. This is a $4,000 commission increase from the individual sale of $200,000.
You do the math:P
Many would say not a bad income and I would agree however there are many fees not removed from this commission up front.
Here is a list of fees you might not be aware of.
MLS Fees $300+ per year
Local/State/National board fees $800
The cost of supplies (paper, Ink, postage...) $1500+per year
Brokerage fees Up to 50% of commission
Signs $800+per year
Cost to operate vehicle (Gas, Oil, Tires...) $400+per month *BTW I have a Honda Fit
Time researching, driving, waiting for clients $You decide this value
Taxes 32% of Commission (Basically a third)
I'm sure there are other fees I've forgotten but I'm sure you get the idea.
-Tom
posted by Tom at
4:10 PM
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