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And yet the stats tell us the average U.S. agent is only making on the order of $60k / year, so… how’s that work?
by poulsbohemian 3y ago
And yet the stats tell us the average U.S. agent is only making on the order of $60k / year, so… how’s that work?
- jstanley 3y agoThe commission attracts entrants until it is no longer worth new people taking the job? That's what you'd expect to happen! What's surprising is that this competition doesn't reduce the fee rate, that's the part I don't understand.
- poulsbohemian 3y agoThis is a combination of factors: -- In any market, there are agents with a range of compensation options. It really isn't as straightforward as the "6%" that the public believes. -- Brokerages more than agents set the commission. So you can have loads of new agents in a market and it won't change the commission. -- It costs money to represent buyers and sellers. Drones, video, photography, glossy magazine spreads, social media, advertising buys, brokerage, MLS, and other fees, signs, key boxes - I can spend thousands on a property listing or dozens+ hours with a buyer with absolutely no guarantees that I'm going to get paid.