3 ms·
Especially when the $20k to the realtor isn't the full story. A usual realtor's pay would be: $20,000 commission: - 30% ($6,000) split with brokerage (Keller
by notaustinpowers 3y ago
Especially when the $20k to the realtor isn't the full story. A usual realtor's pay would be:
$20,000 commission:
- 30% ($6,000) split with brokerage (Keller Williams/Remax/Etc)
- 25% ($5,000) to set aside for taxes
- $799 for MLS fees (estimated at .12%)
- 20% ($4,000) for team splits
Leaving $4,201 for the agent, for what may be their only transaction for a month.
The reason NAR/brokers were so hellbent on not changing how the fees were handled is because this is going to hit them the hardest, a majority of these fees go to the broker/NAR.
- user90131313 3y agoI didnt know this and I assumed different. it's differeren in outside of USA. So my comment is not correct
- notaustinpowers 3y agoJust think of it as a much more complicated, legally allowed pyramid scheme here in the US.
- prepend 3y agoWhy is 25% set aside for taxes if the realtor is only getting 20%. This seems odd. Wouldn’t they only be taxed on income net of all expenses?
- notaustinpowers 3y agoIt's true that they would (really) only be paying taxes on the amount they earn, but that's still only calculated after the 30% (or whatever it is) split with the brokerage. The team split, MLS fees, photography, etc are part of the net income. So maintaining a steady 25% of the total commission allows for some wiggle room just in case.
- prepend 3y agoThat’s going to be way too much held over. If I have $4k in income then taxes will be 20-50% of that. The realtor does not pay the taxes of the brokerage. And all fees are not part of net income and not taxable. They are part of gross income and will not be taxed.