Realtor's Expenses
I received a call earlier in the month from a woman I didn’t know that was attending real estate school. She said she had heard my name and wanted to pick my brain for a few minutes. We met over coffee at the office, she is bright and enthusiastic and could make an excellent realtor. Part of our discussion included income and expenses and it was an eye opener for her.
The current “average commission” is 5-6%. Typically the realtor gets ½ of that amount (as either buyer’s or seller’s agent). This sum is then “split’ with the agent’s broker. Depending on the agent’s split with their broker, the agent will then get anywhere from about 50-85% of that amount (the 2.5 or 3%).
Here are some of my monthly expenses to date (bills paid 8/1 - 8/24):
| Internet Optimization | $300 |
| Computer Repairs | $150 |
| Misc. Wages/Summer Part time help | $530 |
| Payroll | Confidential |
| Payroll Taxes & Fees | $708 |
| Charity (LA Times Summer Camp Fund) | $500 |
| Football Schedule Mailer (includes postage) | $552 |
| Car (ongoing, 5 yr. lease) | $795 |
| Staging of new listing | $300 |
| Keypad (lockboxes, billed annually) | $189 |
| Go Daddy (domain renewals & new registrations) | $491 |
| Set Up of www.PasadenaOnlineCommunity.com | $295 |
| Misc. Internet | $87 |
| Flowers for Client | $93 |
| Office Supplies | $255 |
| Gasoline for Phyllis & Natalie | $378 |
| Coffee & Water for Office | $148 |
| Office Phone | $250 |
| Cellular Phone | $204 |
| Custom Real Estate Folders | $390 |
| Print Advertising for my listing's ads | $1920 |
| GRAND TOTAL (not including payroll) | $8535 |
Typical minimum expenses for a new listing:
| Staging | $300+ |
| Photography | $85+ |
| Broker's Open House (Caravan) Refreshments/Lunch | $55+ |
| New Listing Mailer | $552 |
| Advertising (ongoing expense) | ??? |
WOW - so...the comment "realtors make all this commission and don't have to pay for anything" isn't so true - here's proof !!!
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