Do you want to know how much a real estate agent earns in Windsor? Experts have used statistics from recognized name organizations from 2015 to November 2016. These statistics revealed the following:
Of the more than 42,000 agents in Windsor:
- 20% of registered agents did not sell houses in that period.
- 52% of the agents were able to sell between 1 and 5 homes in the year.
- 14% of the agents were able to sell between 6 and 11 houses.
- 10% of the agents managed to sell between 12 and 23 homes.
- 2.5% of the agents managed to sell between 24 and 49 houses.
- 0.4% of agents were able to sell 50 to 99 homes.
- 0.1% (61 agents) sold approximately 100 houses.
- The breakdown of a real estate agent’s income
The price of a house in GTA for November was $ 776,684. There are many types of real estate commissions in Windsor. For example, the experts used a commission of 2.5% for the agent of the seller and a commission of 2.5% for the agent of the buyer.
• $ 776,684 x 2.5% = $ 19,417 (average commission).
In Windsor, real estate agents are legally required to work for a brokerage. Generally, brokers have many legal obligations such as supervising agents, maintaining trust accounts for buyer’s deposits, providing different services such as (design, reception, administration, marketing, exhibitions, and training).
Real estate agents must give a part of their commission to the broker, and this can be from $ 300 for each fee up to 30% of said commission. Other brokerage houses also have a commission for “Desktop Fee,” monthly, and agents must pay it whether they sell something or not in the month.
Many agents comment that between 15 and 20% of their income is normally paid to their brokerage. If we continue with the previous example, it would be that between $ 2,900 – $ 3,825 are paid to brokers by real estate agents.
Real estate expenses
An average real estate agent can spend 20-30% of her income on expenses alone. Which include:
• Auto, insurance, parking, gasoline, etc.
• Real estate fees
• Internet, telephone and data
• Laptop and tablet
• Home office, includes office supplies, tools, and systems
• Marketing (video, online, offline, postcards, photography, printing, billboards, customer events, postal gifts, etc.)
• Full-time or contract virtual administrative assistance
• Education (conferences, continuing education)
Another important point that cannot be left out when reviewing how much an agent earns is taxes. Windsor real estate brokers cannot join unless they have an under-brokerage.
This implies tax rates would be the same as for a person who is regularly employed. Between 25 and 30% of the income is destined to taxes.
When calculating the income of an average agent in Windsor who manages to sell six houses a year, with a $ 776,684, it would be:
Gross income: $ 116,502
Broker fees: $ 17,475 (15%)
Expenses: $ 23,300 (20%)
Taxes: $ 32,620 (28%)
Net income: $ 43,107
As you can see, it is also not such a glamorous amount with most people thinking. Although the main agents, if they can earn a lot of money, there are always expenses that must be taken into account, which happens in all businesses.