From a summary of recent real estate issues and comments on Mortgage News Daily HERE, I noticed this comment:
Regarding the comment that real estate commissions are split 4 ways and a Realtor gets around 1.25% to 1.5%, that is as false as the belief that LO comp is good for the consumer. I own a real estate company and my Realtors get 100% commission with a flat $695 taken out per deal. There are many companies that now compensate this way. In my area, the average purchase price is $225,000 and the average commission is still close to 3%, giving my agents an average net commission of $6,055 in their pocket on each deal. The average deal takes about 20 hours of showing homes and another 20-30 hours of paperwork to the close. That is a max 50 hours of actual time working on a deal or $121 per hour for a job that requires no college degree, you can set your own hours and just 1 closing per month puts you at $72,000 take home pay per year. Please do not feel that Realtors are in the same boat or even ocean as loan officers."
Any additional comment or insight about Realtor compensation? Please add as comment to this post.