How much does a real estate agent, beginner, can potentially make in this area?

Potentially less than zero if they put time and money into education and then didn't sell anything.

Depends. Commissions are negotiable and splits with your broker can vary. But in full-service firms, assuming a 6% commission, an individual agent would end up with 1.5% (1.5% to the listing agent, 1.5% to the listing agent's broker, 1.5% to the buyer's agent, and 1.5% to the buyer's agent's broker). If the same agent handles both sides of the transaction, he/she then would get 3% . . . but that's pretty unusual in this area.

So: 1.5% of what? If you're selling $200,000 condos, that's $3,500 per sale. $500,000 single-family homes and that's $7,500 per sale.

How many sales? One a month (12 a year) would bring you to $42,000 using the condo example, or $90,000 on the single-family home sales. A beginner isn't likely to sell 12 in his/her first year, but it could happen.

But that's the gross amount. Subtract membership dues to NAR, VAR, and NVAR. Subtract the MLS membership. Subtract the Sentrilock (lock box) fee. Subtract fees for mandatory continuing education. All that's at least $3,000. Subtract your marketing expenses. Subtract auto expenses. If you don't have a spouse with health insurance (and you want/need health insurance), subtract that. Insurance--including errors & omissions)--subtract that. Subtract educational expenses for any certifications or designations. Travel and registration for VAR and NAR conventions, if you decide to attend. Very roughly, you're probably looking at about 30% overhead.

Bottom line: You could end up around minimum wage. Or you could do quite well.

As the poster above said, it can be a tough business, but also one you can make a lot of money at if you're really good - sort of like other sales roles.

However, I can only see it getting more difficult and margins getting squeezed as things like the Internet tear down that wall of information asymmetry and make the ease of performing certain services (picture uploading, etc.) trivial and doable by the end-customer.

I'm surprised there are as many realtors as there are - maybe a lot of people think they'll just sell a million dollar house every month and be rolling in dough.

Its a lot like selling Avon, if you dont have a customer base and referrels then you can forget it.

who is actually good at it in fairfax county?

real estater? Wrote:
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> who is actually good at it in fairfax county?


Start here?

2010 Multi-Million Dollar Sales Club Directory

http://nvar.com/images/documents/2010-mdsc-directory.pdf

Note they have examples of correct and incorrect usage on page 6 - I've repeatedly seen this guidance completely ignored.

Just don't do it. In this world, Real Estate Agent is just another name for a fake job.

I don't know that I would hire an agent simply because they are in the "top producers club"...that can mean that they've been successful at marketing themselves to a large number of future prospects (who probably hired them based, in part, on that top producer label).

Doesn't necessarily mean they've done a great job for their clients-you can get a house "sold" without having your client's best interest in mind.

I would look to hire someone based more on recommendations from past clients.