PENSACOLA FLORIDA HOMES, Real Estate Listings - Pensacola, Florida Real Estate

How do real estate associates get paid?

There is a common myth that all real estate associates are rich!

Some are rich, but it may not be because of their real estate career!

All real estate associates are self-employed and receive no salary. Yes, that's right. They get no weekly pay check and have no expense accounts. Their loyalty and hard work will insure closing on your property and that 'closing' is when they get paid.

Every real estate commission gets divided between the listing and selling companies and their associates. Because all of these people are self-employed, all the expenses of running the company and the associate's personal business are paid by these commissions.

Some of these expenses are:

Company Expenses

Associate Expenses

Rent

Home Office Expenses, such as:

Utilities

Phones

Phone Systems

Office Supplies

Phone Service

Computers and Printers

Office Furnishings

Other Office Equipment

Office Supplies

Internet Access

Sign Riders

Web Sites

Automobile Expenses

Printing

Insurance

Yard Signs

Health Insurance

Marketing Materials

Insurance

Advertising

Computers and Printers

Printing

Digital Cameras

Web Sites

Copiers

Cell Phones

Fax Machine

Monthly MLS Fees

Office Rental

MLS Fees

Association of REALTORS® Annual Dues

Chamber of Commerce Dues

Personal Chamber of Commerce Dues

Advertising

Real Estate Schooling and Continuing Ed

Over the years, many good real estate professionals have left the business once they realize their "real costs" of being in the real estate business.

NOTE: When real estate professionals talk about being a "Million Dollar Producer" or "Top Producer" (or some other award level), these statements are based on the volume of sales (all sales prices added up - and it is double if they worked with both the buyer and seller in the same transaction.)

These statements may give some indication of their gross earnings, but not necessarily their NET earnings. The real estate professionals with the highest production levels may have VERY HIGH expenses which take away from their net income.

Learn How Real Estate Professionals Are Paid