$450k is absolutely not "very high" and certainly not in NYC. NYC is a very high value market. Don't get me wrong, very few real estate agents % wise make that amount of money or more, but there are a lot of them that do. I'm not even in the top 1% nationally. Top 5% for sure.

Posting commission figures and such and actual split %s is a big no-no, but I'm towards the top end of average In my marketplace in terms of what I charge and my split is very strong (much higher than 50%, but very typical for someone with my production). We also do property management that I derive income from, but most of my income is from sales. We did about $25M worth of business last year which is very strong, but not extraordinary.

 

Top 10% make over $1million for sure in NY.

But your average RE agent is pulling in about $50-250k depending on market / experience etc.

 

Oh, average is even lower than that, it’s maybe $30k.

Lots of yokels running around trying to sell real estate that screws up the averages because the barrier for entry is so low.

 

IIRC, in RE something like 20% of agents make 80% of $.
I’ve had my RE license for 5 years, but do it on the side. Never put enough effort into building my brand, so it’s a listing here and there. As long as I make enough to cover my yearly fees (board and monthly), and there’s some money left behind, I’m fine. One of the top producing agents in my market (along with her husband) has closed on 220 deals within the past 24 months, at an average price of ~$450k. This is 100% residential... BUT, from what I heard, she reinvested every penny she made in the first couple years into advertising. She still spends easily over $100k on advertising, but her name is plastered everywhere.

 

Do you sell residential or commercial?

I thought about RE a ways back but didn't pursue it because of the challenges you listed plain as day. Like you said, you really have to stand out and make a name to be successful, tough it out for several years. Which is why they're a dime a dozen, same thing with lawyers--you need to stand out. I know people who tried it and sold one (or zero) houses and then gave up. OTOH, one of my best friend's in-laws are gazillionaires from real estate. They're buying properties all over town and flipping them, doing this all in cash with no loans. Their house is something out of Beverly Hills.

And when we bought our house, the amount of crap that went with the deal, I saw our REA's commission check when we closed it was not a lot for the amount of work she had to do for us, the amount of houses, etc. Us buying our first house was about a 6 month process. We lost out on several....that's got to be frustrating for someone depending on a commission check. She wasn't the greatest realtor, either, but ultimately we ended up in a great house and I never want to move, ever, so I guess that's all that matters.

So I'm wondering if commercial might be better as a venture, would there be less of the "picky people" and less BS overall bc it's business?

 

Residential, but I know a lot of commercial guys. Commercial is really different, there are a lot of different facets to commercial and its FAR less regulated than residential, which means there are more avenues for making money (commercial agents can get paid referrals for loans, etc where residential agents can't), but also more shady crap to deal with. Theres commercial leasing, sales, industrial, retail, office space, development, lots to consider. Typically employment is more "standard" in commercial with W2 pay, benefits, etc, but its more structured too which is a good and a bad thing. Commercial can be a lot more cutthroat. I would say they're very different but one isn't better than the other. May very well be better for you, more normal business hours. Working more with businesspeople instead of members of the public, etc. One of the most frustrating things about what I do is when clients make bad decisions you know are going to hurt them. Happens less dealing with businesspeople.

You find that as agents get more seasoned and experience they work with buyers less. My business is mostly listings at this point, with a few buyers as referrals sprinkled around and investor buyers tied into our property management arm. Time management is much easier with listings than buyers. It comes and goes too, some clients you get it done quick and get paid a pretty amazing hourly rate....some deals you're making minimum wage with all the effort you put in.

 

Sorry to have hijacked the OP's thread on Lexus salaries, but you all have educated me on real estate sales! There is no danger of me quitting my current job

 

Thanks, that's all interesting to know.

 

Steve,

As a broker you pick up the expenses for advertising and all the other operating costs. Do your agents get paid accordingly where they put in towards the expenses or they just get a percentage of the sale?

 

So my business is a little bit unusual, I am a Broker and do own a Brokerage, but that brokerage does the property management side of our business, we do sales through another broker. Financially and competitively thats just what makes the most sense. Everybody who is involved with the management is paid salary plus bonus.

On the sale side I have a team underneath me and then underneath the broker. Typically agents pay their own marketing and business expenses, but the company that we are with now actually pays them for us, so we have very few expenses we actually pay. Everybody on the team has a set marketing budget that gets paid and then above that is on them.

 

I'm a Lexus sales rep. I scanned through the posts but long story short:
The car business is the car business.

Luxury sales is a little easier due to the fact that most Lexus customers have been driving them for well over 15-20 years, they can afford it (less back and forth credit issues). It almost sells itself and it's about vehicle selection, treating people with respect, patience, be honest, etc.

I've made more money on a 2019 UX 200 (under $40k) than I did on a 2019 LC 500 (over $100k) for the fact of how big the discount was - And I can't complain because that's the pay-plan my coworkers and myself signed up for. You are scheduled for a lot of hours and almost never leave on time.

Overall, I made the switch from Audi and I am loving the product. I even got out of my Audi lease halfway in to buy a Lexus. But with any sales position, it's all about building your book of business. How much effort do you want to put in it?

 

How many hours a week do you work?

 

That's what it comes down and very true words. If you don't know 500 unrelated people/acquintances/friends/friends of friends, as a starting point - it's going to be a tough few years.

 

I am scheduled for for 51 hours per week but average just under 65.

 

Wow - are you making over $250k at least?
That is a lot of hours not to mention probably weekends and lots of holidays.