Becoming a real estate agent requires a lot of hard work and dedication, especially to build your reputation.
Having a commission-based job can be rewarding once you start making a lot of sales. As an agent, it depends on the location they are serving, what kind of clientele they have, what the market is like, if they are full-time or part-time, and ultimately, how much dedication they are putting into their work.
What Is The Commission Rate In Ontario?
5% of the sale price of the home will be split between the listen agent and buyer’s agent evenly, so each will receive 2.5%. Depending on the agreement between your agent and their brokerage, that 2.5% will most likely be divided in half again and your agent will receive 1.25% of the sale price.
If your home sells for $750,000, 5% is $37,500, meaning the listing agent and buyer’s agent will both receive $18,750. 1.25% of that is $9,375.
So, your REALTOR® who sold your $750,000 home will receive $9,375. 20%-30% of that will be spent on expenses like:
- REALTOR® fees
- Office rent
- Office supplies
- Administrative assistant
- Gas & parking
- Marketing (photographers, stagers, videos, ads, etc.)
What Does Their Yearly Income Look Like?
An agent starting out full-time should expect to make, on average, $45,000-$65,000/year.
Experts in Ontario typically make $100,000-$110,000/year. Becoming an expert does not happen overnight, just like with any career. It could take years to finally establish a top producing reputation.
On The Road To Success
With every career comes at least a few bad experiences. Do not let one bring you down. Remember why you chose real estate in the first place: it is your passion. Continue to thrive and push through. You will have tough customers and people not going through with a purchase or sale regularly, but the way you handle the situations thrown at you will help you shape your professionalism and will teach you how to handle similar issues in the future.
And remember that you are just starting out. Create realistic goals. You are not going to be showing million-dollar listings right off the bat.
Stay organized, positive, and professional. All the time and hard work you have put into shaping your career will definitely pay off in the end.
Disclaimer: numbers subject to change
Check for vetted Fivewalls agents here:
Agent Name: Jackie C. | View Agent Profile>>
Serving Area: Guelph
"Born and raised in Guelph, I know what our amazing city and surrounding areas have to offer. I have been selling Real Estate for 15 years now."
Agent Name: Jamie K. | View Agent Profile>>
Serving Area: Kitchener-Waterloo
"My entire working experience has always involved homes: from master electrician to new home builder and now, for more than 20 years and over 1000 transactions, as a licensed REALTOR®."
Agent Name: Cynthia Y. | View Agent Profile>>
Serving Area: Markham, Newmarket, North York, Richmond Hill, Scarborough, Toronto, Vaughan
"My goal is to utilize my extensive knowledge of real estate to ensure that your transaction runs smoothly."