The median home price in Chittenden County Vermont is roughly $262,000. Under the prevailing compensation model in Chittenden County, real estate firms charge 6% to represent a seller and 3% to represent a buyer in Chittenden County.
Assume that an agent completes 12 transactions in a year or 1 per month. At the median sales price above that agent would have sold $3,144,000 of real estate throughout the year. Assume that 1/2 of the transactions were at the rate of 6% and the other 1/2 were completed at the 3% rate. The total fees collected by that agent during the year would be $141,480.
Assume that the agent retains 70% of the fees and the other 30% goes towards overhead, costs and expenses. The agent would collect $99,036 for the year.
$99,036 and only completing 1 transaction per month? Assume that a transaction took 40 hours of the agent's time (which based upon my experience as a real estate agent, real estate lawyer, buyer and seller is on the extremely high side), the agent could essentially make $100,000 working 1 week per month.
With all of the advancements in technology and agent efficiency, don't you think that the prevailing model is outdated?
For a more equitable model check out our buyer agent services where we rebate our fees to our clients.