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Real Estate Agent Pay - Chittenden County

The average Vermont family make $51,200 per year. What do you think real estate agents make?

According to data from the MLS and based upon the traditional 6% commission model charged by other firms, the top 5 agents in Chittenden County so far this year (January to July 22nd) have made between $292,000 and $587,000. Thus, they are on pace to make between $600,000 and $1,000,000 this year alone.

It is remarkable during the worst recession in history that real estate agents in a small community like Chittenden County can make in excess of $500,000 per year, much less $1,000,000 per year, and continue to get away with it.

We believe the public should demand fairer compensation models from real estate agents. We believe that our flat fee model represents a fairer compensation model and keeps our compensation much more in line with average Vermont incomes.

Thank you.

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  1. rfoley on

    Thank you for your comment. Our model is doing quite well. Thank you for asking. Our sales volume has been growing by approximately 100% annually since our inception. In regards to skills and knowledge base, I used to be a real estate lawyer. I also have bought and sold for myself over 20 times. I now own over 60 units with approximately 180 tenants. Additionally, I own a property management company that manages over an additional 300 units. In regards to clients suffering, you can read the testimonials on our website. Our clients do not suffer. They are grateful that someone has finally offered an alternative to the overcharging model of 6%. On average our clients save between $5,000 and $12,000. In regards to marketing, we probably spent more per client than any firm in Vermont. I assume you are not in Vermont otherwise you would know that we run tv ads and our one of the primary sponsors at the largest athletic events in the State. However, I digress to the real point. Rather than attacking our model, I think agents that charge 6% need to begin justifying their rates. We can justify ours. How do you justify charging 6%? (3% to the seller's agent and 3% to the buyer's agent). Most agents try to cry poverty when asked to justify their rates. They will tell sellers that "I only make 1% after I pay my firm and they pay their national franchise fees". If that is the case then the overhead in your model is too high. Just like any business with high overhead, it is doomed to fail. You need to reduce your overhead, as we have, so that you can reduce your rates. We are a full service company. We simply charge a fair rate and that is why the market has embraced the model so quickly and wholeheartedly. We look forward to helping more and more people realize that they do not need to pay 6% to get high quality real estate services. Thank you again for your comment.
    • Derek Gilbert on

      To all the seller's reading this Realtors typically make 3% of a sale. 1% goes to the broker. 1% goes to taxes, fee's, admin, & marketing, 1% actually goes to the broker. If the genius that posted this blog is trying to get your business how much do they spend on selling your home. Like any successful business there is always a 95/5 rule. 5% of the agents perform 95% of the business because they are good at what they do. Ask this company to show you their books and business volume. It's probably crap. Good luck trying to discount your service because you don't have the skill to do it any other way. In the long run the client suffers. There is a reason why the founding CEO of helpusell sold his house with a full service company. The model is a failure.
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