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With all of the advancements in technology and agent efficiency, don't you think that the prevailing model is outdated?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.
Contact Flat Fee Real Estate with any questions about real estate opportunities in Vermont.