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What is the average commission?
Dipti nailed this one!
My average commission per transaction.
We have a really cool GCI calculator on our site.
Ginger, the average price (and commission) per listing.
Take the average commission for listings in your area and divide that into your 100.000 (example: 10,000 commission into 100,000 would be 10 listings)
Then divide this by your sales ratio. (example: you sell 75% of your listings. 10 divided by .75 = 13.33. So in this case you would need 14 listings to make your $100,000)
Your multiple listing service should have the statistics on the average sales prices in you community and that will provide the basis for your calculations.
Figure out if you have fixed expenses (e.g. realtor fees, desk fees, etc) and add those to 100,000. That will = X
Then, if you know your avg gross profit per job, take the 100,000 + X, and divide it by avg profit/job.
The profit per job needs to factor out your cost per job (e.g. marketing).
average home price to typical comission split, then divide into 100k - and aim/round low. Then I will likely surpass my goals!
I use a formula that I found online that takes the commission and divides it by the GCI, the outcome is based off the commission percentage though. If you do 3% that would be your basis. Take a look at your average list price to figure up your average commission. So for example average commission by transaction divided by $100,000 should give you a rough estimate.