Annette  Lawrence , Palm Harbor, FL 727-420-4041, Making FLORIDA Real Estate EZ  (ReMax Realtec Group)

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Rainmaker
3,061,351
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I get this question, Annette, as my office with just over 250 agents did $1.2 billion in sales last year. We are the most productive brokerage on a per agent basis in the Charlotte metro area. But that being said, we almost never "hire" a newbie... and maybe what your numbers say to a newbie is "come back" when you've established yourself and then join a wining team.

Apr 08, 2016 11:40 PM
Rainer
98,523
Becca Rasmussen
HomeSmart Cherry Creek - Highlands Ranch, CO

A newbie could derive from these numbers that:

  • the brokerage office has active agents,
  • the brokerage office is, presumably, successful,
  • on a purely numeric basis dividing the number of agents into the total income, each agent in the brokerage office is loosely (very) linked with $3,889,655.17 of that income,
  • and it might indicate to them, rightly or wrongly, that if they think they can't match that nearly $4M / year total they might then wish to seek seasoning elsewhere, or if they think they can they might have unrealistic dollar signs dancing before their eyes while they calculate potential commissions and forget to account for all their own costs, fees, etc. along with their newbiness

That's about it without more information.

Maybe 10 of the agents bring in 95% the transactions, maybe 135 of the agents have zero or 1 transaction a  year, maybe costs of running the brokerage sucks up 50% of that income, maybe other brokerages in the area do 2x that in a year, or 1/2 that, and so and so forth. Who knows? 

Well, you do most likely, but we don't. :0)

Apr 09, 2016 12:03 AM
Rainmaker
1,007,760
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

There are some agents in SF Bay area who can do $100-400M a year with one license. Keep in mind that is just 100+ transactions. Top producers are all leaving left and right name franchises who want arm and a leg to keep their commission, Name sake means little if you can find own customers.  

Newbies think they can replicate the experienced agents results and richness is on its way..... Top agents will unlikely to hire newbies and have agents and lots of assistants on their team.

With that being said, the officer handed out these $$$$$$$ checks decided to be a realtor after seeing all $$$$$$$$. She knows every one and got on some team she earned 1/3 of what she was getting $$$$$$ as a coordinator last year.  She left her RE sales and returned to her old job!.  

Apr 08, 2016 11:53 PM
Ambassador
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Always value quality over quantity. Quantity withour quality is a hollow victory if a victory at all.

Apr 09, 2016 12:25 AM
Rainmaker
2,447,016
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The most relvant number is the one in your own banking account

Apr 09, 2016 12:07 AM
Rainmaker
1,054,777
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Impressive 

Apr 08, 2016 11:40 PM
Ambassador
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hard to say - could be the work of very few agents while the rest contribute litte. It certainly does imply a successful office

Apr 09, 2016 12:33 AM
Rainmaker
2,981,595
Richard Weeks
Dallas, TX
REALTOR®, Broker

Not much if 10 of the 145 agents did over 50% of that sold number.

 

Apr 09, 2016 12:11 AM
Rainmaker
5,347,776
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I like the answer by Nina Hollander

Apr 09, 2016 12:11 AM
Rainmaker
845,965
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

I remember when I was a newbie and had BIG $$ signs in my eyes. I would look at that figure and do simple math to arrive at almost $4M average per agent. I'm in! Funny how it doesn't work that way but....

Apr 08, 2016 11:41 PM
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

It really tells them nothing, they should be asking how much the average new agent made at their office last year.

Aug 11, 2017 11:37 PM
Rainmaker
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

no idea - it depends on how the newbies are doing - 

Apr 09, 2016 11:20 PM
Rainmaker
1,231,211
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I'm the top producing agent worldwide for Huggins Homes!  Oh, did I forget to mention I'm also the only agent and we're only one office.  To me, numbers don't lie but they don't tell the whole truth, they say what you want them to say.

For example: Out here in, say Malibu, Lake Sherwood or North Ranch 564 million can be 15 transactions, maybe 20 tops.  In some areas out here, that could be 4-10 transactions.

 

Now as to your numbers: 564mil/145 agents means the average agent sold 3.8mil worth of property.  My question as a newbie or someone looking to join would be around the 80/20 principle.  20% of agents are doing 80% of the business (in general).  What is the ratio at your office?  What do the lowest production and highest production agents do?  What is the average sales price for the average agent versus the top producing agents?  Where would I fit in at my current level of production and do I think I could maintain that level of production when there are bigger fish in the same pond, versus me being in my own pond and able to define myself as a unique individual/company?

I'd also want to know where your team ranked overall for the city/county areas as well as another dosage of average sales prices.

Apr 09, 2016 03:26 PM
Ambassador
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

well that the broker isn't reviewing all the contracts which is required by law in my state.

Apr 09, 2016 12:50 PM
Ambassador
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

It looks huge to me especially when our average sales price in MLS is about $165,000 and a population of 150,000 in the city. Everything is relative.

Apr 09, 2016 11:46 AM
Rainmaker
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Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

That is a huge number.  Price point makes a big difference...

Apr 09, 2016 11:03 AM
Ambassador
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Annette Lawrence , Palm Harbor, FL 727-420-4041 - well, some numbers are to be proud of! Yes!

Apr 09, 2016 09:26 AM
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Annette,

I am in the same camp as Joe Pryor .  Wishing you a great weekend.  A

Apr 09, 2016 08:23 AM
Rainmaker
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

One can spin the numbers in many different ways.

Apr 09, 2016 08:13 AM
Rainmaker
3,144,320
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

That the office have agents that work the business.

Apr 09, 2016 07:51 AM
Rainmaker
732,835
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

There is upside in real estate.

Apr 09, 2016 03:54 AM
Rainmaker
1,536,835
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

5% sold $451,200,000?

Apr 09, 2016 02:47 AM
Rainmaker
1,528,076
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Becca did a good job.

But it's a good idea to find out how many of those agents only sold 1 house per year - too many means they are bottom heavy. 

Also, that's a lot of agents for sq footage (think if they all pile into a 10x10 room) which might mean as a newbie you'd have to fight like a shark for resources.

Apr 09, 2016 02:19 AM
Ambassador
1,635,070
Alan May
Coldwell Banker Residential - Evanston, IL
Helping you find your way home.

Them's some big number Annette.  Impressive.

Apr 09, 2016 01:51 AM
Rainmaker
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Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Doing a quick crunch of those numbers, deducting likely expenses . . . I would tell a newbie that there's money available to be made out there, but it depends on your skill level and many other factors how much of that probable approximate $60,000 net per year you will have access to. :)

Apr 09, 2016 01:35 AM
Rainmaker
1,310,630
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

When I see statistics like that, I think of the Pareto Principle.  20% of the agents are probably creating 80% of the sales volume.  I would be interested in knowing what the "median" income is as compared to average.

Would a newbie be intimidated by the high producers... or is it an environment that would nurture a newbie?  Numbers are only one part of the formula for success.

Apr 09, 2016 01:33 AM
Rainmaker
3,981,341
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It may give sellers confidence in you, byt then again they may ask home much you sold...

Apr 09, 2016 01:06 AM
Rainmaker
1,157,274
FN LN
Toronto, ON

Without an analysis of the underlying data building up to the number, very little.

Apr 09, 2016 12:58 AM
Rainmaker
923,178
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Since the average agent, according to NAR made about $32,000 (GCI) in 2015.

If you were to equally divide your agents into your production:

Your office's average agent did $3,889,655.17 in gross sales, which is (assuming 2.5% avg. commission) $97,241.37 (GCI) AND a hell of a recruiting statement.

Apr 09, 2016 12:50 AM
Rainmaker
1,252,231
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

With proper work ethic's they would be able to expand that number.

A newbie would find it impressive and could be overwhelmed if they were hired and did not come close.

Apr 09, 2016 12:29 AM