Talk of The Villages Florida - View Single Post - NAR - Much ado about nothing? Realtor's Commissions.
Thread: NAR - Much ado about nothing? Realtor's Commissions.
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Old 04-03-2024, 02:01 PM
rustyp rustyp is offline
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Originally Posted by VillagerNut View Post
Great Post! I agree! There is one other BIG expense that the Customer does not realize about our perceived commission. Even after the 2 way split with 2 Brokers / Agents and even after the commission split with the Real Estate Broker, we then have to pay ALL of our expenses related to that transaction and real estate in general. One of the big expense items is as independent contractors we pay the TOTAL FICA amount of 15.3% instead as an employee we would pay 7.65%. So for every dollar we NET from our Broker, we actually keep 50% (50 cents on dollar) between income tax, FICA and other real estate expenses. Most folks think Real Estate is incredibly easy and profitable. It is far from easy or profitable for 80% of all real estate agents.
What about those items you wrote off - part of the room in your house as an office, mileage, all those many wine and dine the client events, depreciation on the car, etc. 50% ?