m city condos phase 5 price list.The annual commission of a Canadian real estate agent is C $19.2 billion. The prices of everything from food to gasoline to housing are rising, and the wages of most migrant workers are unlikely to rise as fast as inflation, but there is at least one group whose income has successfully exceeded inflation: real estate agents.Please Visit: m city condos phase 5 price list to Get Your VVIP Registration Today!
“I think everyone has experienced some inflationary disasters, but in our industry, inflation is very lucky,” said Amy Leong, a broker at Engel and Volkers in Vancouver.
To put it simply, the national average house price in Canada in 2021 soared by 26% in a year, and the income of most real estate agents rose at the same time because their salary was based on a fixed percentage commission on the sales price.
It is difficult to determine how much commission brokers receive: in some markets, 5 per cent of commissions are shared by buyers and sellers, while in others the ratio is close to 3 per cent, and in some cases it may be as high as 6 or 7 per cent. A few transactions are sold for a fixed fee or without commission.
Phil Soper, president and chief executive of Royal LePage, Canada’s largest brokerage brand, which has 22000 brokers, said that according to his data, the average commission in 2021 could be 4.1 per cent.
“over the past few decades, commissions have tended to fall by about 5 basis points a year: 5 per cent 20 years ago and 6 per cent 20 years ago,” he says. ”
According to the Canadian Real Estate Association (CREA), 660000 6995 homes were sold in 2021, with a total turnover of $481.1 billion. Assuming that the average commission of a real estate agent is 4% per transaction, the commission income is expected to be as high as $19.2 billion.
However, according to Soper, the money is not evenly distributed to real estate agents.
“income does not tend to increase linearly with house prices, which is a sad fact in the industry,” he said, adding that statistics show that thousands of brokers sell only one or fewer homes a year. Competition is also fiercer. Canada now has 150000 licensed real estate agents, up from perhaps half 20 years ago. In a hot market, a buyer’s agent can take clients to 13 house displays and make offers, but can only win one of them, which means the other 12 are the time when they don’t get paid.
“if you do well and become the pinnacle of your business, 2021 will be a record year for you,” says Soper. “the whole industry hasn’t seen the windfall you might think.”
The amount of money in a transaction can be huge. For example, in 2004, 18 years ago, a four-bedroom house in Toronto’s Don Mills neighborhood, 9 Waxwing Place 9, was sold for $635000. The 5% commission will be divided equally between the real estate broker and the listed broker at $31750.
In February 2022, the house was sold for 2.05 million yuan, which means that if the two brokers can get a 5% commission, they will share 102500 yuan equally. The increase was 222%, which was 125% higher after adjusting for inflation.
In 2004, the Toronto Regional Real Estate Bureau (TRREB) recorded 83501 transactions with a total turnover of $26.32 billion. Therefore, if the average commission is 5%, the real estate agent can get a commission of about $1.3 billion.
By 2021, the sales area of TRREB will be expanded to 121712 cases, with a total value of $133.3 billion. If we accept the fact that the current average commission is 4.1%, that is a commission of $5.4 billion. It has increased by 315% over the past 18 years. If you calculate the average income of all 66000 TRREB members, it is equivalent to an income of $81000 per person.
In a seller’s market where house prices are soaring, owners may put pressure on real estate agents to reduce some commissions. ”
Jeff Lee, an agent at Engel and Volkers Montreal, points out that some sellers think that fixed-fee or zero-commission services can be done equally well, but they tend to come back to him eventually. “when they can’t sell, they will call us.”
However, commissions do not seem to have fallen sharply: of the 8150 houses listed in TRREB, only 59 have co-operative commissions of 1 per cent.
In fact, the commission of a top broker may be much higher than 4% or 5%.
Toronto Bosley Real Estate Ltd. “I have a process that has been perfected for 18 years, and I spent a lot of money on listing,” said Dave Fleming, a broker. ” The costs of marketing and layout can add up to tens of thousands of yuan, he said.
“I have a client. I said, if you invest $50, 000, you’ll get $250000. We listed at $1.4 million and finally closed the deal at $1.6 million. After five weeks, I didn’t charge them any more money, which is the value they got. ”
“another person said to me,’I won’t pay you 5% interest. I don’t need your foolishness. Sell my damn apartment. I said, this isn’t about me. I’m trying to make the most money for you. ”
There are also income risks in the real estate industry: brokers don’t get paid, rely on the number of sales they can complete, and there is no guarantee that similar transactions will be maintained until next year.
However, compared with 20 years ago, how much money real estate agents make per transaction now can not be ignored. According to Statistics Canada, the average hourly wage in other sectors of the Canadian economy rose from 18.50 yuan to 30 yuan between 2004 and 2021. These figures, unadjusted for inflation, grew by 66%, and even the highest-paid utility workers grew by only 78%.