How Much Money Do Realtors Make?

How Much Money Do Realtors Make?

By Emilio DiSpirito, Realtor

www.TheRoundTableRadio.com

Watch the video to quickly learn how much Realtors and Real Estate Agents actually make!

Often times the general public will view Realtors as making money hands over fist!! Turn on the TV, see agents pull up in fancy cars, in the best attire and show million dollar homes... Hmmm.. not sure how that fits in with reality when according to Salary.com, the average Realtor in Rhode Island and Massachusettes earns a whopping income of $43,000!! 

$43,000 a year.. aka $827 per week! But Wait!!! Do Realtors get benefits? Are they employees? How many hours a week does a Realtor work? How do Realtors get paid when a transaction falls apart? Glad you asked! 

The answer to all of the questions below is NO!

• Realtors are considered Self-Employed and pay their own income and social security taxes!
• Realtors pay their own social security tax which is 12.4% 
• Now we are at $37,668
• Lets factor in $5226 in Federal income taxes
• Realtor is down to (not including any deductions) $32,442
• How about State Taxes? 
• Realtor is now down $1612 in Rhode Island
• $30,830 
• Realtor is now down $2193 in Massachusettes
• $30,249
• How about Health Insurance?! 
• Average age of a Realtor 53 years old according to National Association of Realtors
• $408 per month according to ValuePenguin.com
• Realtor is now down to $25,353

So when we deduct taxes and health insurance, your average Realtor is making $25,353! Per year!!! This amount does not include business expenses, brokerage fee's, gas, car payments, car insurance, mortgage or anything else associated with being able to live!!

So basically less taxes and health insurance only, the average Realtor makes $487..56 per 60 hour work week. Aka $8.13 per hour!!!

Isn't minimum wage $9.60 per hour in RI and $11.00 an hour in MA?

• Realtors make -$1.47 per hour less than Rhode Island minimum wage
• Realtors make $2.87 less per hour than Massachusettes minimum wage

Imagine that a highly trained and experienced real estate agent makes less than a high school student flipping a hamburger or folding clothes on a retail display.. insane!! 

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*Speak with a local accountant for details on taxes, etc. 

Hidden Costs of Home Ownership the Media Won't Tell You

Hidden Costs of Home Ownership the Mainstream Media Won't Talk About

By Emilio DiSpirito, Realtor & Host of The Round Table Real Estate Simplified www.TheRoundTableRadio.com

The American Dream of home ownership is alive and well!! It seems like everyone you know if off buying a home! Here are an estimated list of 7 hidden costs of home ownership that you may not have thought of!! Buckle down and budget accordingly!!

• Home Inspections, Appraisal, and Closing Costs (Median home $249,900)

• Home Inspections depending on what you are doing can vary in costs:

• Mechanical, Structural & Pest Inspection Estimated Cost $400 to $600 
• Septic Inspection $150 to $200
• Well Inspection 
• Flow Test $150 to $200
• Water Quality Test $100 to $150
• Radon Water Test $100 to $150
• Radon Inspection $150 to $200
• Total Estimated Home Inspection Costs? $0 to $1500

• Appraisal cost $450 to $600

• Closing costs associated with buying a home
• Title insurance 
• Lenders title insurance $600 to $800
• Owners title insurance policy $800 to $1000
• Attorney fee for preparation of documents $900 to $1200
• Recording Fees for Town $175
• Homeowners Insurance $1400
• Escrow for Property Taxes $1125
• Fuel Adjustments (oil and or propane)
• Mortgage Fees
• Processing fee $1000
• Pre paid interest $20
• Flood Certification fee $7
• Credit Report $50
• TOTAL: $6482 to $8832

• Packing, Storing, Moving! (For average 1500 sq ft home)
• Boxes, tape, packing supplies $20 to $350
• Monthly storage unit $0 to $200
• Moving
• Professional moving company $2000
• Uhaul Tuck $200
• Pizza & Beer for everyone $75
• Total: $295 to $2550
• OTHER
• Sewage Costs

• Septic pump $250 every 2 years
• or Sewer Bill Quarterly $200 ($800 per year)
• Sewer Assessment?
• Water Costs
• Water Treatment for wells?
• Lawn Care & Yard Maintenance 
• $500 to $2000 per year
• Basic Home Maintenance $1200 per year
• The Internet $1080 per year
• Utilities (Heat & Electric) $2500 per year
• Pest Control $100 to $1200 per year
• Other Total: $6680 to $8780

Items that can affect your equity position:

• Surrounding area land. Could it be developed into anything? Commercial or Low or High-End Residential High Rise?
• Being the biggest and best home in the neighborhood.

Homeowner bills may vary and there may be less or more than what was mentioned above. It's vital to understand the cost of home ownership and to plan accordingly to maintain your personal savings, a life of fun and a healthy life!

For more information on buying or selling real estate visit www.TheRoundTableRadio.com