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How do average home price points affect real estate agent income?
Real Estate AgentsReal Estate MarketingMortgageBuyersSellers
Answer
Average home price points directly impact agent income because commissions are a percentage of the sale price. For example, a two point five to three percent commission on a $350,000 home yields significantly less gross income than the same rate on a $900,000 home. Higher price points improve margin per deal, making one sale a month more financially viable. Agents should target markets and listings with pricing that supports their income goals.