Trends
How do average home price points affect real estate agent income?
Real Estate Agents
Real Estate Marketing
Mortgage
Buyers
Sellers
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.
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