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What role do home price points play in agent income math?
Real Estate AgentsReal Estate MarketingMortgageBuyersSellers
Answer
Home price points critically affect agent income math because commission is a percentage of sale price. Higher average home prices increase gross commission value, making it easier to cover expenses with fewer sales. For instance, selling one $900,000 home generates significantly higher commissions than a $200,000 home, improving economy of scale. Agents in lower-price markets must compensate by lowering costs or increasing sales volume. Price point strategies are essential for sustainable income from one sale monthly.