No Responses to “Top Ten Boston Real Estate Agents – 2008” »»

1. Steve
   Comment by Steve | 12/20/08 at 6:56 pm

   Dear John,

   When looking at these figures, it is correct to look at them in this way?

   Using Steven Cohen as an example, there are four columns above (Listed & Sold, Listed/Not Sold, Sold/Not Listed and Total).

   In terms of actual money generated for his firm, would you only add the sold columns (whether listed or not)?

   That would then be $22,002,000 in total sales price. Assuming a 6% commission on all sales, this would equal $1,320,120 in revenue for his office/team.

   This revenue would then be divided among his team (including himself).

   Is this the correct way to look at these figures?

   Steve

2. JohnF
   Comment by JohnF | 12/21/08 at 8:31 am

   Steve, You made some good points. But please note I didn’t create the list. The list was created by MLS based on their sales data.

3. Steve
   Comment by Steve | 12/21/08 at 10:16 am

   Dear John,

   Please don’t misunderstand my comments. I am a long time reader and enjoy an open conversation. I am a small business owner and often think about the economics of running my business (non RE) and wondered if this is how you would look at these numbers from a RE owner operating perspective. It is interesting to see how much volume one has to do to support a large team.

   Whether sold or not, it is impressive the numbers shown for each agent.

   Happy holidays.

   Steve

4. JohnF
   Comment by JohnF | 12/21/08 at 10:14 pm

   Steve, good luck with your business and I hope you have a prosperous ‘09.

5. John Keith
   Comment by John Keith | 12/21/08 at 11:02 pm

   Steve, I thought I’d chime in to a conversation I’m not a part of.

   I heard once that you should never count someone else’s paycheck. So, it may be rude to discuss what people are making in commissions, but since you asked …

   A way to look at the chart is that if an agent both listed (listing/sales agent) and sold (buyer’s agent) a property, then he/she got both sides of the commission.

   Mostly, in Boston, commissions are 5%, but less if it’s a multi-million dollar listing or if the agent has multiple units in a new development.

   On the chart, if you’re trying to figure commissions, multiply numbers in the first column by 5%. The second and third columns are if the agents only handled one side of the transaction, either for the buyer or the seller. So, figure he/she received 2.5% of the sales price.

   As you mention, the agents have to share their commissions with their companies (their brokerage firms). Since these agents are “high-performers”, we can assume they get a pretty big split. Perhaps 70-90% of commissions, after certain thresholds are met. (Each agency is different; Coldwell Banker takes a cut of every deal, whereas others, such as Keller Williams I think, only take up to a certain amount, then you keep 100% of each deal.)

   If you are wondering how much the brokerages make, not how much the agents make, then you might be able to figure a rough estimate by taking the first column, multiplying it by 5% and take 30% for the company split, and multply the second column and the third column by 2.5% and take 30% for the company split.

   That’s as good a guess as any.

6. Steve
   Comment by Steve | 12/22/08 at 6:11 am

   Dear John and John

   Thanks for the conversation. Want to apologize if the subject I brought up was a bit controversial. I did not mean for it to be but I get the sense it did. If so I am sorry for that. I should have used a theoretical example (similar to how architects and ad agencies also report billings vs revenue) as I was interested in the concept rather than the numbers or individuals.
   I respect and enjoying reading your blog.

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