Did I just make $60,000 profit to my real estate agent?

Samsung MaMaKramba
May 14 12 Comments

I introduced my real estate agent to my friend who was looking for a house. He liked the first house he saw in San Jose and they closed on the house within a month of my introduction. The house was sold for $2M. Did I just make $60,000 to the real estate agent? It seems very easy money.

How much do real estate agents make realistically? By this rate, even if the agent only sales 10 homes a year, he will be making a lot more than I will ever make with my engineering and management degrees.

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TOP 12 Comments
  • Yes. Real estate agents live and die by referrals.

    They make a killing in up markets and get slaughtered when the market collapses. Easier in markets like the Bay where prices are stable to exploding.
    May 142
    • Samsung MaMaKramba
      OP
      I think I had a very good role in making the referral and earning him money lol, I am jealous that I don't get any part of the action. Maybe I should negotiate a deal with him to charge 0.5% or more for each successful referral.
      May 14
    • New / DatatVMh86
      ppl usually get referral bonus
      May 14
  • Cisco alcohol
    Its 2.5% by buyers agent
    Sellers agent is negotiable by seller
    May 141
    • Intel VANDERPUMP
      This. In most CA major markets, buy/sell over 1m usually drops to 2.5-2%... but yes your referral made the guy $40-60k and he should probably drop you a few nickles as a referral fee or at least a high end gift basket... if not that is poor taste IMO...
      May 14
  • Microsoft / MgmtDunph
    Depends on if they offered a refund to the buyer (usually 1-2%)
    May 140
  • Monster unholy!
    Isn't it quite less, though, after taxes? Aren't agents taxed like freelancers?
    May 141
    • New / Other
      DuQvV7y

      NewOther

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      Your TC is lower after taxes, but when asked do you use the pre-tax or post-tax number?
      May 14
  • Amazon / EngDeepObsess
    If your referral keeps wasting the agent's time and have the agent pay for meals without ever closing... Will you pay the agent back?
    May 140
  • Brokerage, Title, Closing costs, taxes, etc. take a chunky bite out of profits. There are also a ton of agents, so yeah you’ll see super agents who run brokerages, but the majority are working to make 5-10 sales a year for the equivalent of a below average salary.
    May 140
  • Apple net worth
    Now you know who is the truly rich here. Top agents like Dave make a huge killing
    May 140
  • Facebook public2
    They probably made more than 60 assuming your friend used the agents network. Lots of competition though and support staff to support. Top agents make millions a year, most fail though.
    May 140

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