About Commissions
COMMISSIONS - So where does it go?
Example: $500,000 property with 6 & 3% commission
| Total commission: | $18,000 |
| 50/50 split with selling REALTOR® | -$9,000 |
| Office split (80/20) | -$1,800 |
Out of the remaining $7,200 the REALTOR® pays tax plus expenses.
Expenses:
| Fees: | Office fees, VREB, MLS, BCREA, CREA |
| Advertising: | Real Estate Victoria, Times-Colonist, Feature Sheets, Photos, signs |
| Auto: | Insurance, Maintenance, Gas |
| Equipment: | Lock boxes, pager, computer programs |
| Supplies: | Photocopies, forms, office supplies |
| Postage: | Mail outs, Postal Walks |
| Misc: | Telephone, Fax, etc |
| Insurance: | Errors and omissions |
Net Amount to the REALTOR®: $1,500 - $2,500
It is important to consider that liability for each transaction that carries a REALTOR®'s name is a minimum of $2000 (the deductible for Errors and Omissions Insurance)
