How Much Can a Real Estate Agent Make in Toronto?
How Much Can a Real Estate Agent Make in Toronto?
Real estate agents in Toronto make an average commission of $44,000 per sale. They typically sell two to three condominiums or detached homes each year. However, they can sell more or less per property, depending on the market and commission rate. In hot markets, like Toronto, there is a lot of competition for agents.
Average real estate agent salary in Toronto is $55,767 per year
According to the Toronto Regional Real Estate Board, there are 62,000 licensed real estate agents and brokers working in the city. In July 2021, there were 9,390 home transactions in Toronto. During the same period, the average home sold for $1,062,256. At a 5% commission split, an average real estate agent would earn $26,556 per transaction. After brokerage fees and other costs, that figure jumps to $55,767.
A real estate agent’s commission is tied to the number of transactions they complete each year. In Toronto, the average real estate agent will close about ten transactions per year. The commission varies depending on the type of real estate agents. For example, a buyer’s agent in Toronto earns an average of $28,656 in commission.
In Ontario, 82% of residential real estate agents work full-time. The remaining 18% work part-time. Of these, 36% are self-employed. The government of Canada considers job prospects for real estate agents in the province as good, with only a few regions reporting poor job growth.
Part-time real estate agents earn more than full-time agents
Most part-time real estate agents in Toronto earn more than full-time agents do, and the main reason is that they work fewer hours. In addition, they often earn referral fees. Whenever they refer a client to another agent, they get a percentage of the commission the other agent makes. This means that if a client sells a $750,000 home, a part-time agent would earn $10,500, while a full-time agent would only make $37,500.
Part-time real estate agents can also expand their sphere of influence. They constantly network to build valuable connections. But to achieve success, part-time agents need to balance their work schedule and the demands of their clients. They should set aside one day per week for in-person client interactions and dedicate the other days to working leads.
Part-time agents in Toronto can earn up to $1,100 a week, depending on their experience and skill level. Typically, these agents work fewer than 20 hours a week and do not have a full-time office. Their incomes are based on the number of transactions they make, as well as their operating costs. If they work too little in one month, they can earn no money or even lose money once they account for expenses.
Competition for real estate agents is higher in hot markets like Toronto
Competition for real estate agents is higher in hot housing markets. While there is a general slowdown in the housing market, activity in the cities surrounding Toronto has soared. In October, Toronto saw 3,514 closed sales and 7,823 new listings. The city’s SNLR (seller-to-list ratio) was 66%, favoring sellers. Although condo market activity has been declining, new listings have risen more than double year-over-year.
Competition for real estate agents is higher in hot real estate markets like Toronto because prices are high and supply is low. The number of agents in Toronto has risen to record highs, and the Toronto Real Estate Board has more than 42,000 licensed agents. In Toronto, an average detached house sells for $1 million. This means that an average real estate agent will earn $50,000 if a transaction closes. With house prices rising, agents have faced complaints about high commissions. Some agents have even taken to social media to defend their commissions or itemize their expenses.
Competition for real estate agents is high in Toronto, but it does not mean that the salary is low. In fact, the average commission rate for real estate agents in Toronto is $44,000. This means that agents sell two or three condominiums per year, and four or five detached homes a year. The amount of commission an agent earns per property depends on the commission rate and the market value of the property.
Average real estate agent commission split between buyer’s agent and seller’s agent
There’s a good reason why prices are so high in Toronto. The city has a high demand for homes and a low supply. That means that real estate agents are competing for buyers, so they’ll offer higher commissions to get your business. Toronto’s real estate market is extremely competitive, and that means that many agents compete for the same number of homes.
Real estate agents earn commissions by taking a percentage of the sale price of the home. In Toronto, this commission is typically split between the seller’s agent and the buyer’s agent. While the actual percentage varies, the average commission for a home sale is about 5%. However, the split can be negotiable – the buyer’s agent can pay as little as two per cent while the seller’s agent can take up to five percent.
The average real estate agent commission split in Toronto is 2.5%. In this example, the buyer’s agent will get $25,000 while the seller’s agent will receive two percent of the sale price. In total, the seller will receive $760,000.