Average salary of real estate agents (brokers) in Quebec

The average price of properties in Quebec amounted to $ 236,500, according to statistics from the Canadian Real Estate Association (CREA) in January 2010. Assuming an average compensation rate of about 4.5%, we find, by counting the number of transactions per year divided by the number of registered agents, the average annual salary of a broker would be around $ 23,412 (see calculation below).

• 79,000 transactions divided by 18,000 workers = 4.4 transactions per agent

• $ 236,500 (average) x 4.5% = $ 10,642 divided by 2 (between the Selling Broker and the listing broker) = $ 5,231

• $ 5,231 x 4.4 transactions / year = 23 $ 412.40 (* Statistics from the ACAIQ and the Federation of Real Estate Quebec)

With the current basis, a payment on results rather than the act, like most professions, real estate broker is a poor relation especially when you realize that this is one of the leading experts involved in one of the most important in the life of an individual.

This is especially true that these statistics confirm more than ever the finding of surplus workers in Quebec. The 2003 study showed that there were indeed 54.3% too many agents at the time, while there were only 10,560 registered agents in ACAIQ. The figures show that the number of transactions in Quebec has not increased as explosive as the number of agents (70%, or 10 560-18 000).

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The real estate agents (brokers) are they paid too much?

Posted May 13, 2007

Marc Tison, The Press

The issue was briefly raised at the recent congress of the Association of Brokers and agents of Quebec in late April.

Yvon Poirier, experienced real estate agent and president of Coalition of independent real estate brokers in Quebec, wants to return to the subject to “lance the boil rather than treat the subject superficially.

He easily recognized in the context of soaring real estate prices, “a commission rate ranging between 6% and 7 may seem outrageous in the eyes of many.”

But he argues that market pressures have lowered the rate, now approaching more than 5%.

Mr. Poirier also recalls that the officer must forward time and money in the hope that the sale of the house of his client will repay its investment.

If no sale goes ahead, these many hours and few thousand dollars in advertising evaporate into the mirage estate.

“Also? and it is careful to point out publicly?, infidelity of some consumers, sellers or buyers, has also cost dearly estate agents who are often cheated by the consumer than the opposite, “he writes.

The Quebec real estate market is shared? unequally? between more than 16,000 real estate agents, many of whom live in harsh disappointments.

“The myth maintained by franchisors to the effect that makes money like water in real estate to terminate as soon as possible,” explains Yvon Poirier.

In fact, he argues, despite the recent market turmoil, officials fail to conclude that on average four to five transactions per year. Assuming shared equally with the other agent involved in the transaction, the business volume provides an annual income of $ 35,000, which it must deduct office expenses, advertising and others, he believes.

“It is far from the Eldorado promised by the franchisor, laments Mr. Poirier. In the circumstances, we can easily understand that these officers have said in one breath that they were not paid too much for their services. In fact all these elements, franchisors, well represented at this meeting, have maintained a total indifference. ”

They are more interested in recruiting new officers who will pay their fees, he says.

“Any professional service quality has its price,” says Poirier. Knowing that the property is sometimes critical of the family patrimony, it is important to protect. It is the role of the professional real estate agent. ”

The owner’s salary

Each professional was striving.

The lawyer Jocelyn Langlois for his part made some calculations to estimate the hourly wage that would clear the owner decides to sell his house without an agent.

In his example, of course, that owner does not skimp on the expert consultation of the notarial gent. With this support and that of other specialists? assessor, for example?, it may partially compensate the deficit of knowledge.

Let us follow the reasoning of Mr. Lee.

First week

“You are informed that the average time to sell your home is about 90 days, but you decide that you need rather humbly considering a period of 120 days to complete the sale of your house,” he states input.

You devote 20 hours to prepare your case. You gather the documents and photos of your property and you take action. You prepare and photocopy sheets of information for visitors ($ 50), are purchasing a sign of good taste ($ 150), and register for $ 500, your property on a dedicated website .

You determine the market value of your property by a licensed appraiser, priced at $ 550. Finally, of course, Mr. Lee states that you invest $ 850 in valuable advice and support of a notary.

“The assessor’s report, written and argued, proves to $ 250,000 value of your property and you decide, like any good salesman, to announce a price of $ 275,000,” he says.

Fifteen weeks

During each of the fifteen weeks, you continue your quest to fail without a buyer, due to an investment of six hours per week.

You receive phone calls, send information by fax and email, and organize open houses on Sunday afternoon. These have been announced in the Saturday edition of a newspaper known, and costs $ 60 per week, calculated Langlois.

17th and 18th weeks

Your efforts have their just reward in the 17th week of your event, then you get? in joy? an offer to purchase.

With the help of a counselor? “In this case, your lawyer,” says our lawyer?, Whose fees totaled $ 300, you write a cons-offer. Fortunately, it is specifically negotiated and agreed to the appraised value for your property is $ 250,000.

Your location certificate is too old, you must produce a new, a surveyor prepares for $ 700.

You spent 20 hours in these processes.

The fees and expenses you have incurred total $ 4,000. The board of a real estate agent (6%) and taxes that apply would have amounted to $ 17,092. If we deduct the fees and expenses you incurred, you save a little over $ 13,000 for 130 hours.

“An hourly rate not too trite to $ 100 per hour … non-taxable, “says Langlois. “In short, well advised and assisted, it is never better served than by yourself.”

Of course, we must be prepared to put time. It arises in this calculation the assumption WE SOLD and we get to his house the same price as if we were advised by an officer. And finally it is assumed that the commission would be 6%? some agents ask for less.

But the fact remains that the principle is reminiscent …