black friday

“Bonus Round” Near Agent’s Fiscal Year-End

With the blitzkreig of ads screaming “Deals! Deals! Deals!,” it’s easy to forget that the “black” in “Black Friday” originally referred to retailers’ bottom line, not consumers’.

So, at least according to one popular explanation, “Black Friday” was when notoriously low-margin retailers became profitable — “went into the black” — for the year.

Is there something analogous for Realtors?

Sort of.

Christmas In June

Depending on realtors’ commission-splitting arrangement with their broker, deals near the end of their fiscal year can be considerably more lucrative than ones at the beginning (some Realtors instead pay their broker a flat, monthly fee).

That’s because the split percentage typically rises as the Realtor’s annual sales volume increases.

So, near the end of an especially good year, the Realtor can net as much as 90% of the list-side or payout commission, vs. closer to 50% at the beginning.

Before you ask your Realtor for a discount, though, bear in mind that the average Realtor nationally makes something like $35k a year — and ones who make more typically not only are very skilled, but have to work very long hours to accomplish that (ask my family).

P.S.:  Since my fiscal year with Edina Realty starts in July, “Christmas” for the Kaplan household — at least in a good year — typically falls in May – June.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

Leave a Reply