I get this question, Annette, as my office with just over 250 agents did $1.2 billion in sales last year. We are the most productive brokerage on a per agent basis in the Charlotte metro area. But that being said, we almost never "hire" a newbie... and maybe what your numbers say to a newbie is "come back" when you've established yourself and then join a wining team.

A newbie could derive from these numbers that:

• the brokerage office has active agents,
• the brokerage office is, presumably, successful,
• on a purely numeric basis dividing the number of agents into the total income, each agent in the brokerage office is loosely (very) linked with $3,889,655.17 of that income,
• and it might indicate to them, rightly or wrongly, that if they think they can't match that nearly $4M / year total they might then wish to seek seasoning elsewhere, or if they think they can they might have unrealistic dollar signs dancing before their eyes while they calculate potential commissions and forget to account for all their own costs, fees, etc. along with their newbiness

That's about it without more information.

Maybe 10 of the agents bring in 95% the transactions, maybe 135 of the agents have zero or 1 transaction a  year, maybe costs of running the brokerage sucks up 50% of that income, maybe other brokerages in the area do 2x that in a year, or 1/2 that, and so and so forth. Who knows? 

Well, you do most likely, but we don't. :0)

There are some agents in SF Bay area who can do $100-400M a year with one license. Keep in mind that is just 100+ transactions. Top producers are all leaving left and right name franchises who want arm and a leg to keep their commission, Name sake means little if you can find own customers.  

Newbies think they can replicate the experienced agents results and richness is on its way..... Top agents will unlikely to hire newbies and have agents and lots of assistants on their team.

With that being said, the officer handed out these $$$$$$$ checks decided to be a realtor after seeing all $$$$$$$$. She knows every one and got on some team she earned 1/3 of what she was getting $$$$$$ as a coordinator last year.  She left her RE sales and returned to her old job!.  

Always value quality over quantity. Quantity withour quality is a hollow victory if a victory at all.

The most relvant number is the one in your own banking account

Impressive 

Hard to say - could be the work of very few agents while the rest contribute litte. It certainly does imply a successful office

Not much if 10 of the 145 agents did over 50% of that sold number.

I like the answer by Nina Hollander. 

I remember when I was a newbie and had BIG $$ signs in my eyes. I would look at that figure and do simple math to arrive at almost $4M average per agent. I'm in! Funny how it doesn't work that way but....

It really tells them nothing, they should be asking how much the average new agent made at their office last year.

no idea - it depends on how the newbies are doing - 

I'm the top producing agent worldwide for Huggins Homes!  Oh, did I forget to mention I'm also the only agent and we're only one office.  To me, numbers don't lie but they don't tell the whole truth, they say what you want them to say.

For example: Out here in, say Malibu, Lake Sherwood or North Ranch 564 million can be 15 transactions, maybe 20 tops.  In some areas out here, that could be 4-10 transactions.

Now as to your numbers: 564mil/145 agents means the average agent sold 3.8mil worth of property.  My question as a newbie or someone looking to join would be around the 80/20 principle.  20% of agents are doing 80% of the business (in general).  What is the ratio at your office?  What do the lowest production and highest production agents do?  What is the average sales price for the average agent versus the top producing agents?  Where would I fit in at my current level of production and do I think I could maintain that level of production when there are bigger fish in the same pond, versus me being in my own pond and able to define myself as a unique individual/company?

I'd also want to know where your team ranked overall for the city/county areas as well as another dosage of average sales prices.

well that the broker isn't reviewing all the contracts which is required by law in my state.

It looks huge to me especially when our average sales price in MLS is about $165,000 and a population of 150,000 in the city. Everything is relative.

That is a huge number.  Price point makes a big difference...

Annette Lawrence , Palm Harbor, FL 727-420-4041 - well, some numbers are to be proud of! Yes!

Annette,

I am in the same camp as Joe Pryor .  Wishing you a great weekend.  A

One can spin the numbers in many different ways.

That the office have agents that work the business.

There is upside in real estate.

5% sold $451,200,000?

Becca did a good job.

But it's a good idea to find out how many of those agents only sold 1 house per year - too many means they are bottom heavy. 

Also, that's a lot of agents for sq footage (think if they all pile into a 10x10 room) which might mean as a newbie you'd have to fight like a shark for resources.

Them's some big number Annette.  Impressive.

Doing a quick crunch of those numbers, deducting likely expenses . . . I would tell a newbie that there's money available to be made out there, but it depends on your skill level and many other factors how much of that probable approximate $60,000 net per year you will have access to. :)

When I see statistics like that, I think of the Pareto Principle.  20% of the agents are probably creating 80% of the sales volume.  I would be interested in knowing what the "median" income is as compared to average.

Would a newbie be intimidated by the high producers... or is it an environment that would nurture a newbie?  Numbers are only one part of the formula for success.

It may give sellers confidence in you, byt then again they may ask home much you sold...

Without an analysis of the underlying data building up to the number, very little.

Since the average agent, according to NAR made about $32,000 (GCI) in 2015.

If you were to equally divide your agents into your production:

Your office's average agent did $3,889,655.17 in gross sales, which is (assuming 2.5% avg. commission) $97,241.37 (GCI) AND a hell of a recruiting statement.

With proper work ethic's they would be able to expand that number.

A newbie would find it impressive and could be overwhelmed if they were hired and did not come close.