TheRedPin.com

March 23, 2015 09:30 ET

Is Your Real Estate Agent Making $1,000 an Hour?

Over 8,000 GTA Realtors® Did in 2014

TORONTO, ONTARIO--(Marketwired - March 23, 2015) - While no one would suggest that homes sell themselves, thanks to online listings and a years-long real estate boom, Toronto realtors® continue to experience remarkable success selling a large volume of properties over shorter periods of time. To shine a light on realtor® commissions for Canadian consumers, a new study by Toronto real estate firm, TheRedPin crunched the numbers to find that a surprising 2,826 Toronto/GTA homes sold in just one day in 2014.

In total, 8,477 GTA homes sold in three days or less - for an estimated 15 hours of work; a closer look at the TheRedPin's numbers shows that in these instances, realtors® made a remarkable rate of $1000 per hour. With Ontario's minimum wage in at $11.00 per hour, these realtors® made a shocking 9090% more than personal support workers, lifeguards, and nursing assistants, all of whom earn minimum wage.

"Of course not every home is going to sell in less than three days," said Tarik Gidamy, Co-Founder and Broker of Record, TheRedPin.com. "But the fact that 8,477 did last year speaks to the need for re-evaluating realtor® commissions. We don't believe agents should be earning in one day what some people earn in a year. If anything, more money should be in the hands of consumers."

Hourly earnings* of several other, important occupations:
Prime Minister of Canada - $208 per hour
Fire Fighter - $26 per hour
Police Officer - $38 per hour
Emergency Room Physician - $124 per hour
Elementary School Principal - $59 per hour

TheRedPin.com is endeavouring to bring more reasonable commission structures to the industry and fix what they call a centuries old business model; they've introduced TheRedPin One, a re-thinking of realtor® compensation. The Company saves consumers thousands by waiving their side of the listing commission. TheRedPin One cuts out the seller's portion of the listing commission for clients who engage TheRedPin, Brokerage, to both sell and buy a home.

Study Methodology:

TheRedPin.com searched all 2014 TREB listings in Toronto, Durham, Peel, York Region and Halton Region to find homes that sold in one, two or three days. Based on an average home price of $556,000 and an estimated 15 hours of work to sell a home in three days or under, 8,477 realtors® made an average of $1000 per hour, based on an average 2.5% commission.

TheRedPin.com and the TheRedPin One program will be expanding to Vancouver, Calgary, Edmonton and Ottawa throughout 2015.

*Where hourly data available, hourly rates researched using payscale.com. Where only annual median salaries were provided, hourly rate calculated based on a 35-hour work week.

About TheRedPin:

TheRedPin connects people, data and technology. Our platform carries the largest database of active residential listings in the Greater Toronto Area, with plans to expand nationally. We are a challenger brand, with a unique business model that streamlines the real estate journey, and provides exceptional end-to-end services and benefits, not found at other traditional brokerages.

Founded in 2010, four friends recognized that the real estate industry might be the only sector not influenced by technology. The four saw this as an opportunity to reinvent the way people bought and sold properties, more specifically the way homes were searched. Today, TheRedPin is much more than that.

We are a tech startup that doesn't answer to the industry, we answer to our clients and ourselves.

Full program details available at TheRedPinOne.com

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