I live in a town where the average price of a house is 500k. I have been looking in other areas of the country where the average sale of a house is 200k or less.

In my town the lowest price for a house is 300k but Ive seen houses in other states for under 100k.

My question is what would be better for an agent? In California I can sell just 1 house and in another I would have to sell 3 or 4 to get the same commission. But because houses are so expensive here I might get more transactions somewhere else.

Opinions?

I'm in one of those lower priced markets. It sounds like your question is fishing for a reason to relocate. If that is the case you have a lot more to look at than just the market of your sales profession including cost of living, climate preferences, etc.

I think it all works out to be the same, unless you for personal reasons want to move to a lower cost of living.

Considering if you do move to a new place, you probably have to start all over again. There is also an opportunity costs associated to that.

I live in California where the cost of living is high. Everyone I talked to has said to me "Who can afford to buy a house?"

Doing some research I talked to someone who works at a bank and they said that with most houses at 500k(and cost of living)you have to have an income of around $150,000!!! Thats with a 10% down!!!

But in the lower priced markets all I need is 1/3 of that!

Im just wondering if becoming an agent in a lower priced market will bring me higher transactions and more money in the long run to afford a house of my own.

Or

Does the high commissions here in California allow me to reach the goal faster or are the prices so high I wont be able to sell as much?


Im not an agent yet and will not be able to take classes until September so im trying to sort this out before I take california classes.

I think that statistic is for ppl who haven't yet bought property in California. I stand corrected though, in my case I try to target current home owners who already have equity in there property. People who are looking to move up in accomodations. Keep in mind where the jobs and coasts are especially in regards to Cali there will always be a demand.

take a look at all around COST OF LIVING! Here in Texas our min wage is like $5.50....in upstate New York...min wage is around $10 an hour....so when I can buy a home here for $200k....the same tpe of home in New York is going to be AT LEAST double if not MORE! Its all about location!

Starting over in a new area as a agent can be extremely difficult especially if you do not know anyone there. Think...."NO SOI"....you would be starting all over from scratch. Most business for new agents comes from personal SOI....

In my area of town...the median salary for someone with a college degree starting out is around $40k yearly and homes average $150-$200 for the city outskirts. Now in in other areas starting salary may be double...but I can almost assure you the avg home price will equal these out....

The best market to do business in is the market you live in, no matter where that is, you know it, you know people, your best chance for success it right there. forget the average cost of homes. The average cost in my area is 700K but we have a agent who moved in 4 years ago started fresh and she averages about 30million in sales a year now.

Off topic, but in my corner of upstate NY, $200K gets you quite a bit of house! Starter homes are only $50-70K. My husband and I thought about moving out of state, but with the amount of money we'd get for our house we'd NEVER be able to start over somewhere where the cost of living is 4x higher than here. I agree that it all works out in the end though. $2-4K commission, 10-12 times per year is what the average agent in my office brings in. I'd be happy with that.