Ottawa Real Estate Agent Salary - How Much do Ottawa Realtors Make?

This article is written to provide information to those who may be interested in becoming a Realtor and are curious to know what the average Ottawa Real Estate Agent Salary is! These figures are sometimes rounded up and provide a general idea of what a yearly salary (or more precisely, commission income) would be for an Ottawa Realtor.

Ottawa is a City of about 1 million people, at the end of 2019 there was a total of 3,210 agents that we're part of the Ottawa Real Estate Board (OREB). These real estate agents belong to the many real estate brokerages that exist in Ottawa such as ours, EXIT Realty Matrix. Members pay a monthly fee to the board for access to the MLS system where we advertise our client's properties for sale. OREB is also in charge of preparing education courses for Realtors and managing the Ottawa MLS.

In 2019, Ottawa real estate agents sold a total of 18,622 properties through the Ottawa Real Estate Board compared with 17,467 in 2018. This means that on average, a Realtor in Ottawa sells approximately 5.8 properties per year.

With the average property in Ottawa costing $486,590 at the end of 2019, it would mean an average agent would be selling approximately 2.8 million dollars of real estate per year.

Although Ottawa Realtors work for a specific brokerage, all Realtors are independent contractors and can charge a commission of their liking to the clients they work with. It is not uncommon for a real estate brokerage to make a commission of 2 or 2.5% of the purchase price when one of their client purchases a property. The commission when selling could be similar.

If an average agent is selling approximately 2.8 million dollars of real estate per year than the commission made by his or her brokerage could be $56,000 (if making 2%) or $70,000 (if making 2.5%). This is, of course, a gross commission and from this amount, the Ottawa real estate agent will pay his fee or split with his brokerage. These fees or split/percentages vary from brokerage to brokerage but a 70/30 commission split is quite popular. Some brokerage will charge a monthly fee regardless of the number of homes or condos an agent sells, others will charge a transaction fee once a sale occurs. Brokerages like EXIT Realty Matrix only charge a commission split when a deal occurs.

This means an agent that does around 5.8 sales per year, brings in $56,000 to his brokerage will generally net $39,200 if his sales paid 2% or $49,000 if his sales paid closer to 2.5% commission.

Members of the Ottawa Real Estate Board who use the MLS to advertise their client's properties will pay a monthly fee to the Ottawa Board. In 2019, these fees totalled $2,144.90. Realtors must also pay for Insurance which was $465 for 2019.

While the average real estate agent in Ottawa can make $44,100 in gross income he will have to pay the $2,609 of the mandatory real estate board and insurance fees. Bringing his take-home pay before taxes to $41,491.

For some Realtors, their brokerage is where they show up daily to work and meet with clients. Brokerages are also involved in the continuing education of their representatives as their success is directly tied to the success of their agents.

Brokerages are generally not responsible for the cost of business cards, signage, cellphone, internet access if you work from home, vehicle expenses, professional photography, client closing gifts, client appreciation parties, etc. One must factor in these expenses as they are often a necessity in the competitive, high tech and fast-paced world we currently live in.

Of course, results will vary from person to person based on knowledge of the real estate market, negotiations and sometimes your circle of family and friends in the area you will be working in. Someone could also have more success if he or she knows a lot of people. One thing is clear if you are willing to learn, work hard the first few years, continuously educate yourself about the market and trends, you can succeed in this business. At the end of the day, people want to do business with people they know, like and trust.

If you or someone you know is thinking of becoming a Realtor in Ottawa please reach out to me, Roch St-Georges 613-889-7732 (call or text). I'd love to grab a coffee and discuss some of your business and career goals. We are always looking for quality people to work with and to service the hundreds of leads that come into the office every year.

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