If you’re closing fewer than four deals a year in residential real estate, you’re barely covering costs. The average home sells for around $350,000. With a 5% commission split between agents, you’re left with about $8,500 before brokerage cuts. If your split is 70/30, that’s about $6,000 per deal.
Four deals a year means you’re bringing in around $24,000 before expenses. Licensing fees, marketing, fuel, association dues, and basic business costs will eat up at least $10,000 to $15,000. That’s assuming you’re not reinvesting in lead generation or professional development, which top agents do aggressively.
Four deals a year is a hobby, not a business. You need to be doing that volume monthly. That means a predictable pipeline, better follow-ups, and a niche that gives you leverage. If referrals aren’t coming in, your service isn’t memorable. If your lead flow is weak, your marketing is ineffective.
Either fix your approach or get out. Too many agents waste years trying to make something work without making the necessary changes. What’s stopping most people from scaling past four deals?