WASHINGTON – Jan. 16, 2013 – Real estate agents should calculate their hourly rate (hourly value) because it impacts their quality of life, health, ability to save and time spent with their family.

To calculate hourly value, first determine the total hours worked by multiplying hours worked per day by days worked per week by weeks worked per year. Next, divide gross yearly income by number of yearly hours to determine an hourly rate.

Unlike other professions, real estate agents cannot simply boost their hourly rate by charging more; instead, they must increase productivity to boost the per-hour income.

Agents spend about 70 percent of their time on administrative tasks worth about $15 per hour; but they can earn an average of $50 per hour through prospecting, following up on leads, making sales presentations and performing other sales functions. For this reason, it’s important that agents don’t over-invest in administration.

By using their hourly rate as a benchmark, it’s easier to set goals and better use time to dramatically increase earnings.

Source: Realty Times (01/16/13) Zeller, Dirk

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