Yes, just like hot real estate has caused a surge in property value and is known as a seller’s market, so too goes the market for real estate assistants and/or other real estate employees. They are as scarce as a cheap homes in Toronto and if you know that market at all, you know exactly what I mean!
Technically, a seller’s market in recruitment is known as a candidate’s market. After all, we’re talking about people, not property. But whatever you call it, the state of the market is leaving realtors gasping for air.
What’s the number one reason realtors are gasping for air?
The cause for gasping is the salary that a real estate assistant can command. Gone are the days where you could hire someone for $15/hr, and be considered a high roller for paying $20/hr. The truth is that high quality candidates, just like real estate, are few and far between in the current market.
Entry level positions, like Front Desk Administrators, are similar to first homes. First time homebuyers are often aware of the limitations of their budgets and so temper their list of needs accordingly. Compromise is the order of the day! However, when a person is ready for their next home, the list of requirements increases. The same is true for realtors who are looking for more than an entry level employee. The number of available candidates decreases in proportion to the increasing requirements!
For a top performing realtor in the luxury market, looking for an assistant with excellent presentation skills, good articulation, intelligence, a vehicle, an OREA license, and experience in luxury real estate, is even more difficult. The law of supply and demand dictates that the salary for such an individual will rise according to demand. The more requirements listed that need to exist in one individual, the rarer the pearl and therefore the higher the salary that candidate is likely to want.
So how much are Real Estate Assistants REALLY making in the GTA?
That depends on who they work for and what they bring to the table. On the low end are candidates in the $45,000-$50,000 range for an entry level candidate with one year of experience. This person will need training, ongoing coaching and work/life experience before being able to hit the ground running.
On the top end, salaries are climbing to $150,000 and more. Before you pass out, you need to know that most Real Estate Assistants who are grossing over $100,000 are typically put on a high base, and then given bonuses/commission on the number of deals the team closes. The candidates in that price range are also typically not serving one independent agent, but a team of two or more realtors.
It also makes a huge difference whether or not that realtor is a “standard family home” realtor or “luxury home” realtor. In the GTA, that’s the difference between average home prices of $1 million versus $3+ million dollars, for luxury homes. Sadly, $1 million homes are no longer considered luxury homes. They are your standard 4 or 5 bedroom subdivision type homes or midtown teardowns in the gentrified communities of the city.
The kind of deals the realtor is closing will dictate the kind of assistance they need and the requirements that person will need to have. It’s all a matter of degree, but in fairness, an agent who is regularly closing luxury home deals is in a position to afford the assistant of their dreams! So it all shakes out for candidates and realtors alike.
Before posting a job for a real estate assistant with a starting salary of $40,000, give AGENTC a call to see if it’s a candidate’s market or an employer’s / realtor’s market. We can spare you the headache, embarrassment and time you will waste reading 200 resumes of unqualified candidates who don’t have the skills, experience or personality to run fast with a realtor.
