Real Estate Income vs. a Good/Bad Economy
Hypothesis
I believe that in a good economy that real estate agents make more money. My reason behind this is that in a good economy more people have more money and wealth which means they are willing to spend more on a big house. Meaning the value of the houses will go up causing the real estate agents to make more money. Real estate agents make a certain percent of the total costs of the house they sell. If they sell a house for cheap they are not going to make much money. For example if a house is $100 and the real estate agent makes ten percent of the total amount for the house, they will only make $10.
Conclusion
My uncle that lives in Madera makes over $100,000 a year on average. During a good year he says he can make up to $250,000 selling houses. He owns a real estate company in Madera him and his wife are both very wealthy people. His wife just recently joined him in his company and they make on average $350,000 a year. My uncle Frank says, “The real estate business is like a roller coaster so when we can we like to save a lot of money. You never know what the next year is going to bring, so we have to be prepared for the worst.” So do people in our society make more money in a good economy? Yes!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! While during this project I learned to think outside the box and find a fun and creative way to prove my point. I look forward to doing similar projects to this one in the future.