Real Estate Agents Getting The Shaft?
You could have dealt with a lot of estate agents but did you wonder how your real estate agent gets paid? You certainly know of that all of the talk about commission, pc.s, charges, closing costs etc . Are broken down at closing. what are his exact earnings? The truth is that you aren't the person that is paying your agent a commission.
It is interesting to grasp that the the guy who slogged so tough to trade or find your house isn't getting as much as you suspect.
The fact is that the estate agent you are interacting with either works for a brokerage house or an established licensed broker. Whether it is purchasing or selling the agent brings a customer to the table, and a deal is signed between the brokerage house and the client.
When the consultation is materialized into a sale, the broker gets an average of 6% of the sale price as a commission. The commission is then divided up between the houses, and after the brokers decide how much to pass on to the agent who really did the all leg work. Various factors are taken into consideration while finalizing the amount. The total experience he has in this field or in that market, the time the agent has spent with the company and the level of his productiveness decide the amount he is getting.
As an example a green representative may only get 30 % of the cut where as a veteran who brings in heaps of business, could get half or even more of the proceeds.
There's another strategy too. Here the agent can get the whole commission provided he pays charges each month to the brokerage house. You can consider this a a costs or a rent for using the office and using the name of the organization to back his name.
Some representatives find this deal extraordinarily advantageous because regardless of how much they make at the end of the month the amount they should pay remains fixed. But the members who are new to the business may not have a good client list and thus may not get the advantage of word-of-mouth. For such brand spanking new agents, the standard split is more preferable as they may not be able enough to make that fixed payment a month.
Also there are some factors that gobble the ultimate profit manufactured by the brokerage house and the representative. In case the brokerage house is a franchise, after every commission there's a charge fee that must be paid.
And then a certain percentage that comes out of the commission which is often paid by the seller at closing. However, this is can be negotiable depending on the sort of market. Another point open to debate is the way in which the commission can be divided. So, as you can see, it isn't just the 6 % but a load more things that count. Your agent gets the cash only after everyone else gets the money. - 23212
It is interesting to grasp that the the guy who slogged so tough to trade or find your house isn't getting as much as you suspect.
The fact is that the estate agent you are interacting with either works for a brokerage house or an established licensed broker. Whether it is purchasing or selling the agent brings a customer to the table, and a deal is signed between the brokerage house and the client.
When the consultation is materialized into a sale, the broker gets an average of 6% of the sale price as a commission. The commission is then divided up between the houses, and after the brokers decide how much to pass on to the agent who really did the all leg work. Various factors are taken into consideration while finalizing the amount. The total experience he has in this field or in that market, the time the agent has spent with the company and the level of his productiveness decide the amount he is getting.
As an example a green representative may only get 30 % of the cut where as a veteran who brings in heaps of business, could get half or even more of the proceeds.
There's another strategy too. Here the agent can get the whole commission provided he pays charges each month to the brokerage house. You can consider this a a costs or a rent for using the office and using the name of the organization to back his name.
Some representatives find this deal extraordinarily advantageous because regardless of how much they make at the end of the month the amount they should pay remains fixed. But the members who are new to the business may not have a good client list and thus may not get the advantage of word-of-mouth. For such brand spanking new agents, the standard split is more preferable as they may not be able enough to make that fixed payment a month.
Also there are some factors that gobble the ultimate profit manufactured by the brokerage house and the representative. In case the brokerage house is a franchise, after every commission there's a charge fee that must be paid.
And then a certain percentage that comes out of the commission which is often paid by the seller at closing. However, this is can be negotiable depending on the sort of market. Another point open to debate is the way in which the commission can be divided. So, as you can see, it isn't just the 6 % but a load more things that count. Your agent gets the cash only after everyone else gets the money. - 23212
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Finding the best information about how a real estate agent makes their money can be overwhelming at times. One of the best places we found online to get the straight facts is real estate agent wildwood nj
posted by X - Men @ 1:04 AM
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