Smart Tips For Finding Houses
Today, when people are choosing professions, earning is one of the motivating factors. Before making deciding to join a profession, people tend to look for information regarding incomes of such professions. Being a real estate agent is a desire for many people because they perceive real estate industry to be lucrative. In the recent times, some people have been disgruntled by the income of real estate agents because it reduced significantly but that is due to the economic recession that adversely affected the industry. So, what determines the income of a real estate agent? This particular question does not have a precision answer because the income of a real estate agent is flexible and depends on a couple of factors. This article looks at three factors that determine the income of a real estate agent.
Property location – The place where the property that the real estate agent intends to sell has an influence on the income he is likely to get from it. If the rates of properties vary with locations, it means that the incomes of real estate agents are also affected because they receive commissions on the sale of the properties. A property which is situated in a highly valued area will fetch a lot of money, and thus, the commission of the agent will be high. On the other hand, in the location where property demand is low, the property prices are also low, and thus, the real estate agent will get little money on commission.
Percentage of commission – Real estate agent receive commissions on every transaction that they facilitate but they are in the form of percentages, and thus, they commissions are not fixed. In fact, the commission rates are negotiable for every transaction depending on the nature of that trade. You will seldom find agreements where an agent commission is stated as a base figure. In determining the commission of a real estate agent, several factors are brought into consideration, and they might include the knowledge of the agent in the industry, the urgency of the transaction, amount of money realizable and reputation of the realtor. Usually, lots of things determine the commission rate of a real estate agent and they might include the experience of the agent, the urgency of the transaction and the reputation of the real estate agent. 6% is usually the commission rate in most transactions, but it can vary depending on the circumstance prevailing.
Properties sold – If a realtor sells several properties with a given period, he stands a chance of getting a high income. Therefore, the higher the number of properties sold, the higher the income of a real estate agent. It purely depends on hard work and skills to do the job if you want to make several sales.