The commission of realtors is one of the main questions for those who are thinking of taking their first steps in the real estate market. After all, working as a self-employed professional in this sector implies not having a guaranteed monthly salary.
Even so, when a sale is made, the realtors’ commission can be quite considerable. It’s possible that it makes up for all the previous months the professionals missed.
Are you curious? So, keep following this text and clear all your doubts about the commission of realtors:
The values for each modality
There are numerous variables that can influence the amount of your commission. For example, urban or industrial properties guarantee between 6% and 8% of the total sale value. In turn, rural properties can earn the realtor a sales commission of between 6% and 10%.
In addition, practical issues and agreement between the real estate agent and the broker can also influence. Sometimes, the professional can give up a higher commission in exchange for benefits such as fuel, subsistence allowance or means of transportation. When the comparison is between detached properties and launches, the former brings better earnings conditions.
Partnership: how to split fees correctly
In such a competitive market, it is common to find partner realtors. In this case, the division of fees needs to be established in writing to avoid conflicts in the future. It’s a safety issue for those involved.
In principle, the commission should be divided equally, but the parties can establish different divisions beforehand. They can be based on the work each party must do or the expenses that must be taken into account.
Who pays the brokerage fee?
When looking for a property, the buyer does not know who the realtor will be. Whoever hires this professional is the owner of the property, who is also responsible for his commission, as a result.
There are cases where the commission may be charged to the buyer. This happens when he hires a broker to find the property that meets his needs.
How to guarantee realtors’ commission?
One practice can put real estate agents’ commission earnings at risk. Suddenly, after the broker starts the due process of intermediation, the buyer ends up giving up on the purchase, without expressing a reasonable reason. Then, the brokerage professional discovers, sometime later, that the sale was made directly with the owner, dispensing with the payment of commission.
This kind of practice needs to be avoided. For this, the broker must have a proposal established in writing and signed by both the buyer and the seller. Brokerage is regulated by law and all necessary legal measures must be used so that there is also due recognition and respect for the profession.
It is also important to ask the buyer to sign the property visit declaration as proof that you were responsible for taking him to the property. It is a document with legal validity. On the vile Imo platform, you can quickly generate a model of the property visit declaration. Just edit the property address and customer name.
What to do with the commission received?
If there is no good financial planning for a realtor, the commission received may end sooner than expected. It is a very common risk for some professionals without a fixed income.
Therefore, it is not enough to guarantee the income for one month, it is necessary to predict whether the following month should be as good or not. Here, consulting your Real Estate CRM can help you to find out how the status of each negotiation is going.
Even so, you can (and should) set aside part of the commission for future expenses of the trade. It would be like “working capital”. On the other hand, you can also make a long-term application. But only if you are sure that the situation is calm and that it will not be necessary to redeem the money before the deadline.
Finally, don’t forget about the taxes generated on your earnings. Many end up leaving it aside. A risk that can generate higher taxes than necessary.
It is necessary to pay attention to all these details of the commission of realtors to ensure their survival in the market. Good sales!