To be successful in your career as a realtor, you need to know how the real estate market works. As in any other job, the start can be a little complicated, but dedication and knowledge are enough to achieve excellence – in addition to a lot of practice in the area, of course!
It turns out that many people still have doubts related to professional gains, especially those who do not work with a real estate company. Not everyone is used to working as a freelancer, is not it? So that you know how to do the calculation and get the best profit on your sales, we made this post, which answers the main questions about the real estate commission!
Need to know a little more about the brokerage commission and how it works? Move on!
Is the broker commission always 6%?
Park view city bet you have always heard that the commission for realtors is 6%. If, on the one hand, this information is correct, on the other, there are some caveats. In general, according to CRECI, the average commission is 6%, but it can vary according to the type of property being negotiated.
According to the CRECI-SP table, for the sale of urban or industrial properties, the commission can vary between 6% and 8%. As for rural properties, it starts at 8% and can reach up to 10% of the sale value.
There are also judicial sales, which take place by determination of a court, regardless of the will of the owner of the property. In this case, the commission is 5%. As for rents, generally, the commission charged is equivalent to the first rental received from the property or, in the case of a seasonal rental, the amount is equivalent to 30% of the total value.
How much commission will I get if I work at a real estate firm?
There are brokers who are self-employed and therefore receive full commission. However, those who have a work contract signed by a real estate company have the advantage of enjoying the company’s real estate and client portfolio and receiving a fixed monthly salary, in addition to part of the commission.
Generally, the broker is responsible for 40% of the commission. That is, if the property was sold for R $ 200 thousand, the 6% commission will be R $ 12 thousand and the broker will receive 40% of this value, which is equal to R $ 4.8 thousand.
Is it better to be a freelance broker or work in real estate?
Many professionals have doubts when starting a career as a freelance realtor or looking for a real estate agent to join. Both options are interesting and safe, but those who affiliate with a real estate establishment have greater commitments and responsibilities.
In that case, the earnings may be higher and the broker will have credit because of the fixed point. The percentage of fees is the same for both professionals and the results depend on your effort and dedication. Brokers are independent to partner with real estate agents, but they do not need to have an employment relationship to perform the profession and achieve their goals.
The autonomous broker has easier mobility, in addition to knowing the documents better and preparing administrative papers easily. He is more specialized and is dedicated specifically to a type of customer or region. His knowledge is greater in relation to commercial real estate.
Generally, they receive excellent job offers after consolidating in the profession. However, they hardly accept it, since their achievements are the result of their own efforts to overcome them. Self-employed professionals consolidate a practice that leads them to succeed and be financially independent.
Already a broker affiliated with a real estate company performs diversified tasks and with an extended operating range. He does not know the specific details of each neighborhood or the location of pharmacies, supermarkets and schools. As the real estate agents work with different types of properties, the professional will not be able to focus on a segment.
Brokers can partner with real estate agents to conduct business. Consequently, they will have to attend the shifts and the sales stand to be able to negotiate the properties. The real estate company will offer credibility as a company, a portfolio of projects, administrative and legal resources.
Does the pickup broker also earn commission?
One of the real estate challenges is to keep your property catalog up to date. For this reason, these companies rely on the so-called “pickup brokers” or “agents”, which have the function of being attentive to the real estate opportunities that the city offers, identifying when a person is willing to dispose of a property.
Not all real estate agents work with this type of broker and, obviously, the professional who sells can also act as a pickup. It turns out that when a property captured by a broker is sold, that professional receives a portion of the sales commission. This amount is not fixed, varying from company to company, with an average value of 10%.
Is there any difference between launch and secondary market?
Regarding the brokerage commission, yes. When the construction company prepares to sell its properties, they have a different cost than the products on the secondary market, that is, used properties.
There is, for example, no need for an agent broker. In some cases, there is not even the presence of a partner real estate company, since many construction companies assume responsibility for sales.
If there is a partnership with a real estate company, the broker will share with him his commission, which will be around 30%, of the 4% paid for the sale. In addition, some construction companies work with awards. This means that the broker will receive a bonus or a premium if he is able to sell a certain number of units.
How is the broker commission calculated?
As we have seen, the calculation of the commission of brokers is tabulated by the regional CRECI of each state. To calculate it, just apply the range described in the table, depending on the type of property negotiated. The percentages for the calculation basis are as follows:
- commission for rural properties: 6 to 10% for the broker;
- commission for urban properties: 6 to 8% for the broker;
- commission for industrial properties: 6 to 8% for the broker;
- judicial sale commission: 5% to the broker;
- sales commission for real estate projects: 4 to 6% for the broker.
It is important to note that these tabulated values are used only as a reference, that is, they may vary more or less, according to the real estate company or developer in question.
The ideal is to be a specialist broker and pay attention to these fluctuations, demonstrating extensive knowledge in the sector to make a good deal with your contractor. This is the best way to protect your commission.
Who is responsible for paying the commission?
The commission is paid by the owner of the property with his authorization – that is, it is necessary to make it clear that its value will be included in the sale price even before announcing the property.
Thus, when pricing a property, you must take the commission amount into account. Of course, if the value of a property is far above the market, it will be stranded. Therefore, common sense when evaluating and setting a price is essential. Nothing to stick to the value of the commission!
Do I earn any commission if one of the parties withdraws?
Anyone who has worked in the market for some time knows that, at one time or another, the broker will have to deal with a deal that was almost closed, but it was not completed because one of the parties gave up for some reason. In such cases, unless the parties have already signed a document, the broker is not entitled to the commission, even with all the work performed.
What can I do to prevent and protect my commission?
As we said, the commission must be defined with the owner of the property before the sale. Therefore, in order to avoid any disagreements, it is important to record and document all conversations and agreements made between you.
Nowadays, this is not difficult. WhatsApp conversations are recorded on the cell phone, and you can use this and other tools to make some points very clear to your customer. However, it is always a good idea to send emails summarizing everything that has been agreed, as they are a more reliable source for verifying trades.
Is working with commission worthwhile?
If you want to act as a self-employed professional, you need to accept the characteristics of this market. The brokerage commission can be seen as something that will bring instability, as the professional will no longer have the security of fixed salary every month.
However, this same commission can be interpreted as the best way to earn more money and control your own financial life, since the chance of receiving much more than the average salary paid to your category will depend on the professional and his sales capacity.
In fact, having a fixed salary is not synonymous with having economic stability. In fact, what will guarantee a broker’s good financial results is the way he deals with his own equity.
What is the difference between an autonomous broker and an associate?
As we pointed out at the beginning of the post, when the broker works in association with a real estate company, his commission will be divided with the establishment. Usually, the share of brokers is around 30% to 40% of the total commission received for the sale. However, this can be discussed with the real estate agency.
This is the big difference between a freelance broker and an associate, as freelancers will not need to share commissions. On the other hand, it is necessary to consider that, in the autonomous career, all expenses related to trading (telephones, transportation, travel, etc.) will be borne by the broker.
In the case of the associate broker, the cost of trading is borne by the company. Therefore, the commission needs to be agreed in advance with the brokers, considering these expenses.
It is up to the professional to assess which of the two situations is most advantageous according to his current moment. For many people, it is worth having the commission reduced in exchange for the facilities offered by the partnership with the real estate company.
In addition, the main tip for obtaining a good income working in a commissioned way is not to worry only with the commission. After all, the realtor sells the dream of homeownership and real estate investment. It is necessary to value these issues so that the buyer does not think that the professional only want to hit a goal, and does not help him to buy a house, which can lead him to lose confidence and, consequently, harm the sale.
How to adapt to a broker’s commission fluctuations?
As we have seen, the sales commission is not guaranteed every month, like a fixed salary – hence the importance for the broker to learn to adapt to market fluctuations. One month can be excellent and the other not so good.
This is not a problem, as long as there is always a profitable average of the values. Study your budget well and define what an ideal salary target would be for you.
In addition to worrying about meeting this goal, anyone who works with real estate brokerage needs to be even more effective when it comes to financially organizing. As the real estate market is always fluctuating, it is necessary to plan your income well to have a reserve at times that are not so favorable for sale.
The good news is that these moments are rare, especially considering that the need for housing is something constant. So, it will not be difficult to prepare. As you could see during the reading, this market gives the professional the chance to obtain great returns.
So, if you are starting your career as a broker, organize your financial life, cut unnecessary expenses and start studying the nuances of the real estate market and the procedures of the broker commission to stand out.
How can a realtor act to sell more?
Financial planning and professional success depend on the sale of real estate. Therefore, professionals need to achieve goals and be innovative entrepreneurs. Positive results are part of the goals of all professionals in this field. Here are some important tips for the broker to be successful!
Understand the market
To be able to increase the number of sales, brokers must understand the subjects of the real estate market and the country’s economy. Therefore, they need to make investments to increase their knowledge, in addition to always being attentive to the news.
Studying about your industry is a way to become an excellent professional and to always keep up to date on the sector. There are contents that address economics, communication, property sales, etc. Specific themes help to get a sense of the financial and real estate market.
Get to know the properties
The broker needs to know the properties he is selling before taking his clients to the location. At the very least, a visit must be carried out in person to later present the building to the potential buyer. Demonstrating that you know the property, it is easier to win the trust of the customer.
If the buyer has doubts and the broker does not know how to respond, the situation will cause discomfort and undermine credibility. The professional must know the size of the properties, the number of parking spaces, the number of rooms and other relevant details, such as the value of the condominium.
Use sales techniques
The techniques delight customers, so they need to be applied to win them over. The closing of a purchase and sale contract depends not only on the financial conditions of the buyers and their need but also on the excellent service they receive.
Therefore, the broker must be proactive and make himself available to assist with issues related to property sales. It is useless to ask the customer to return the contact and wait: it is necessary to have an initiative for dialogue and be very positive to close deals.
Did you understand how the real estate commission works? Currently, brokers are also investing in online sales strategies, as most people already have access to the Internet and are connected. Taking advantage of the constant advancement of technology and making use of digital news can make a difference for professionals in this area!
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