Everyone wants a good salary. This is the way it is for every industry, including the estate agent. Having a good salary leads to a better life and more options. Plus, it can lead to some prestige and a rise in social status.
However, like in most industries to make a good salary as an estate agent, one has to work hard, make great sales and do a very professional job. The good thing for estate agents is that they get a salary to help them get started.
But do estate agents get both a salary and a commission at the same time? Keep reading to find out.
Not many companies do this but for estate agents, they can make both a salary and commission when they are first starting out. The different brokerage firms provide their agents with a reasonable salary level for the first 3 months and then lower that salary as the salesman gains more experience.
The type of pay they receive can be 15,000 to 25,000 GBP for the first three months, then that fee is lowered to 12,000 to 15,000 pounds over the next 3 months.
Then if they make any sales over those 6 months, the agent can also get their share of the commission paid to the brokerage house. Depending on the commission fee offered by the brokerage firm, the agent can expect around 50% of 2%.
That doesn’t work out to be a lot of money but then more sales will boost the pay of the estate agent and get them rolling as they gain confidence in their sales ability.
This is a tricky question as estate agent fees vary. There are a lot of factors involved in setting the final estate agent fee level. The price of the house, the work involved and so on. Most agents work on a no sell no fee basis which motivates the estate agent to work hard to make a sale.
Right now, the estate agent fee spread is between 0.75% and 3.5% plus VAT. The fee any agent may see will depend on the type of contract, the terms of that contract, and so on. London commands higher fees which is understandable.
The Property Ombudsman makes it mandatory that all agents or brokerage houses list all fees included in their services. But this may not always be the case.
Those vague or hidden fees may crop in the total bill from the estate agent. Then do not forget that the total fee paid to the estate agent or their employer, will be greater or higher than the contract list price. That is because the house may have sold for more or less than that recorded cost.
What you need to look out for will be those agents who offer to sell your home for less than 1%. You may not get the best service from those agents as they will put more work into selling your home than they will receive.
If those agents cut corners, then you may face problems later on. If there is work done by the agent outside of the contract, then you would face paying those fees as well as the contracted commission.
Like any other salesman, the estate agent gets paid through a commission. These commission payments can vary and needs to be clearly stated in the contract before it is signed by the seller.
The commission fee can range as one source said it was between 0.75% to 3.5% and another source stated it was between 1 and 10% with both sources saying they would be suspicious of anyone offering to sell your home for less than 1%.
Of course, the agent does not see 100% of the commission. They have to split that income with their employer. That split is decided between the agency and the agent when they are hired.
The estate agent can also earn a commission on any rental properties they found tenants for. That fee is structured differently as it is paid directly to the brokerage firm and then the brokerage firm pays the agent according to the contract.
Then there is the commission for selling commercial property. Those estate agents that move into the commercial market get better commissions as the buildings are valued higher in value than a residential home.
The seller pays the commission unless the buyer has hired the estate agent to search for a house for them. This is not a commission but a one-time payment made by the buyer to the agent.
When you are negotiating a fee with the estate agent, you need to watch for some warning signs. The agent who cuts their fee the moment you hesitate or make a counteroffer is one of the biggest red flags you can have.
That move tells you that the agent may be weak, inexperienced, or desperate for work. While the last reason is a legitimate one, be careful with them as they may do anything they can to get a sale.
Usually, those estate agents that do not budge from their fee schedule, are better trained, have better staff working for them and he or she and their staff are highly motivated and want to sell your property.
There are some hidden messages in how each level of agent negotiates as the agent who sacrifices their pay too quickly may also lower your house price too easily when a buyer baulks.
When you want an experienced brokerage house representing you, give our firm a call. We have over 10 years of experience in estate sales and know how to get the right price for your home or other property.
Our fees are fair, affordable and firm. When you want the best, you need to pay for the best. Give us a call before signing with someone else and see what we can do for you.
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