Real estate is generally seen as an uninterrupted growing market and therefore comes up as a great career option. However, before opting for it as career, people often ask the basic questions including but not limited to future scope? How much they can earn annually? How does the industry process? What is the layout? and more. Although the most asked question is about earning as no individual wish to join an industry which will not provide significant growth.
Real estate industry is dynamic, fluid and is characterized by a range of external factors which fluctuates its economy, interest rate and demographics. To make a career in real estate one needs to have a good understanding of the industry and traverse multi-aspect and constantly shifting landscape and should also have capabilities and qualities to manipulate people.
The real estate agents are hired to make sell, lease, manage and buy properties on behalf of clients. In addition, they also offer advice to the clients irrespective of buying, selling, renting or owning the property. They help the clients find the best property which will be the right fit for their requirement and property owner with the right buyer or purchaser. Unlike other job options, the real estate agent has a lot of control over how much money they make. Some real estate agents, depending on their goals or simply on the transaction process work part-time and still earn a decent amount. In general, the real estate agent gets an average of 6% of the value of the property as commission. Hence, one who chooses to work full time as a real estate agent can naturally increase their overall pay.
There are different salaries of real estate agents and below is the list of mentioned factors which influences the earning.
It is the most crucial factor of real estate business as it is the one which influences everything from the value of the property to earning of a real estate agent. Considering the earning of a real estate agent, location affects the commission rate, some areas have higher commission rate depending on their location such as nearby local market and more while there is a lower commission for properties located in the outskirt of the city.
The experience of the agent makes the major difference in pay scale as the earning completely depends on the potential of an individual. One with higher experience has better salary card when compared to fresher as the experienced person knows better strategies to crack deal and could possibly have a great customer base.
How many homes the agent sells in a year and the type of home they sell makes a major difference in their pay scale. A real estate agent who sells cheap homes for a low commission might sell 20 homes a year, but he/she won’t be making as much as an agent selling four or five luxury homes.
There is no fixed time for working hours assigned to a real estate agent as they need to spend hours looking for the brief of property the client has made. Making a presentation, photographing and documenting properties efficiently are some of the steps which reflect the professionalism of real estate agent. The better the review client provides the higher is the chances of increased growth.
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