As one of the top producing agents in Brooklyn, New York, I have seen so many people come and go in real estate that I just stop counting.
On the more serious side the real estate profession is for people that has a love for people and tons of energy. Someone that's not scared of working with all sorts of people, has the physical and mental ability to work hard, motivated, quick to learn, organized, and a team player. Now granted some of the characteristics above can be learned, but if you already possess most of these qualities then you are on your way.
The world of real estate is not for people that are lazy, can't think on their feet, low self esteem, unhappy or have no business savvy. Real estate agents deal with transactions that involve large sums of money, legal issues and clients that expect real quality service.
It's a sales business where your own efforts will determine your financial outcome.
For instance, over the years I have witnessed new agents come in well dressed and talking big stuff about how they're gonna make tons of cash. But, when they discover what is really involved from trying to get a house to sell, then sell it, and do what it takes to close, they begin to complain and have doubts. The fact is, you can reap the rewards of real estate but you have to be persistent and consistent in order to earn continuous income.
I feel that to one of the best in real estate is to be in love with the business. There's alot of ups and downs in real estate on a daily basis and you have to love the business to keep going day after day.
**What Types of People Become Real Estate Agents?**
1. Retirees - Real estate is great for people who are retired and would like to add to their yearly income by selling a few properties. Also, it's a great way to get out, talk to people, utilize or increase your business skills and get daily exercise.
2. College Students- Many college students join the real estate industry part time and they are able to build a large clientel early if they plan to stay in the business. Also college students or graduates are great because they have tons of energy and they know how to use technology to their advantage.
3. Unemployed - While I'm writing this blog the unemployment rate is up and many people around the globe have lost their jobs. So where do they turn? Many of those people have turned to real estate to earn income. Some people that lost their jobs who have great business skills can easily apply those skills to real estate.
4. Single Moms or Dads - Real estate is great for a mom or dad that have kids and no one there to help because you have a flexible schedule in this business. You can leave early or take a day off whenever you like because you are an independent contractor and you can adjust your schedule.
5. Tired of Corporate America - Many people who work in highly stressful jobs want to get off the strict clock schedule of sitting behind the desk and get back their lives. People who are business professionals, lawyers, architechts, accountants, teachers and more have left their careers to come into the real estaet industry.
6. Part Timers - Some people may want to keep their current jobs and add real estate for extra income part time.
The best part of real estate is that it is a learning process and if you have the will and most of all the passion for the business you will succeed.
**Comments: Do you think you have what it takes to be a great real estate agent?
Showing posts with label agent. Show all posts
Showing posts with label agent. Show all posts
Friday, August 6, 2010
How Much Do Real Estate Agents Make
Real estate is a great way to make money and this article will show you how real estate agents earn an income and how much can be made. Even in a tough economic times, real estate is still a top money maker. Yes, it may be tougher to make the sale in this economy but it can definitely get done.
How Do Real Estate Agents Get Paid?
Now just so you know, real estate is a commissioned based profession. People that have answered ads in the newspaper have walked into my broker's office and asked how much do they get paid and when. There are no weekly, bi weekly or monthly paychecks. You get paid on a sale by sale basis, which means whether you sell 0 homes or 20 homes a year, you only get paid when you sell a house.
The fact is, a commission based profession like real estate depends on how much time and effort you are willing to put in to make as much money as you want. If you want to make $20,000 a year or $100,000+ a year, it's all up to you.
How Much Commission Does A Real Estate Agent Charge In New York
Since I am an agent in New York, our standard or most common top percentage is 6% of the purchase price, but it can vary depending where you live in the U.S. Now this is the most common commission rate, but its not in stone. An agent can decide to go a little higher like up to 7% or as high as 10% depending what the transaction entails. An agent can also go lower than 6% depending on the situation with the seller.
How Much Does The Real Estate Broker Get
Now all real estate companies are not created equal. Most real estate companies get paid 50% of each transaction. Sounds like alot? It depends on what services your company is offering to earn 50% of your pay. Some offices offer great marketing services and materials, desk, computer and more.
Let's do an example:
You listed and found the buyer and sold the1 family home for $300,000. You charged the seller 6% of the purchase price.
- $300,000 X 6% = $18,000
- Your broker gets $9,000
- You get paid $9,000
That's right you will actually get a check in your hands for $9,000. Wouldn't you like to have $9,000 in your hands at once for selling a home. But don't be fooled there's alot more work involved in doing a real estate transaction than you think, it's not as easy as you think, especially in this market. Any profession that makes a great income takes skill, hard work and dedication to the business.
How Do You Get Paid When You Co-Broke A Deal With Another Office?
When you co-broke a deal that means two different companies work together to do a deal or sell a home. One company will have the house for sale and the other will have the buyer. See two examples of a co-broke below.
Example- One agent in a real estate company has the buyer and the other agent in another real estate company has the seller
Let's say, you had a buyer named Ms. Smith and found a two bedroom condo for $400,000 through ABC realty that agent Mr. Brown listed. Mr. Brown is getting paid a 5% commission and is willing to co-broke 2% with the agent for the buyer, which is Ms. Smith.
- $400,000 cost of the condo X 5% = $20,000 total commission
- $400,000 cost of the condo X 3% = $12,000 total paid to Mr. Brown's broker's office, Mr. Brown will get paid $6,000 for selling the house and pay
-$20,000 X 2% = $8,000 total paid to Ms. Smiths' broker's office who represented the buyer
*Out of the $8,000 Ms. Smith is being paid for selling the home. Her broker at her office gets 50% of her pay.
$8,000 X 50% = $4,000 for Ms. Smith's broker and $4,000 for Ms. Smith to take home.
I'm sure you get the point!
___________________________________________________
How Do You Get Paid When You Split A Sale In Your Own Office
Sometimes an agent may get a home to sell and another agent sells. Let's take a look out how they payment would work.
Example: An agent has a one family home that sold by another agent in the office for $450,000. The commission to be paid is 4% of the purchase price.
Total commission to the broker's office = $18,000
The real estate office receives 50% of $18,000 = $9,000
The total left for the two agents to split = $9,000
The selling agent will receive = $4,500
The agent representing the buyer will get = $4,500
Above are just the most common examples and there are others depending on how many agents representing a seller and how many are representing the buyer. So the splits and agreements among agents can vary.
Click Here To Find Out How A New Agent Can Make BIG MONEY In The First Year!
Who Pays The Commission To The Real Estate Broker?
This question has always been an issue in real estate as to who really pays the commission, the buyer or the seller. Over the years my personal opinion is the seller pays the commission. Why? The seller automatically has all the expenses deducted from their total profit right at the closing table. The buyer pays for the house but they are taking out a loan from the bank and spreading it over 30 years, so there is no real direct impact.
Well I hope that this article answered some of your curiosities about how real estate agents get paid. Remember that real estate company fees can vary in the percentages they pay and additional expenses they may charge per transaction.
Learn The Secrets To Making Six Figures In Your First Year!
How Do Real Estate Agents Get Paid?
Now just so you know, real estate is a commissioned based profession. People that have answered ads in the newspaper have walked into my broker's office and asked how much do they get paid and when. There are no weekly, bi weekly or monthly paychecks. You get paid on a sale by sale basis, which means whether you sell 0 homes or 20 homes a year, you only get paid when you sell a house.
The fact is, a commission based profession like real estate depends on how much time and effort you are willing to put in to make as much money as you want. If you want to make $20,000 a year or $100,000+ a year, it's all up to you.
How Much Commission Does A Real Estate Agent Charge In New York
Since I am an agent in New York, our standard or most common top percentage is 6% of the purchase price, but it can vary depending where you live in the U.S. Now this is the most common commission rate, but its not in stone. An agent can decide to go a little higher like up to 7% or as high as 10% depending what the transaction entails. An agent can also go lower than 6% depending on the situation with the seller.
How Much Does The Real Estate Broker Get
Now all real estate companies are not created equal. Most real estate companies get paid 50% of each transaction. Sounds like alot? It depends on what services your company is offering to earn 50% of your pay. Some offices offer great marketing services and materials, desk, computer and more.
Let's do an example:
You listed and found the buyer and sold the1 family home for $300,000. You charged the seller 6% of the purchase price.
- $300,000 X 6% = $18,000
- Your broker gets $9,000
- You get paid $9,000
That's right you will actually get a check in your hands for $9,000. Wouldn't you like to have $9,000 in your hands at once for selling a home. But don't be fooled there's alot more work involved in doing a real estate transaction than you think, it's not as easy as you think, especially in this market. Any profession that makes a great income takes skill, hard work and dedication to the business.
How Do You Get Paid When You Co-Broke A Deal With Another Office?
When you co-broke a deal that means two different companies work together to do a deal or sell a home. One company will have the house for sale and the other will have the buyer. See two examples of a co-broke below.
Example- One agent in a real estate company has the buyer and the other agent in another real estate company has the seller
Let's say, you had a buyer named Ms. Smith and found a two bedroom condo for $400,000 through ABC realty that agent Mr. Brown listed. Mr. Brown is getting paid a 5% commission and is willing to co-broke 2% with the agent for the buyer, which is Ms. Smith.
- $400,000 cost of the condo X 5% = $20,000 total commission
- $400,000 cost of the condo X 3% = $12,000 total paid to Mr. Brown's broker's office, Mr. Brown will get paid $6,000 for selling the house and pay
-$20,000 X 2% = $8,000 total paid to Ms. Smiths' broker's office who represented the buyer
*Out of the $8,000 Ms. Smith is being paid for selling the home. Her broker at her office gets 50% of her pay.
$8,000 X 50% = $4,000 for Ms. Smith's broker and $4,000 for Ms. Smith to take home.
I'm sure you get the point!
___________________________________________________
How Do You Get Paid When You Split A Sale In Your Own Office
Sometimes an agent may get a home to sell and another agent sells. Let's take a look out how they payment would work.
Example: An agent has a one family home that sold by another agent in the office for $450,000. The commission to be paid is 4% of the purchase price.
Total commission to the broker's office = $18,000
The real estate office receives 50% of $18,000 = $9,000
The total left for the two agents to split = $9,000
The selling agent will receive = $4,500
The agent representing the buyer will get = $4,500
Above are just the most common examples and there are others depending on how many agents representing a seller and how many are representing the buyer. So the splits and agreements among agents can vary.
Click Here To Find Out How A New Agent Can Make BIG MONEY In The First Year!
Who Pays The Commission To The Real Estate Broker?
This question has always been an issue in real estate as to who really pays the commission, the buyer or the seller. Over the years my personal opinion is the seller pays the commission. Why? The seller automatically has all the expenses deducted from their total profit right at the closing table. The buyer pays for the house but they are taking out a loan from the bank and spreading it over 30 years, so there is no real direct impact.
Well I hope that this article answered some of your curiosities about how real estate agents get paid. Remember that real estate company fees can vary in the percentages they pay and additional expenses they may charge per transaction.
Learn The Secrets To Making Six Figures In Your First Year!
How Do I Get A Real Estate Agent To Work With Me
Are you the type of buyer that can't get an agent to work with you long term? Buyers are a dime a dozen in the real estate business. Most of the time agents get overwelmed about how to select, manage and to find properties for those buyers.
There are so many buyers pulling at agents, especially now while interest rates and prices are low. So with this in mind, agents need to be selective with the buyers they choose to spend their time with. There's only so much time in a day and if a buyer is not serious about buying or cooperating then an agent may have to let the buyer go.
When you call an agent about a property you are interested in then you need to cooperate with the agent. Every agent has their own way of interviewing a buyer on the phone or in person to get the information they need to determine if you're a qualified and motivated buyer. Imagine if an agent took out every last buyer that called each day, to only realize that most or all of those buyers are unable to buy or not ready to buy.
As a buyer, you have to remember that this is a sales agent's profession and it's what they do to earn an income to care for their families. Agents have to treat their profession seriously and not waste time with buyers that view homes as a hobby or nowhere close to being qualified.
As a top producer in Brooklyn New York, below are some things I look for in a buyer that would like me to help them purchase a home:
- Know What You Need Not Want- In order for an agent to be able to help you, you have to be able to express what you need in a home according to what your money can afford. For instance, bedrooms, baths, parking, brick or frame, need a basement, close to transportation, etc.
-Know What You Can Afford - Every buyer knows how much they can afford to spend each month and you don't need a mortgage person to tell you differently. Just like when you go out to rent an apartment, you already know the monthly rent your willing to pay and the same thing goes with paying a mortgage for a home. The only thing you may not know is how that monthly amount translates to how much house you can afford in terms of price. So you need to speak to a mortgage broker before you shop for a home so you know much a lender is willing to loan you.
When you find out what you can afford then you need to know which areas you should be looking in.
- Location - Now this is the big one because many times I get calls where buyers say I will live anywhere in Brooklyn. So that means, I must set aside the time to find one house in the 4th largest city because I have all the time in the world. Help out the agent and select two to three areas that you can afford and will definitely live.
To choose a location consider the transportation you need, whether you like a quieter area or an area that is more busy near shops and restaurants or near your child's school, near family or work. Just choose.....I'm begging you!!!!
- Calling An Agent: An experience full time agent usually gets calls all day from buyers, so how can you stand out from the rest? When you call a more experienced agent sometimes they will want to know more about your needs and qualifications. So be prepared to answer a few questions about your needs, contact information and sometimes even some financial questions.
- Going To The Office - Again, more seasoned agents may feel that you have potential to buy just from a conversation with you and may ask you to come into their office. Why? Agents are usually testing you to see if you're a willing buyer because a serious buyer will do whatever it takes to get the home they want. Also, they can sit down with you face to face and get a better feeling for what you want, when you want it and if you have the means to get it.
You should bring important documents like your pre-approval letter if you have one, credit report, paystubs, w2 forms and bank statement. I suggest that you don't give your personal documentation to an agent, but just show it. I say this because you don't want to hand out personal documents if you're not going to work long term with the agent.
- Meeting At The Property - If an agent decides to meet with you at a property and you feel you want to work with this agent then come prepared to give some information. This is your chance to communicate with the agent about what you're looking for, your qualifications and how soon you want to buy.
-Qualifications- If you want an agent to take you seriously let them know you had a consultation with a mortgage broker and you have a pre-approval or you're willing to get one. This way, the agent knows you have begun to take the necessary steps to begin the buying process.
- Credit Score - Your credit score is a major factor in a lenders decision to give you a loan or not. But an agent is impressed if you already have your score. If you check your credit score yourself your score will not drop.
Find out your credit score on your own and your credit score will not drop.
Click on the image above.
- Be On Time - Agents will literally let you go if you continue to be very late for appointments or not show at all. Most agents have appointments back to back and how they use their time is important.
- Low Ball Offers - I know as a buyer you're looking for a deal. But if you give one or more ridiculous offers that is way out of the ball park an agent will think you're just playing games and not take you seriously.
- Not Placing Offers - If an agent has found several homes that fit your needs and wants , and it's in the right price range and location and you're haven't placed an offer the agent may stop working with you.
There's some other things I can touch on, but it's almost 1:00 a.m in the morning and I'm exhausted from showing houses all day. Anyway, if you want a skilled agent to treat you like a client and provide you great service then you need to respect the agent for what they do. An agent that provides excellent service and is willing to scour the city to find what you want is not an easy task. So when you find a good agent cooperate and both of you will be happy in the end.
Now that you know how to get a real estate agent to work with you, I suggest you check out an ebook I found that tells you what to be aware of during the home buying process, called "Home Buying Defense Guide." Click here to take a look.
Feel free to link this article to your TWITTER and FACEBOOK account, let's help others you know to be better buyers. Good night and read some more of my blogs!
There are so many buyers pulling at agents, especially now while interest rates and prices are low. So with this in mind, agents need to be selective with the buyers they choose to spend their time with. There's only so much time in a day and if a buyer is not serious about buying or cooperating then an agent may have to let the buyer go.
When you call an agent about a property you are interested in then you need to cooperate with the agent. Every agent has their own way of interviewing a buyer on the phone or in person to get the information they need to determine if you're a qualified and motivated buyer. Imagine if an agent took out every last buyer that called each day, to only realize that most or all of those buyers are unable to buy or not ready to buy.
As a buyer, you have to remember that this is a sales agent's profession and it's what they do to earn an income to care for their families. Agents have to treat their profession seriously and not waste time with buyers that view homes as a hobby or nowhere close to being qualified.
As a top producer in Brooklyn New York, below are some things I look for in a buyer that would like me to help them purchase a home:
- Know What You Need Not Want- In order for an agent to be able to help you, you have to be able to express what you need in a home according to what your money can afford. For instance, bedrooms, baths, parking, brick or frame, need a basement, close to transportation, etc.
-Know What You Can Afford - Every buyer knows how much they can afford to spend each month and you don't need a mortgage person to tell you differently. Just like when you go out to rent an apartment, you already know the monthly rent your willing to pay and the same thing goes with paying a mortgage for a home. The only thing you may not know is how that monthly amount translates to how much house you can afford in terms of price. So you need to speak to a mortgage broker before you shop for a home so you know much a lender is willing to loan you.
When you find out what you can afford then you need to know which areas you should be looking in.
- Location - Now this is the big one because many times I get calls where buyers say I will live anywhere in Brooklyn. So that means, I must set aside the time to find one house in the 4th largest city because I have all the time in the world. Help out the agent and select two to three areas that you can afford and will definitely live.
To choose a location consider the transportation you need, whether you like a quieter area or an area that is more busy near shops and restaurants or near your child's school, near family or work. Just choose.....I'm begging you!!!!
- Calling An Agent: An experience full time agent usually gets calls all day from buyers, so how can you stand out from the rest? When you call a more experienced agent sometimes they will want to know more about your needs and qualifications. So be prepared to answer a few questions about your needs, contact information and sometimes even some financial questions.
- Going To The Office - Again, more seasoned agents may feel that you have potential to buy just from a conversation with you and may ask you to come into their office. Why? Agents are usually testing you to see if you're a willing buyer because a serious buyer will do whatever it takes to get the home they want. Also, they can sit down with you face to face and get a better feeling for what you want, when you want it and if you have the means to get it.
You should bring important documents like your pre-approval letter if you have one, credit report, paystubs, w2 forms and bank statement. I suggest that you don't give your personal documentation to an agent, but just show it. I say this because you don't want to hand out personal documents if you're not going to work long term with the agent.
- Meeting At The Property - If an agent decides to meet with you at a property and you feel you want to work with this agent then come prepared to give some information. This is your chance to communicate with the agent about what you're looking for, your qualifications and how soon you want to buy.
-Qualifications- If you want an agent to take you seriously let them know you had a consultation with a mortgage broker and you have a pre-approval or you're willing to get one. This way, the agent knows you have begun to take the necessary steps to begin the buying process.
- Credit Score - Your credit score is a major factor in a lenders decision to give you a loan or not. But an agent is impressed if you already have your score. If you check your credit score yourself your score will not drop.
Find out your credit score on your own and your credit score will not drop.
Click on the image above.
- Be On Time - Agents will literally let you go if you continue to be very late for appointments or not show at all. Most agents have appointments back to back and how they use their time is important.
- Low Ball Offers - I know as a buyer you're looking for a deal. But if you give one or more ridiculous offers that is way out of the ball park an agent will think you're just playing games and not take you seriously.
- Not Placing Offers - If an agent has found several homes that fit your needs and wants , and it's in the right price range and location and you're haven't placed an offer the agent may stop working with you.
There's some other things I can touch on, but it's almost 1:00 a.m in the morning and I'm exhausted from showing houses all day. Anyway, if you want a skilled agent to treat you like a client and provide you great service then you need to respect the agent for what they do. An agent that provides excellent service and is willing to scour the city to find what you want is not an easy task. So when you find a good agent cooperate and both of you will be happy in the end.
Now that you know how to get a real estate agent to work with you, I suggest you check out an ebook I found that tells you what to be aware of during the home buying process, called "Home Buying Defense Guide." Click here to take a look.
Feel free to link this article to your TWITTER and FACEBOOK account, let's help others you know to be better buyers. Good night and read some more of my blogs!
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