If you are interested in working as a real estate agent, it is essential to have full knowledge of how much a real estate agent earns. In this post, we will take a look at the earning structure of real estate agents in Nigeria. How much does a real estate agent earn?
How To Become A Real Estate Agent In Nigeria
Generally speaking, you might obtain a state license to work as a real estate agent. You don’t require any further certificates beyond your state-issued license. Growing as a real estate agent requires patience, networking, and learning properly learning the nitty-gritty of the business.
How To Make Money As A Real Estate Agent
An estate agent relies on commissions from a real estate transaction. The commission is a percentage of the value of the real estate transaction. It could be a land sale, house sale, short lease e.t.c, and the commission is typically 6-7%. Some agents that work for brokerages earn a base salary plus a percentage of the commission. As a real estate agent in Nigeria, you can make money in the following ways:
Although it can range from 3 to 7 percent, the average commission fee is 6 percent. As an illustration, let’s say you sell a house for 350,000 Naira with a 6% commission. Does that imply that you have just made 21,000 Naira from a single deal.? Understanding how the commission is calculated is necessary to calculate a real estate agent’s actual income. Most times, there are two agents involved in a house sale or lease. The listing agent, who represents the property owner selling the house, is the first. The purchasers of the for-sale property are represented by the buyer’s agent.
The 6% compensation is often, but not always, split equally between the listing agent and the buyer’s agent. One agent may occasionally take a little bit more of the commission. In this instance, the commission was shared 50/50 amongst the agents. You still receive 11,500 Naira at the end of the day.
Working For Established Real Estate Brokers
When they first start, almost all new agents work for a real estate broker. A portion of the 10,500 Naira commission you just earned will go to the broker. A typical cut is about 30%, though it varies depending on where you work. Although some brokers give their real estate agents a little hourly or monthly salary, the majority of their income depends on how much each agent sells. You’ll make more money the more actively you participate in purchasing and selling houses.
Best Paying Paths In Real Estate
If you want to make good money as a real estate agent, these are the best paying paths
Broker Price Opinion
As a licensed estate agent, you can earn money by completing extra documentation, such as the BPO report.This report, created by certified appraisers to value homes, compares several home values along with pertinent data and other seller-friendly details.
Landlords frequently engage property managers because they are unable to handle all of the administrative responsibilities that come with owning a property on their own. Real estate brokers can make extra money by taking care of these tenants’ property management needs. Rent collection and building maintenance are two examples of this.
Commercial Real Estate
The regular monthly income that comes from a lease makes being a commercial real estate agent more financially advantageous. Renting is really what leasing is, so you’ll still get paid regularly rather than just on commission. Before contacting potential clients, conduct the necessary study to understand the commercial sector, and update your website and business cards to highlight your area of expertise.
A Realtor is a qualified real estate professional who upholds a high standard of ethics. Working as a Realtor can help you establish a reputation and expand your network in your market, which could lead to more sales.Discuss the advantages of joining a regional chapter of the National Association of Realtors with other realtors as well for further information.
Real Estate Brokerage
Real Estate brokers have numerous advantages over individual real estate agents. They oversee the agents connected to their business and get administrative costs as well as a portion of the commissions paid to the agents.
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