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How Much Does an Agent Really Earns?
01 October 2014
How much does a Real Estate Salesperson really earn? It is really tempting to take that leap of faith and become a Real Estate Agent upon hearing tales of multi-million dollar transactions by other agents – the question is, do they really happen or are they really just that, tales?How Much Does a Real Estate Agent Earn, Really? The truth is, this varies broadly across a whole spectrum of agents and no yardstick can actually be placed as to how much an agent really earns. Apart from that, the amount a real estate salesperson earns is really dependent on plenty of variables related to the property market in general as well. This includes the market’s property price index, industry transaction volumes and other governmental measures. A real estate salesperson’s wage is also highly volatile as it is mostly commission-based, of which is calculated via a percentage of a property transaction. Commissions are usually between one and two percent when an agent assists in the sale of a property and 1 month for every 24 months of rental amount when he assists to rent out a property . Based on an annual survey conducted by the Royal Institution of Chartered Surveyors and real estate recruitment company Macdonald & Co, of which results were released earlier this year, the average income of a property agent in Singapore stood at approximately $12,767 a month or about $153,207 per annum*. Factors Involved in the Pay As mentioned earlier, a real estate agent’s wages is commission-based and the number of transactions an agent manages to secure is hugely dependent on the market. In a slow market where people are not buying or selling, the income of a property agent will no doubt be negatively impacted. Poor transactional volumes have been noted in recent times and can be contributed to various factors including that of a slew of cooling measures implemented by the government to control property speculations. It is also important to keep in mind that it takes considerable investment, both in monetary and physical terms for an agent to find success. Right at the get-go, agents are required to obtain certifications from various regulating bodies and are expected to retain their membership within these bodies to remain accredited. These regulating bodies include the Singapore Accredited Estate Agencies Ltd and the Institution of Estate Agents whilst they have to pass the Real Estate Salesperson (RES) examination. It is also no secret within the industry or any industry in the world that the more you invest in yourself and your services, the higher the chances of reaping the rewards. Yes, there are agents who get by solely on word-of-mouth marketing, but in an increasingly competitive landscape, going the extra marketing mile will definitely help an agent stand out amongst the cluster of agents. The potential to earn a better-than-average amount is definitely there, should you consider a career as a real estate salesperson, but, one has to also understand the risks involved in holding a job with a fluctuating income whilst grasping the fact that a lot of hard work goes on behind-the-scenes as well, in terms of holding the right accreditation and investments in marketing of a property listing or that of the property agent’s services itself. Data & Article Sources: – Latest salary survey 2014. Available at: http://www.macdonaldandcompany.com/salary-survey (Accessed: 21 October 2014). |