Real estate is the industry which manages buying, selling, or renting and construction of property. People who work in this industry are known as real estate agents. They help people buy, sell, or rent property and earn a huge commission in turn of the service they provide.
The Money Factor
The amount of money made by real estate agents depend on a number of factors, like the number of transactions done by them and the commission paid to the agent by the buying and selling parties.
Real estate agents take around 6-7% of the total value of the deal as the commission, which is made directly to the real estate agents by either of the parties. However, this rate differs from place to place, property to property and broker to broker.
How do they do it?
To understand the process of money making by the real estate agents, one should understand the relationship between the broker and the agent.
Both agents and brokers are licensed salespersons under the state government in which they work. But many a times, real estate agents cannot work independently. Also, certain laws prohibit them from being paid a commission directly by buyers. Brokers, on the other hand, are able to work independently and/or hire real estate agents.
A commission on the deal is generally paid directly to the broker. It is split with the agent, if one is involved in the process.
How to be a Real Estate Agent
To be a Real Estate Agent, one at least needs a school leaving certificate. Agents must also get licenses from the state government in which they work.
Job Skills and Requirements
One needs to have proficiency in the native language of the state in which they want to work in to be a successful real estate agent. An agent, to achieve the pinnacle of success should definitely build a strong communication skill. The greater number of languages one is adept with, the better the chances of being a good real estate broker.
The second quality that a real estate agent must possess is the ability to sound convincing. Because if an agent is not passionate about his/her job and do not sound convincing enough for the client to believe in him/her, he/she is never going to be successful in this field.
Additional qualities like wide knowledge about the industry, the place and the demographics play a vital role in the making of a good real estate agent.
It is always advisable for an upcoming real estate agent to first work under a property management company or a real estate broker to gain a perspective about the business and the industry.
The future of real estate agents
As the real estate market began to turn around in the last decade, the real estate agent jobs grew moderately. But in the last couple of months, the trend has seen a decrease across India. With the advent of ‘zero brokerage property management companies’ in the industry, the demographics is gradually turning towards them, as they emit most of the risk factors of the industry. But however, a real estate agent can always find a way out can go for establishing enterprises or real estate companies, and continue working in this field.