Tag: real estate agents

How real estate agents can prepare for the coronavirus

In many countries the Health Authorities held public meetings to give information about the new coronavirus as well as informing about the ongoing preparations. This is a good thing to be prepared and informed as this puts everybody at ease. There is nothing worse than public panic, when everybody runs to the shop leaving empty shelves. This can create even bigger problems.

Of course, this is not just job of the authorities, there is something everybody can do. First, stay calm and objective.

How can each of us be prepared you may wonder.

Especially if you have a real estate agency you may have to think about what actions to take. As seen in Italy maybe it is possible for some workers to do their tasks from home. Always remember, better safe than sorry. You can make sure that all of them have the necessary tools to be able to do that. Maybe a business cell phone and laptop that they can bring home, just in case.

You should start thinking about special preparation for your team, some may have to stay with their kids if schools or kindergartens close.

Avoid trips to coronavirus infected areas

Also, avoiding trips to places where the virus has spread should be carefully reconsidered. Maybe a possible buyer likes to view a house in such place. It might be better to postpone in that case. For example, you could show a virtual viewing of the house instead. You can then travel later when it is safe again.

Regardless of being a real estate agent or not …

This is the most important everybody should do: wash your hands as often as possible. Everybody should have a good cough etiquette, disinfecting surfaces that might be contaminated, keeping distance to somebody who seems sick and don’t go out if you feel ill. Those are very simple but effective things. Of course, we all know them, but as we sometimes forget it’s always good to be reminded especially now with the new coronavirus.

Stay healthy. 🙂

Real Estate Agents are still valued & in high demand

Certainly, nice to hear for every real estate agent, we just love them. Most of us can´t do without them. This is the conclusion of a survey recently carried out in Germany by INNOFACT AG (a market research institute).

We value their professionalism and expertise

The survey shows that most of private owners would rather hire a broker to sell their property than to market it themselves.

Almost 69 percent of them would hire a real estate agent even if they had to pay the fees themselves.

When searching for the right agent, they found, Internet research is ranked first. Naturally, a high revenue in the sale is priority for sellers during a quick and straightforward sales process.

57 percent of respondents said they want to ask a real estate agent to handle the sale. 36 percent want to try the real estate sale on their own. That applies with 44 per cent especially for the young age group from 18 to 39 years. 69 percent of those who want to hire a broker would do so even if they had to pay parts or 100 percent of the commission themselves.

“What if the property in question is far away?” they asked

The answers of those who would rather sell their real estate themselves are even more striking in this case. Suggesting a travel time of around one hour or more, 96 percent say that they would hire a real estate agent in this case. Even under the assumption that they would pay his fees, 84 percent say that they want to work with a broker.

Not a surprise

Answering about the order of the most important aspects in the property sale, owners answer:

1: As high as possible

2: As fast as possible the sale

3: As little effort as possible

So, to all real estate agents: we love you – keep up the good work.

To give an extra help for agents, try our partner website to list your real estate deals: https://www.all-real-estate.com/

The study: Online survey of INNOFACT AG on behalf of ImmobilienScout24 among 500 private property owners throughout Germany, who plan a real estate sales within the next three years. Survey period: July 2019.

Are real estate agents paid on commission only?

The answer is: It depends.

If real estate agents are paid on commission only depends if the real estate agent is self-employed or not. If not, he would get a monthly wage from his employer plus his share in a deal when he sold something.

Being employed

Any real estate agent who does not own a business is usually an employee at a bank or at a real estate office.

This can be lucrative. Although in this case the commission is not particularly large, he receives a fixed salary each month.

The commission varies greatly with the performance of the broker. In most real estate offices the performance-related salary would be between 20 to 50 percent of the commission.

Being self-employed

An alternative to an employment with a monthly salary is being self-employment as a real estate agent.

There is no fixed income, but the commission per sale or rental is higher.

Real estate commissions are based on the price of the property. The commission for a real estate transaction is negotiable. It tends to range anywhere from 1% all the way up to 10%.

But don´t forget, as a freelance real estate agent you also have more expenses, such as costs forrunning your office and possibly paying staff. These costs will lessen your profits. In addition, self-employed need to look after their health insurance and Pay taxes (income tax, trade tax, etc.).

Real estate agents carry a high economic risk, because they are responsible for the accuracy of their statements. Basically, they work for free until they sell something. Some properties may not be sold because of unrealistic price expectations of the seller. Also, some may sell only after many months and countless viewing appointments. In addition, buyers who contact the seller directly to bypass the commission pose a commercial risk to the real estate agent.