How Does Real Estate Agent Being Compensated?

Nowadays, everyone has a license to do the Real Estate Agent Jobs. If you are curious on what real estate business is, you must probably wonder how those real estate agents being compensated with their job. The agents are being paid by the commission that they receive or the percentage of the selling price. In this article you will know on how the agents are paid with their gained commissions.

In some cases, the agents split the commissions with the manager in the real estate office known as the broker. The agents have choices, either working at home or in the office, however they are still connected with the brokers because they are the responsible for the service. There percentage of split is different, but the commonly applied is the 50/50. The amount of the assistance provided by the broker and the service brought by the agent covers the percentage split. For an instance, the commission earned is ,000, the agent and the broker will divide it into 50/50 basis, ,000 goes to the agent and the other half is for the broker.

Another case is the 100% commission real estate. The commission earned by the agent is given to him fully. There are Real Estate agencies following this method. They have no splits and the agent could get the 100% commission they earn. This means that they will not give commission to the broker. In this method, the agent will pay the monthly fee to the office in order for the office or company certifies their name. By this, it may help the business or the agent to generate. The monthly fee could be a high, but the agents have to pay for it in order to get the full commission. In this situation, the costs are limited but the probable earning and the income is not limited.

Lastly, some of the real estate agents are compensated based on the referrals. For an instance, Agent A will refer a seller or a buyer to Agent B. Agent A may charge 25% referral fee. If Agent B close the deal and receives the ,000 commission, Agent A will receive ,500. Agent B would either split its commission to the broker or he would just take 100% balance commission, this will only happen if the agent is working on 100% commission Real Estate method of compensation.

Now, you already know how the real estate agents are being compensated. They are paid by their efforts through receiving a commission or percentage on their closed deal. The three methods of agents’ compensation are broker/agent split, 100% commission real estate, and the referral fee. Therefore, if you want to know the real estate agent jobs you must determine first what type of compensation methods you want. You should make certain that the compensation method that you choose will provide your needs. You should know also if the Real Estate Agency you are dealing with is reputable, so that you will not encounter any uncertainties.

Free Traffic For Real Estate Agents

Your first step begins with creating a 10-15 page small report that is a very detailed, step-by-step plan.

Now, there are some important aspects of this report that will likely differ from what youve heard before about creating freebie reports that I need to mention in regards to this strategy. So, let me organize the creation of this strategically designed report into three simple steps for you to complete.

1. CHOOSE a specific real estate topic.

The first thing that I want to mention is that youll want to choose a TARGETED topic for this special report. I know, I know, youve been beaten over the head with a niche 2X4 so many times youve got splinters sticking out of your scalp. ? For this strategy, youll want to have a TARGETED topic for reasons that Ill explain in our next section.

Creating a report on 12 things Home Buyers should Avoid (broad topic)

would be a better:

Learn the #1 Secret Investors Use to Buy Homes k under Market (narrow topic)

Think of it this way: Whats your field of interest or expertise? Your small report needs to be an written to separate yourself from the other 5,000 agents in your city, who all have the same free reports they got loaded on their site when they signed up at the brokerage.

Your topic should be specific enough that it would require additional articles, reports, mini-courses, products, etc. to explain the finer points of each step included.

Your topic shouldnt be to specific that it cant be overviewed in 12-15 pages.(i.e. Medicine would be too broad!)

Choose a topic related to your field of interest or expertise.

2. COMPILE a glorified checklist.

Your small report needs to be in the form of what Im going to label as a glorified checklist. A checklist is simply a list of things to do in order to complete a task. These steps are checked off as they are completed. Thus, the term checklist.

Youll create your small report in the classic how-to format (you know the drill, step-by-step system arranged chronologically) but because its a checklist youll include MORE STEPS than usual.

20-25 steps on your checklist:

Let me refer to just a quick example of 20 steps that might be listed on a checklist of creating an information product to give you an idea here:

1. Determine the target audience you want to reach.
2. Decide upon the topic of your product.
3. Choose the title of your product.
4. Select the format of your product.
5. Brainstorm ideas you want to include in your product.
6. Create a working outline for your product.
7. Identify what extra content to save for bonuses.
8. Choose chapter headings for your product.
9. Divide the chapters into daily writing assignments.
10. Create a Microsoft Word template to use when writing.
11. Complete the writing assignments.
12. Read completed materials and edit.
13. Insert additional content where needed.
14. Create and insert graphics as needed.
15. Hire someone to proofread the content.
16. Insert backend offers and additional resource links.
17. Create interior pages (Title, legal, about the author, etc.)
18. Polish the report with styles, indentions and fonts.
19. Compile the product into a delivery format.
20. Price your completed services and prepare to market.

If youre going to create an information product, this is a good checklist of things to complete. Once youve done them all, youd have a product created.

Now, the reason I described this as not just a checklist but rather as a glorified checklist.

Most checklists arent very descriptive in the activities listed. I mean, what I just gave you was a checklist of actual activities youd need to complete in order to create an information product.

The problem is, there are a lot of details involved in each of those 20 steps I listed, isnt there?

You dont want to give the readers of your report a traditional checklist with a series of action steps with no explanation.

You dont want to give the readers of your report a traditional tutorial with a series of action steps with too much explanation.

The right mixture is found somewhere in between a simple list of things to do and a full-blown product offering. The right mixture is found in a glorified checklist.

Create a checklist of 20-25 steps with 2-4 paragraphs of explanation for each of the steps listed. Give them at least one really useful suggestion for each step so they know what youre talking about.

Lets look at an example:

In my list of 20 steps to creating a free information report for my real estate clients, step 2 was Decide upon the topic of your report. So, what Id do is give prospects ONE WAY to find a hot topic (think big problem currently on their minds), go to public forums to see what people are most interested in. Id explain that thoroughly enough that they could do it and then Id move on.

You want to give them enough information that they can use it without giving them so much information that they dont need to buy anything. Its the classic useful, but incomplete formula that Ive learned and implemented for the past 7 years.

So, create this checklist-style report of 20-25 steps with 2-4 paragraphs of information for each step, and as you do that.

Real Estate Agent Myths

You may have heard horror stories about REALTORS® but do not believe everything you hear, in most cases it turns out to be nothing but a myth. Your REALTOR® is hired by you with a signed representation agreement which states fiduciary duties, obligations, and rights for each party.

A professional REALTOR® seeks to perform at the highest ethical standards in order to gain a client for life, not a transaction. Here are some common myths that need to be addressed about our San Antonio REALTORS®

Myth: REALTORS® are never on time for appointments.

Truth: REALTORS® are professionals and always schedule client meetings in order to dedicate their time for each client. We do not rush our clients when we meet with them and care in scheduling is always taken into consideration.

Myth: REALTORS® don't like to show homes they have listed for sale.

Fact: A REALTOR® has a fiduciary duty to their clients, which includes buyer and seller representation.

Even if you are not represented by a REALTOR®, the listing agent should be happy to show you this specific property since they are doing what is best for their client, the seller.

Myth: Your real estate agent will do anything you ask of them, especially if it involves commission.

Fact: REALTORS® are bound by a Code of Ethics and are subject to penalties, fines, and even legal consequences that may include suspension or revocation of license, even jail or prison convictions. If it is illegal or unethical, a professional REALTOR® should decline and even terminate the business relationship.

Myth: REALTORS® make a lot of money from commission.

Truth: The majority of REALTOR®/BROKER relationships require that the broker take a certain percentage of the agent's commission since the broker is sponsoring the agent's license.

Do not assume that the REALTOR® keeps 100% of the commission, in fact, errors and omissions insurance is often paid to the broker along with the agreed broker's cut.

Selling Your Home Through Real Estate Agents

Buying, selling, renting or renting out property all involves a common denominator. That is a real estate agency. Most people are inexperienced in this area, and the legal jargon is over their heads. Thankfully all of this is taken care of by the real estate people. All you have to do when selling is to get an appraisal so you know what price you can sell your home for, either makes that price the bottom line or negotiable, then let them do the rest. Before you actually decide on a particular agency it is advisable to check out their quality of service.

Most of us need to get an appraisal before we decide to go ahead with the sale of our home. This will allow us to work out whether there is enough value in our property to be able to live in our chosen new area. Property values differ between the suburbs according to nearness to the city, available infrastructure and so on, so it is something we need to know beforehand.

We may have a personal idea of its worth, but it may be a lot different to the professional appraisal given by a real estate agent. This is after all their area of expertise.

Contacting a real estate and requesting an appraisal is first on the list of things to do. Make sure that is well maintained, clean and neat so that is seen at its best. This will make it easier for the agent to assess its value. If you do decide to go ahead with selling, list with the agency and ask if there is anything you need to do to make it more appealing to prospective buyers. They have a lot of experience in this area too. Well tended gardens are usually the first thing a buyer will notice, so make it part of your sales approach to keep it weed free and tidy.

Selling your home through a real estate agency instead of privately makes so much sense.

From start to finish they will do it all effectively and professionally. Knowing all the legalities involved, showing how you yourself can help to make a sale successful by different things you could do make a good first impression, and taking care of bringing prospective buyers are all a part of their daily life. Knowing all this should make you more relaxed about the whole process. If you are really want to sell then make the first move and approach the agency for that all important appraisal.