A real estate broker is a person who acts as an intermediary between seller and buyer. They help to buy, sell or rent properties.
Real estate brokers usually don’t have a fixed salary, but they get the commission. There are three types of real estate broker:
- associate real estate broker,
- managing real estate broker and
An associate real estate broker is a real estate professional who has a real estate license but chooses to work for a brokerage instead of opening their own. They have a salary somewhere around $55000.
If a real estate broker hires a designated broker to manage the office work-environment, then they are called managing real estate broker. Since they have a significant workload and some of the most significant responsibilities, they earn around $96000.
Broker-owners are designated brokers who own the firm. Real estate brokers earn more than a sales agent, however, there is a risk as they are paid in commission mostly.
Requirements : -
To be a real estate owner, one doesn’t need to have a high education qualification neither needs to appear for an exam. A real estate professional is one with many years of industrial experience. Usually, a real estate firm earns through the commission which they get from their customers. The pay is much more handsome because they get paid from both the side, as sellers also have to give a certain percentage of the total sale and buyers already have to pay their initial charge.
US Market Scenario: -
In the US, a massive percentage of the market is occupied by this business. One can directly surf online through the sites or go through the newspaper for lavishing properties to buy or rent. The salary of the sales agent is somewhere in between $40000 to $60000 for a newly started sales agent.
Some of the real estate brokers who make large profits also invest their money in buying own property and later sell on high rates. They take loans, and whenever they cannot find the buyer instantly, they buy the property themselves and then sell it when the customer’s choice matches.
Life of a Real Estate Broker : -
Working life as a broker is notoriously difficult as unreasonable demands of customers make it difficult to find the match. Some wealthy brokers, in collaboration with real estate investors, make new properties with lavish prevailing designs which they rent or sell through their sales agent.
There are most of the firms who work independently and are the one who earn the most. However, they do pay less to the sales agent compared to the profit they grab. So if a sales agent wants to take a big leap then they should go for building their firm, it’s a self-proprietorship. But the fact that there is a significant risk, and one has to process huge time.
Digital Transformations : -
With the ardent of the internet, this business has flourished much more. Almost all the firms use social media as their advertising platform. The real estate broker makes sizeable income, but they have expenses too. They have to invest lots of money in advertising and automobiles. The advertisement they make through television, newspaper and also through the google ads costs a lot.
These days the real estate owners have started their site where they feature all the information about sales and rent available at all locations. They post photos to attract the customers. Some websites also have provision to post their property directly. People keep on migrating for the sake of education and jobs. Thus for those frequent movers, this industry serves the best.
Salaries and Work Environment of Real Estate Brokers : -
Based on these scenarios, the salary of real estate brokers depends on the number of sales they make. This motivates the broker if they are paid in percentage because it will make them energized to work more to make money.
The job work environment is also flexible, and usually, there is not much load, but one needs to be persuasive and have smooth speaking skills. Presentation skill is also required. A survey in the US showed that most female worked as a sales agent for different real estate broker-owners because of their persuasive nature.
Indian Market Scenario : -
This business occupies a sizeable share of the market in foreign. However, in India, it is disorganized and fragmented. Usually, people get scared of brokers and do not trust them. They want to talk with the property owners directly. Since there are not many broker-owner offices, the so-called sales agent works independently fooling the people.
The brokers here don’t earn much, but sometimes they negotiate a considerable commission on the sale of some big properties.
Conclusion : -
So the bottom line is that the real estate brokers salary differs with state and country. They earn huge commission in big cities while the situation can be pathetic in undeveloped places. But the plus point is that one doesn’t need any qualification to be a broker. One’s words and his communication skills and his persuasive extent makes him successful in the field of real estate broker.