What is a real estate agent
A real estate agent mediates commercial properties, villas, holiday homes, condominiums and plots of land. The real estate agent’s task is to mediate contacts between buyers and sellers. You handle the negotiations between the parties and draw up contracts when the parties have agreed.
As a real estate agent, you should give the parties the advice and information they need to be able to complete the deal. The real estate agent checks, for example, ownership, mortgages, produces a written description of the property and calculates the buyer’s housing costs.
The broker assignment includes advertising for buyers and showing the object to interested parties. You can also be commissioned to find a specific property or condominium that a customer is interested in buying.
What does a real estate agent do?
A real estate agent is like a spider in the web. He / she has contact with housing speculators and home sellers. The goal is to get these two parties to agree on a price and terms in a housing deal.
When the real estate agent manages to get buyers and sellers to agree, the home changes owners.
A real estate agent can and may sell both freehold houses, properties and condominiums. The real estate agent is expected to be an expert in the housing market and how a sale of a home takes place.
This expertise helps home sellers get paid as much as possible for their home. It also helps a homebuyer to feel secure in his purchase.
The task of getting buyers and sellers to agree can be performed in different ways and with different amounts of skill by the real estate agent.
Here are some of the tasks that the real estate agent has during a sales assignment:
- Collect information about the object, such as its default
- Inquire about the seller’s expectations, such as price and time frame
- Value the home at a market value that is correct
- Create a selling but realistic ad
- Advertise the item in the available channels
- Provide views of the item
- Find buyers and bring these together with the seller
- Act impartial intermediary towards buyers such as sellers
- Act as an advisor
- Be sure to inform about current legislation and obligations
- These are some of the things a broker does, if you were to wonder what they’re really doing.
For many, it is easier to sell their house through a real estate agency and its realtor than to sell their property themselves.
This is because a real estate agent has greater resources for marketing and that it usually gives a greater confidence in the buyer.
How do you become a real estate agent?
Are you wondering if this profession is for you? Or have you already decided that this is what you want to do when you become “big”. Then you should find out what is required here.
To be able to work as a real estate agent, you must study at a college or university. This is a requirement and registration is then granted by the state authority – the Real Estate Inspectorate.
Training and requirements for real estate agents
A real estate agent must attend a university education and a certain number of different higher education credits are required to be approved and become a registered real estate agent.
If you are not a registered real estate agent, it is illegal to mediate housing and act as a real estate agent. Realtors are thus a protected title.
Competition in the real estate industry
As a real estate agent, you quickly notice how fierce the competition is in the industry. All brokerages and brokers, old and new, fight with beaks and claws about all the sales that are made during each year.
The fierce competition means that all bad brokers are eliminated and the good ones remain.
Thanks to the market’s payroll system, the real estate agents who are not delivered are cleared fairly quickly. The statistics show that 25% of all newly registered real estate agents stop working as brokers within 1 year.
After 2 years, 50% have quit and changed jobs. There is a lot of money to be made as a good real estate agent and that makes the competition fierce out there in the market.
Average salary for a real estate agent
- Men 2019: 45100 / month
- Women 2019: 36900 / month
- Average 2019: 41100 / month
The vast majority of real estate agents work completely without a fixed salary and only receive a salary based on the sales they make.
This means that a real estate agent who does not sell any homes receives $0 in salary. A real estate agent normally receives about 23-30% of all the money they withdraw to the real estate company in salary.
This means that a broker who takes $4700 including tax in commission from a customer may keep approximately $1000 in salary (if you count on 25%). The remaining amount goes to the brokerage firm for premises, marketing, etc.
Real estate agents earn an average of around $4800 a month before tax.
Those who earn much less usually quit as brokers and change industry. A successful broker can easily earn $5900 a month up to $23,500 a month during his best years.
A real estate agent may keep about 23-30% of the deducted commission in salary and a real estate agent sells on average about 30-50 condominiums per year or about 25-30 properties / freehold houses per year.
Real estate assistant jobs
If it feels too far away with two years of study or if you do not currently have the right to apply, you can instead apply for a job as a real estate agents assistant.
This can be a good start for you to get into working life and get a little more meat on your bones in your professional career – one does not exclude the other!
What does a real estate assistant do?
A real estate assistant’s job is to be the registered real estate agents right hand man. You then help, among other things, to collect facts, prepare information sheets and similar information.
It is still the real estate agent who is ultimately responsible for the brokerage assignment itself. However, he or she will be able to delegate certain tasks to the assistant.
Working as a real estate assistant is a very educational and comprehensive job for you who would like to take the step to feel what it is actually like to work as a real estate agent – training gives skill and there is no better way to work your way up to get a better sense of it’s something for you!
Brokerage fee – this is how it works!
In exchange for the services that the real estate agent does for you, ie his job, you as a seller pay a property a brokerage fee.
The fee is usually a percentage fee of the sales price or in some cases a fixed price. The brokerage fee can be around 3 to 5 percent of the sales price, but it varies.
The differences also lie in where in the country the sale takes place. In Stockholm it is one thing, but in other places it may be something else.
The broker’s fee is negotiable. Therefore, as a seller, you should take in quotes from several real estate agents to see who gives the best price and seems most trustworthy.
A big plus is, for example, if the real estate agent you choose has experience of selling items in your area.
Here is something that may be good to know for you who are considering selling:
- The brokerage fee is deductible against the sales price when the capital gains tax is calculated
The role of real estate
A real estate agency is a company that employs real estate agents and sells properties. When it’s time to sell your house, contact a real estate agency.
Once there, you will then be assigned a real estate agent. Many brokers work for many agencies and which one you get as “yours” often depends on the area or type of object you have.
The agency usually has a large number of items for sale. You have probably set out to look at houses in their shop windows at some point.
The objects you see there have thus been commissioned to sell, then it is the real estate agents role to be the personal contact for each object.
Selling a house without a real estate agent – is it possible?
Can you sell your house or apartment without hiring a real estate agent?
Of course you can do it and there are a lot of people who do it. There are no legal requirements or the like that you must use a real estate agent when selling your home.
The reasons why you do it are of course personal, but many times it is to avoid the brokerage fee and because you think that you can simply do an equally good job, ie get as much for the object as the real estate agent would.
But a lot to think about. There are a lot of laws that one must keep an eye on. Many forms must be filled in and sent to the right authority, etc.
It is also a time-consuming job. But if you have time and above all an interest, drive. You know your house better than anyone else and hopefully also the area where you live.
There you have a review of what a real estate agent does, what education you may need to think about, how much you as a broker earn or why they can be a good investment when it’s time to sell to hire a broker!
Hope you have gained a little more knowledge about what it all means and can benefit from it when it is time to get in touch for upcoming sales.
Good luck no matter what!
How to become a broker?
To become a broker, you must study college courses. The most important courses are: tax law, economics, building technology, property valuation, real estate brokerage, civil law and real estate law.
You must also do a 10-week internship with a reg. broker.
What does a broker earn?
The average salary for a real estate agent in 2020 is approximately $6000. These statistics apply to both men and women.
What does a broker cost?
The average brokerage fee for 2020 is $6606.