Realtors serve as your intermediary when you’re buying or selling a home. Brokers, in particular, earn by way of a commission, which they receive upon a successful sale or purchase of a home.
Some brokers work as freelance agents. These brokers earn money solely through the commission they make in successful deals. But brokers can be part of a company as well. Brokers who work at a brokerage firm earn a monthly income on top of the commission they make from a sale or purchase.
In the Philippines, brokers typically ask for a 2.5% to 5% commission based on the total cost of the home. 2.5% commissions are the standard for upmarket properties, while 5% is often relegated to medium-priced properties.
Brokers also get a commission from real estate spaces for rent. Normally, brokers get one month’s worth of rent as a commission for brokering a full year’s lease. Subsequently, they are also to receive half of that first figure for every time that the client renews the lease for another year.
In this sense, it is imperative for a broker to be a successful closer and deal-maker at his job, more so for freelance agents to whom it is, as they say, “all or nothing.” It is for this reason that new brokers often opt to work for a brokerage firm to build connections, experience, and skill in their field before branching out on their own.
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