A real estate agent usually gets paid only when he/she has sold a house. While the economy and the market trends do play an important role for an agent, there are other ways to increase the odds of a real estate agent making money in this business.
1. By Listing Homes
A buyer’s agent primarily works with people who are looking to buy a house. The agent looks up potential houses and strikes up a deal with the seller for the client. But a listing agent helps seller’s price their home, get it ready for sale, enlist the home in multiple listing services, and negotiates on the offers.
2. By Selling Real Estate Owned Homes
REOs are homes that have been foreclosed, with banks taking possession of that home. Banks usually assign these properties to real estate agents to maintain, market, and sell. An REO agent is responsible for these properties as the owner is usually unavailable. Also, as there is a steady stream of listings, selling these homes provides good income for the agents.
3. By Selling Short Sales
Short sales are homes owned by homeowners, who cannot sell their home for enough money to pay off what they owe the bank. As a result of this, these sellers resort to convincing their banks and lenders to charge them a lesser amount that must be repaid. The listing agent helps the seller communicate with the bank, and also with the legal paperwork involved.
4. By Completing Broker Price Opinions
Broker Price Opinions, or BPOs are reports compiled by real estate agents that are similar to an appraisal. A BPO report is primarily used to determine the value of a home. It also consists of statistics and commentary to further aid the sellers. Property agents provide their services to the making of such a document.
5. By Being Property Managers
A property manager’s work is to manage the rental properties for investors or homeowners. They manage the rent collection, the maintenance fee, and the accounts. This ensures that the agent receives a consistent income every month.
6. By Being Licensed Agents
Being a licensed agent in the property market actually helps agents save a lot of money. This role has a huge advantage, as the agent profits from commissions when they buy or sell property.
7. By Being Commercial Real Estate Agents
The commercial market and the residential market are as different as apples and oranges. Commercial agents work for firms, while residential agents work on commissions. As commercial properties can sell for a bigger price than residential properties, real estate agents can cash in on this.
A major merit of being in the property business is that there is a steady stream of good income. But, real estate agents are also known to have their drawbacks, so do your research before hiring one.