Here’s how your agent earns their commission

30 July 2020 | Business

On average, for every hour that a real estate agent spends with the homeowner of the property they are selling, they will spend around nine hours out of eyesight working on the seller’s behalf. The reason for this is fairly simple – if they don’t sell the property, they don’t get paid.
“Most agents work on a commission basis, meaning that they will only receive payment for their services if the property is sold,” explains Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa. “Unlike other professionals who bill their clients for the amount of time they spend working for them, agents run the risk of coming away empty-handed. While this is a risk, it is also highly motivating and pushes them to go the extra mile to ensure that the deal is closed.”
The reason that certain agents charge more, has to do with the agent’s experience and what they can offer the seller. “If an agent can achieve the agreed upon selling price within the stipulated time frame, they are often able to charge higher rates for the higher quality service they are able to provide,” Goslett says.
As part of their service to the seller, an agent will take out magazine and newspaper adverts, print flyers and brochures, have professional photos taken of the home and ensure that the home enjoys premium placement on property search portals. Not to mention using the services of a public relations officer to engage with targeted media, posting listings on social media and holding show days.
Beyond this, an agent earns their commission through the power of their networking skills and their ability to match buyers with the right homes. To match buyers to homes, agents often spend time helping other agents in their network to match the right buyer with the right home. Often agents will refer buyers to other agents if they know that agent has the house that checks every box on their wish list, which makes partnering with an agent from a large real estate brand more beneficial to sellers.

Matches made
Once a buyer and home have been suited, much of the job entails dealing with the offer from the buyer, as well as counteroffers from the seller.
According to Goslett, this is a crucial part of the property sale, as the agent can net the seller thousands during this stage of negotiations.
Unfortunately, not every property sale will go smoothly. Agents also earn their commission by shielding their clients from any unnecessary drama.
“An agent will work tirelessly to ensure that the property sales process is as hassle-free as possible for all parties involved. Even if there are no hiccups, a property transaction can be stressful, and people often get emotional. A good agent keeps a positive approach and comes up with a constructive solutions to issues to protect buyers and sellers from the stress this might cause,” Goslett says.
Ultimately, if a seller does not feel like their agent has earned the commission, then perhaps they are dealing with the wrong agent.
“A good agent will add value to property transaction and earn their keep. The amount of hours spent to market one particular listing is irrelevant, as it often does not reflect the countless number of hours the agent has spent behind the scenes building up their network of buyers and their knowledge of the area – both of which enables them to sell a home as quickly as possible,” Goslett concludes.

Similar News

 

Poiya Media: A success story

1 day - 27 October 2020 | Business

As Poiyah Media celebrates over 1000 days in business, it welcomed its sixth group of interns to its public relations agency.Since inception, Poiyah Media not...

NWR undertakes voluntary retrenchments

1 week ago - 18 October 2020 | Business

Namibia Wildlife Resorts (NWR) announced that it has began a voluntary separation exercise to align its staff numbers in light of the impact that Covid-19...

Supporting all that is ‘local’

2 weeks ago - 14 October 2020 | Business

The Buy Local Grow Namibia campaign which was officially set in motion on 1 October 2020, continues to gain momentum.The campaign which is set to...

Market hours extended in capital

2 weeks ago - 13 October 2020 | Business

Windhoek mayor Fransina Kahungu announced that trading hours at markets have been amended, allowing more time for vendors to sell their wares. This arrangement comes...

#GrowYourBusiness talks launched

3 weeks ago - 06 October 2020 | Business

Standard Bank Namibia and the Namibia Economist launched series of online #GrowYourBusiness talks to inspire business owners and provide them with guidance, monitoring and management...

SAIF announces new leadership

3 weeks ago - 01 October 2020 | Business

Marco Wenk of Namibia Breweries Limited was elected as chairperson of the Self-Regulating Alcohol Industry Forum (SAIF) during their recently held AGM. At the same...

Omboga powdered spinach soup hits the market

4 weeks ago - 29 September 2020 | Business

The Development Bank of Namibia (DBN) celebrated the culmination of its support to 2018 Innovation Award winner, VNA Foods, at the launch of the fledgling...

DBN Innovation Award winner makes strides

1 month - 24 September 2020 | Business

Winner of the Development Bank of Namibia (DBN) 2019 Innovation Award, Pulsar Electronics, is making strides with a DBN enterprise development and support package that...

Drive local, support local

1 month - 24 September 2020 | Business

If you are in the market for a new or used Volkswagen, or if your prized possession needs a specialised service, then look no further...

Just the best for baby

1 month - 24 September 2020 | Business

Belle's Baby Boutique opened a mere three months ago, but has grown in leaps and bounds since then.According to owner Isabelle van der Walt, her...

Latest News

Hot hockey on the cards

1 day - 27 October 2020 | Sports

The Namibia National Inline Hockey (NIIHA) team trials where held last weekend and while the temperature outside was hot, the action inside was on fire!This...

Micro grant for Gobabis foundation

1 day - 27 October 2020 | Society

The Light for the Children Foundation in Gobabis received N$180 000 from the German embassy's micro project fund to implement safety measures at its school...

Aiming for top cycling honours

1 day - 27 October 2020 | Sports

The Nedbank Desert Dash is the principle for every cyclist, and this year, the Namibia Cleaning Chemical Solutions (NCCS) Cymot Pro Cycling team says the...

Purchasing property for the parents

1 day - 27 October 2020 | Life Style

It is not uncommon for those who find themselves in a better financial position than that of their parents, to purchase a property on their...

Rural residents receive food parcels

1 day - 27 October 2020 | Social Issues

The Namibia Red Cross in collaboration with the health ministry and with the assistance of NamibRE last week donated food parcels to 50 vulnerable households...

A history of violence

1 day - 27 October 2020 | Social Issues

Windhoek • Jana-Mari SmithNamibia’s grim epidemic of violence against women could be partly traced to decades of violent oppression by colonial and apartheid forces and...

Changemakers reach out

1 day - 27 October 2020 | Social Issues

In a bid to continue creating positive change in communities, volunteering employees of the Capricorn Group spent time with over 100 orphans, vulnerable children and...

Poiya Media: A success story

1 day - 27 October 2020 | Business

As Poiyah Media celebrates over 1000 days in business, it welcomed its sixth group of interns to its public relations agency.Since inception, Poiyah Media not...

New campaign ignites patriotism

1 day - 27 October 2020 | Banking

Get Local #GoBeyond – this is Bank Windhoek’s new swipe campaign that is aimed at stimulating patriotism in light of the global pandemic challenges.According to...

Load More