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How Much Should I Charge for Real Estate Commissions?

For real estate agents, the realtor come for their work can sometimes be the difference between having greater flexibility in a competitive business and being forced to make do with a subsistence-level amount. Even for some of those that have been in the profession for years, the latter circumstance can make things tight.

how much should i charge for real estate commissions

The Typical Commission

Depending on the area these sales are taking place and the popularity of a particular piece of real estate, that percentage generally ranges from five to six percent, though there are instances of higher percentages if additional help is required in completing the transaction.

Of course, there’s no clearly defined rule as to what constitutes a legitimate realtor commission. In some cases, a rental property commission might be based on the monthly rent. Like a security deposit, this sort of commission usually constitutes one month’s rent, though a lease percentage is sometimes used to come to that final amount.

One rule of thumb in this area is that red flags should be raised when any realtor is willing to go below the five percent standard. The simple reason is that there’s no real way to make a profit on a property by going any lower, which makes their judgment suspect on a number of different levels.

Listing a property doesn’t necessarily mean that it will sell, which means the longer that it stays unsold, the heavier the burden on a realtor’s ability to maneuver in other areas. However, receiving a commission advance on listings can help alleviate this problem and provide enough of a financial cushion to allow for the appropriate amount of maneuvering.

Any real estate website or booklet is filled with plenty of different properties for sale, which means that this sort of strategy brings with it ample opportunity for any professional in the field. If one realtor isn’t thinking about obtaining a commission advance on listings, that doesn’t mean that others aren’t pursuing this approach.

Dealing With Roadblocks

Even when a property does sell, there can be complications in any number of areas that can delay the official payment of a real estate commission. That’s a frustrating reality that can’t be ignored, especially since trying to get that amount of money on such short notice from any bank or other standard financial organization often takes weeks to complete.

That’s why commission advances make so much sense since they cut out all of the extraneous stretches of time that are cutting into your profit margin. With them, you have a bridge to your next deal, but without them, you’ll likely be relegated to watching someone else swoop in and take a sale out of your grasp.

After all, marketing a property involves investing your money to make sure that there’s awareness created for interested parties. Multiple investments of this sort require capital to wield the sort of influence that builds a real estate business, helping further explain why the value of commission advances simply can’t be ignored.

The Right Decision

At Wilson Gordon, the process of obtaining commission advances on a property has been streamlined so that it doesn’t take time away from your work. An online application is quickly processed and the funds distributed once the advance rate has been determined, with online signature verification completing the deal.

So whether you need an advance on a commission or a commission advance on listings, make sure that Wilson Gordon is behind you every step of the way. Your realtor commission is too important to wait on, so contact us today to get things started.

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