How much does a real estate agent charge in Australia? The million-dollar question has a quick answer: it depends. It depends on many things, such as training, dedication and the company for which the professional works.
But since we do not want you to be disappointed by this imprecise answer, in this post we will tell you how to determine how much a real estate agent earns in Australia and the factors to take into account.
What Does the Salary of Real Estate Agent in Australia Depend On?
In this profession, we have a great handicap of having professionals from other business sectors. It is often a mistake to think that anyone can go on to sell houses, when in fact solid training is necessary.
Therefore, the first step in determining the salary of a commercial real estate agent is to think about whether or not he has such training. It is not a matter of having gone through the university, but of being trained in real estate sales techniques, business administration, notions of contracts, consulting, customer acquisition techniques through a website for real estate, etc.
Are you a trained agent? Then you have the first step covered.
Secondly, to determine how much a real estate consultant earns, one must take into account years of experience. Did you just come to the sector? Then you will have little experience, something that is paid with a higher salary.
Finally, the third and last step is whether or not you are able to sell the property.
Because, in short, it is about getting to sell properties, something that if you are able to achieve (a born or star seller) you have to recognize it with a salary from a real estate agent in Australia to match your results.
Being a Real Estate Agent, is it Profitable?
It is clear that a professional who has just entered the market will not earn the same as one who has been in it for many years.
Why? Because the one that takes the longest will almost certainly be more efficient.
Stay with this word, because it will be the most important that we review in this post.
A highly efficient agent, the one who is able to capture and sell properties quickly, will be able to link some operations with others.
The reality is that this scenario is not very likely, because no matter how good the agent is, we must count on him not working alone. To operate at their highest level, agents must have the support and advice of other professionals, such as lawyers, experts, notaries and a long etcetera.
Furthermore, Rafael Bello, one of the most capable real estate agents in our country, achieves an average of 400 operations a year in REMAX / Arcoiris thanks to having two offices with about 53 agents.
Thus, we can find highly efficient work teams, which achieve many sales per year, and more modest teams, where few professionals have to distribute all the work of calls, procedures, visits, supervision, etc.
How Much Does Real Estate Agent Charge in Australia? Or Average Salary
Let’s see what the average Real Estate Agent Charge in Australia is.
There are many types of agreements in agencies. Fixed + variable, fixed + variable + commissions, fixed + commissions, all variable, or all commissions.
In 2012 the European average was 73,750 euros a year, and today it is around 85,000 euros. We are talking about averages, not minimums or maximums.
You should also keep in mind that, as we mentioned before, if the arrangement you have with the company is different, it may charge more or less.
There are companies in which the normal thing is to collect the minimum salary and commissions of up to 50% between the agency and you, for each closed contract. This way the agency makes sure that you will leave your life in each sale, because your fixed salary is really meager.
If we take into account that the interprofessional minimum wage is 707.60 euros, you will have problems if you fail to close any sale every month.
Which is not crazy either, because according to the Monapart agency, the average number of hours you must invest to sell a home is 85 hours, between capturing the property, promoting it, getting the contract closed, showing the home, negotiating, signing the earnest money and all the necessary procedures that culminate on the day the contract of sale is closed before a notary.
Whatever agreement you reach with the agency you work for, make sure that if things don’t go as you expect, they won’t be exposed.
Salary of a real estate agent in Australia: How much to pay in commission?
Things change when you are the one who must pay the salary of a real estate agent in Australia.
If what you want is to form a good team, that you can maintain for a long time and that are capable of leading other teams, we advise you not to haggle.
In a real estate business – The Functions of Real Estate, agents are your sales force, your digital real estate marketing team and your workers are everything. Contrary to what happens in other businesses, where the production and marketing of products are two branches that do not touch each other, you can afford different scenarios.
This is not the case in the real estate business. You must pay the agents as they deserve because if you do not have their loyalty, you will not sell a tail.
According to professionals in the sector with many years of experience, the idea is to double the interprofessional minimum wage and agree on 50% commissions in the buying and selling process.
If the agent is good, it will end in one or two years, but in the meantime, it will have generated good benefits, for you and for them. If you don’t pay them well, they’ll be gone in six months, and you won’t have accomplished anything.