How estate agents earn their commission

How estate agents earn their commission

Estate agents work on a contingency basis. They only get remunerated if a transaction is successful.  The homeowner does not carry any cost or risk - the estate agent takes all the cost and risk until a home is sold.  An agent with an established database, influence, a solid network as well as industry knowledge deserves to earn the commission.

Recently, there has been an emergence of new  companies offering different strategies. These companies have impressive marketing budgets, sharp advertising campaigns claiming to replace trained agents with reliable online resources.  

As South Africans we don't argue about fees for professional legal advice or financial advisors.  Estate agents undergo an internship and are required to study for their qualification. Sellers should consider real estate professionals as trained individuals, offering a professional and valid quality service.  They are  specialists in their field with a mandate to always serve the clients' best interests.

 Becoming an estate agent takes remarkable skill and aptitude.   The process involves lengthy training, exams as well as continuing professional development in order to maintain the qualification.  Agents need to be familiar with a number of Acts, legal processes, finance and marketing.

Finding the right buyer in order to complete a sale is not an easy transaction.  A sale may take months to complete, an agent earns their commission by ensuring an effective sale process and smooth transition from start to finish for both the buyer and seller.