The real estate agency business in Nigeria is now becoming a money spinner venture. Many people beginning to understand the reason housing is more paramount in human scale of preference. As a real estate agent, you can make money driving prospective buyers all around town, showing them houses for sale and hopefully after a few weeks of searching, those buyers can decide on a house to buy from.
A career in real estate can be rewarding and challenging, the profession should not be for everyone because there are certain levels of knowledge you need to have before you get started in real estate business. As a real estate agent, you are essentially working for yourself. But, just as you would before starting any business, you should make sure you have the right character traits to work for yourself before becoming a real estate agent.
To really make money in real estate business in Nigeria, you need to understand one fact that as a real estate agent, you will work strictly on commissions generated from the sale or rental of a residential or commercial property. In developed economies, people pay their bills of whatever size through incomes earned from marketing estates and properties
What to Understand and Do to Make Money as a Real Estate Agent
– You should make sure you have the right character traits to work for yourself before becoming a real estate agent. At least the ambition to make money from the real estate must be very high.
– You have to organise yourself to know the branches of real estate before delve into it. – You should know that what you earn is your pay; call it salary, honorarium, emolument, commission or what.
– There could be great challenges, obstacles and distractions but you must be focused knowing you are always on your own so you must be on your toes with ears sharply open.
– You must persevere because, initially, the road could be very rough and unless you continue, you may not make it there.
– Above all, you must develop manners of approach, friendly relations; you must mingle among peers and above peers including associations, clubs and societies that cut across class.
– To make money from real estate, you must set your own schedule, you will need to be organised and ambitious enough to actually work at your business every day.
– Organisation skills are important because you will be dealing with contract deadlines, client appointments and follow-ups with other professionals in the field.
– You will need to like working closely with people, because real estate sales are all about helping people buy or sell their homes, so you will be in frequent contact with clients every day.
– You need to be comfortable dealing with people. – You need to have a customer service mindset
– You have to be confident, knowledgeable and above all, absolutely willing to go the extra mile for people. Read more
How do Real Estate Agents Make Money
– Working with Buyers: This is the most common way a real estate agent to make money. The real estate agent will look for houses to sell, show houses, write offers on houses for buyers and help the buyers throughout the transaction. Buyer’s agents will also work with sellers as well, but mostly when a buyer they are working with needs to sell their house to buy a new home.
Listing Homes for Sellers: This is another great way make money as a real estate agent. As a listing agent, you will help sellers price their home, get it ready to sell, list the home in MLS, negotiate offers and complete the transaction process. Here is a great article on how to get a house ready to sell. Listing agents can make a lot of money because not as many hours are required to list a house as are required to help buyers buy a home.
Make Money Selling Short Sales: The short sales are homes owned by homeowners, but the homeowner cannot sell the home for enough money to pay off what is owed on the home. The seller has to sell the home for less than the bank is owed and convince the bank to take less money.
The real estate agent will help the sellers list the home similar to a traditional listing, but the agent also has to help the seller communicate with the bank. The bank will need a ton of paperwork from the seller and may take weeks or even months to make a decision on whether to accept an offer. There are many tax and legal implications with a short sale that an agent needs to be familiar with.
Completing Broker Price Opinions: Broker price opinions are reports completed by licensed real estate agents that are similar to an appraisal. However, appraisals can only be completed by licensed appraisers and are much more detailed than broker price opinions. Broker price opinions require an inspection of the home with some broker price opinions requiring just exterior pictures and others requiring interior photos.
Commercial real estate agent: A commercial real estate is a whole different game than residential. Many commercial agents will work at a large firm to learn the trade and may work for a salary, while residential agents typically work for commissions. Commercial properties can sell for much more than residential, but it can take a very long time for them to sell.
It takes much more knowledge to sell commercial real estate due to the valuation process, which is much more involved. Instead of using the comparable sales approach which is used for most residential properties, most commercial properties are valued based on their income and expenses. Read more
There are many ways to make money as a real estate agent. Some points might have been left out on what things real estate agents can do to make income for themselves. One of the great parts about being an agent is you can create multiple income streams for yourself. If one stream dries, then other streams can keep you going.