How do brokers make money

Become a Real Estate Agent - What You Can Actually Earn!

Earning opportunities as a real estate agent

If you are into the real estate brokerage profession, then the question also arises how much money you can make with it. It has to be said right away that this naturally depends on many factors. You have to distinguish with which business model one is active. Only then can you be more specific about what you actually earn as a real estate agent.

Options for business models would be, for example Home office model or that Renting an office, in which you work as a broker, or else the Working as a broker in a regional brokerage office or an office of a franchise system. Even the business model that you are going to be Office owner Connecting to a franchise system, brokerage there and also employing other brokers in your office is one variant. Every business model represents a fundamentally different starting situation regarding the earning potential.

However, this applies to all entry optionssame initial situation: The acquisition of brokerage orders and the brokerage of real estate. I would like to briefly explain this using an example. If you broker a property with a value of € 200,000, then you can invoice your customer e.g. 3%, 5% but also 6% brokerage commission. This depends, among other things, on the state in which you work. According to the agreed fee, you can then achieve the following commission sales:

  • at 3% - € 6,000 net plus VAT.
  • at 5% - € 10,000 net plus VAT.
  • at 6% - 12,000 € net. plus VAT.

This turnover corresponds to the commission income of your company. But that does not mean that you have this money 1: 1 at your disposal. Depending on the business model you have implemented, you have to consider different costs that you have to offset against the proceeds. The following positions must be taken into account:

  • Costs for the Real estate marketing, such as at Immoscout24
  • Expenses for a Broker software
  • Costs for a professional realtor website
  • Costs for the Self-marketing
  • Cost to create a professional exposés
  • Insurance costs, such as financial loss liability insurance
  • monthly rental fee for a brokerage office
  • Regular investments in training, coaching and further education
  • percentage dues to one Franchise provider
  • Commission payments to the office owner, if you work as a broker in an office
  • Business tax
  • Income tax
  • Health insurance contributions
  • Etc.

You will only receive the amount that you can actually earn and spend when you offset the individual items relevant to you with the real estate sales. A general statement of what you can earn as a broker should therefore be treated with caution. As a rule, "the" Commission revenue spoken that can be achieved in a year, however, without deducting the corresponding cost items or the necessary investments.

As a rough guide, you can use the average annual commission turnover from a good real estate agent in Germany as the base value. This is around € 60,000 - € 80,000. Top values ​​of over € 250,000 and more are of course also possible. But also significantly less commission turnover than € 60,000 is not uncommon.

If you are familiar with the different business models and Earning opportunities want to explain in detail their Advantages and disadvantages want to get to know, and would like to receive further insider information for the entry into the real estate industry, then I recommend you the entry-level units developed by me.

Entry-level unit for brokers

Here oneOutlook on the questions to which you will get all the answers from me in detail. They come from the experience I have gained in practice.

  1. Which commission models do broker offices / franchise systems offer?

  2. Which brokerage / franchise system offers the best conditions for a real estate agent?

  3. Which broker offices / franchise systems already have a brand awareness?

  4. What are the costs for me in a brokerage office / franchise system?

  5. How good are the training courses actually offered?

  6. Can I freely decide how and when I want to work?

  7. Do I have to deal with the bogus self-employment?

  8. Does it make sense to start in an office that has just opened?

  9. How long will it take until I get the first turnover?

  10. Do you need professional contact persons in the office?
  11. Can you get one, two, three, etc, more in a year based on the brand name
    Conclude brokerage contracts than under your own name?

  12. Do I automatically get customer calls for the sale or rental of a property because of the brand name?

  13. Do you get more appointments with cold calling because of the brand name?

  14. Do you need a brand name to be able to conclude brokerage contracts at all?

  15. Which services, services and specialist know-how do I get from the franchisor once and regularly for my brokerage work.

Choosing the right business model - starting as a broker

Entry-level unit for office owners

Here oneOutlook on the questions to which you will get all the answers from me in detail. They come from the experience I have gained in practice.

  1. What investments and running costs do I have to calculate as an office owner?
  2. What expectations do you have of a franchise system?
  3. How do business philosophies differ from franchise systems?
  4. Do I want to work as a broker in my shop or is my goal to manage the office with several brokers?
  5. What are the average commission sales?
  6. How long do brokers stay in a brokerage office?
  7. How flexible am I when defining different commission models?
  8. What are the long-term costs in a franchise system?
  9. What are the advantages and disadvantages of a franchise system?
  10. How long does it take for a brokerage office to be profitable?
  11. Which selection criteria decide when choosing a franchise system?
  12. Which commission models do I have to offer brokers in my office?
  13. Does it make sense as a career changer to buy franchise rights?
  14. What fluctuation in brokers should one expect?
  15. How long does it take to recruit brokers?
  16. What is the number of walk-ins in a retail store?
  17. Which decision is the most sensible? Business model model 4, 5 or 6

Choosing the right business model - starting as an office owner