How much can a sub-broker Earn?

Do you want to know how much a sub-broker can earn? For this, it is necessary to better understand the profession and how to become one. In this article, we will help you find out the salary of a sub-broker franchise.

How much does a sub-broker earn?

Have you ever wondered what a sub-broker business model is and how much a sub-broker can earn?. Know that this answer can be relative. After all, a lot will depend on the commission that the professional will receive when closing a sale, in addition to other variables. But do not worry. We will explain to you how it works.

Briefly, knowing what the salary of the sub-broker will depend on:

    • The type of work he does

    • Type of property you sell

    • Number of sales closed per month

    • Percentage of the fee and brokerage you receive

According to the Regional Council of Realtors (CRECI), the average commission in this sector can vary by approximately 6% to 8% in the field of urban and industrial real estate. For rural people, the percentage rises from 6% to 10%.

This means that he will receive this fee on top of the sale he makes. For example, when selling a house for R$100,000, if you have a 6% brokerage rate, the broker will receive a total of R$6,000 with this contract.

However, if the sub-broker franchise does not work autonomously and is a partner of a real estate company, this commission is usually divided in half. Usually, the rate of 2% net on the value of the properties is established. Of course, the more expensive the property sold, the higher the broker’s remuneration.

Working with real estate

As the sub-broker comes to rely on the company’s entire structure to carry out sales or leases. He can focus on negotiating with clients, leaving the administrative issues to the institution’s support. This backup costs the real estate company, which is reimbursed from the same source as the broker. Thus, the professional’s billing will depend on the rules applied by the company for the division of earnings.

Monthly planning and strategic goals

It is important to always remember that the commission payment has instability. Just as there are months with good sales and higher incomes, in others, scarce deals can limit your earnings.

To prevent and adapt to this reality in sub-broker franchises, it is necessary to set goals that keep you in constant vigil and provide a safety reserve. So, even in times of high deals, you remain alert to ensure the maintenance of average income in times of low.

To do this:

    • Consider your average monthly sales.

    • Consider the commissions received on each transaction.

    • Discount the expenses.

But in order not only to take precautions but to carry out an efficient control and projection of income, it is necessary to know its performance in each of its areas of activity. Become familiar with productivity indexes and measure not just sales but all efforts to close.

An example of data to be monitored is your conversion rate from contacts to sales; with this result segmented by product and service, you will be able to decide which strategy to adopt, focus on where you are most successful, or seek to increase your rate where performance is smaller. This means not just designing your earnings but measuring them intelligently.

When is the commission paid?

The payment of the broker’s commission must occur at the time the deal is concluded. In some situations, even with the withdrawal of one of the parties, the commission must be paid. This occurs, for example, when a buyer and seller come to sign a purchase commitment document, but, for some reason, one of them backs out at the last minute. The quitter, in this case, is responsible for the settlement with the broker.

Regardless of the operating sub broker business model chosen, professionals must be aware that their remuneration is directly linked to their ability to do business. The more you trade and sell, the higher your income.