Regarding those who wish to become real estate agents, the most important knowledge is that regarding the earning potential of this vocation. In reality, understanding what the possibilities are from an economic standpoint is a key consideration in picking a professional route to pursue, and the real estate sector is no different.
To Gain a Deeper Understanding: crunchbase.com
Table of Contents
So, in general, how much can an Italian real estate agent earn?
Are you considering a career in real estate and seeking for an inventive reality in which to accomplish so? To browse our open vacancies, visit the work with us area of Dove.it or submit a spontaneous application.
In general, real estate agents work as freelancers with a VAT number, and their compensation might vary based on the contract they have with the agency where they work (if they work as employees) in terms of the set salary and recognised portion of commisions.
Additionally, because this is a career that is strongly reliant on the ability to sell (a commision is paid for each property sold), the experience of the particular agent as well as the trend of the market in which he operates must be considered when calculating a hypothetical income.
Do you want to work for Dove.it?
Courses and resources to help you grow in your field. Join our team right away!
How does a real estate agent get paid?
The real estate agent gets money in two ways:
by a predetermined stipend, which is acknowledged by the organisation where he works regardless of monthly goals completed
through the commisions paid for each individual rental or sale transaction completed, a sum that can vary substantially based on the geographical region, the particular agency in which you work, the agreements you make with customers, and so on.
Earnings that are fixed
About the set indemnity, it should be noted that it cannot be regarded a genuine pay, because real estate agents often operate as freelancers with a VAT number, even if they sign a partnership contract (generally with single mandate) with an agency.
The monthly fixed rate might range from 400 to 800 euros depending on the real estate business where you work.
Several agencies, particularly for inexperienced collaborators, do not demand the establishment of a VAT number right away, but instead give for a variable-duration training period. This first stage of the relationship is often compensated with a variable expenditure reimbursement. More frequently than not, agencies directly seek the opening of the VAT number so that the agent can get fees on completed transactions immediately.
Commissions paid to real estate agents
Every time a transaction is completed, the real estate agent is entitled to a commision, which is calculated as a percentage of the sale price or the yearly rent. The value of the commisions, which can be demanded from both parties or just one, vary substantially depending on the price of the property sold.
The real estate agency provides a portion of the proceeds to the agent who was directly engaged in the transaction. Typically, the real estate agent earns 10-20% of the entire commision sum.
Because the value of commisions varies so much and the number of transactions per month is not always the same, the monthly income connected to commisions varies greatly and is hard to measure properly.
In the case of a creative real estate agency, such as Dove.it, where the use of technology and an efficient corporate structure allow consultants to complete more deals than traditional agencies, the benefit due to commisions is thus larger.
The costs
Because the employment of a real estate agent is focused on achieving tangible goals, you may be entitled to a production bonus if you meet certain requirements specified in the contract (for example, a particular number of monthly or annual sales or a certain turnover reached through completed transactions).
This type of income is clearly difficult to quantify because it is up to the individual real estate agency to decide if and how to pay premiums, but it is a very common practise in the industry.
The more you sell, the more money you make.
Because a real estate agent’s profits are mostly dependent on their ability to properly execute sales and rental contracts, they might potentially be quite high, especially as experience grows. It is possible to acquire a great income from commisions by making a big number of sales, integrating and exceeding the value of the monthly set.
A real estate firm such as Dove.it, which assists agents in obtaining more mandates via the use of technology and cutting-edge marketing strategies, provides its employees with the opportunity for very high prospective earnings, which are higher than those of traditional agencies.
A real estate agent can aspire for genuinely big potential profits, especially in more active real estate markets, but it is critical to remember that much depends on the competence of the individual agent and the structure of the real estate business for which he works. A real estate agent may make more than 3,000 euros per month in salary and commissions with time and skill.
