Can a new property agent make $8,700 within her first 2.5 months? (See bolded section above) About a year ago, I joined one of the top real estate companies in Singapore, and happened to be recruited under one of the top-selling divisions. I later left the industry for personal reasons, but I still receive work related sales figures, and I can honestly say that yes it is totally possible. I’ve seen the figures.
However, the Real Estate industry follows the 80/20 or 90/10 rule: 80-90% of all the money made in real estate is being made by 10-20% of real estate agents. This essentially means that majority of agents actually might not close a deal each month (they might be part-timers), or might only close 1 deal.That actually does make sense, if there are 26,000 housing agents (stated in article below) and only a few thousand total property transactions a year. If every agent were to close 1 deal a month, a total of 312,000 deals have to be made annually!
This are some figures of how much some agents from my division made in august last year, and in july recently. Last year’s market was going downhill with the recession, while recent markets seemed to have picked up because of stock market rallies:
While you look at the above figures, you can imagine what the new comers are making, beyond the “Top New Achievers”. Likewise, you can also see how some new comers quickly propel to the overall “Top Achievers” chart as well.
The drop out rate for this industry is more than 50%. That means, within 6 months to 1 year, at least 50% of newly recruited agents would no longer be active in the industry at all.
If you do want to be a real estate agent, you have to strive to be amongst the best! If you are not racking in high commissions within 6 months, or at least earning more than what your full-time job used to pay you, this is not the industry for you.
More agents join the fray
by Ng Baoying
Channel NewsAsia 05:55 AM Jul 29, 2009
THE buoyant property market of the past six months has attracted not just
buyers, but also mid-career professionals who have made the switch to become property agents.
Industry watchers said there are about 26,000 housing agents here, and the number could hit 40,000 if the positive market sentiment continues. During the lull last year, there were fewer than 20,000.
ERA Asia-Pacific had 45 per cent more new hires in the first half of this year, compared to a year ago. PropNex is getting about 200 new agents a month, compared to 165 during the 2007 boom.
One pull factor is the higher commissions from private property sales as property prices continue to climb.
ERA Asia-Pacific associate director Eugene Lim said: “If they do property sales, an average per month is currently about $6,000 to $7,000. For private property rental, which some new people start off with, you can get average of $3,000 to $4,000 for a deal.
“The slightly more experienced ones will have higher volume … It’s not uncommon to see a top producer in the company doing in the region of $50,000 to $100,000 a month.”
PropNex Realty’s CEO Mohamed Ismail cited the example of an agent who was a Singapore Airlines crew member for 19 years. Concerned about being retrenched, she attended Prop Nex’s courses earlier this year, and started work at the end of May. “In the last 2.5 months, she closed transactions worth about $87,000,” said Mr Mohamed.
Property agencies said they are also seeing more professionals with postgraduate qualifications joining the industry.
Said Mr Lim: “In 2007, when the country had full employment and market was surging, we attracted people with short-term perspectives. This time, we are attracting quite a number of people who are higher qualified, making a mid-career switch. So, they tend to be diploma or degree holders. Some even hold masters degrees.”
Property sales are on the rise: Transactions of HDB resale flats were up 50 per cent in the second quarter, while the number of new private homes sold in Q2 was more than the total figure last year.
But in a boom period, agencies also advise homebuyers to be cautious of rogue agents.
“In any business, there will always be rogues. This will tend to increase when the transaction volume increase and also when the market is going up,” said Mr Lim.