If you think this seems unfair, some states agree with you. Don’t miss your favorite shows. Closing a real estate deal can be a long and arduous process from the time a property is first listed for sale until everyone gathers at the settlement table to sign on the dotted lines.
Real estate agents can’t accept money directly from buyers
Closing a real estate deal can be a long and arduous process from the time a property is first listed for sale until everyone gathers at the settlement table to sign on the dotted lines. And no one will go to that settlement table unless and until a buyer makes an offer on the property. Some real estate agents specialize in bringing buyers to the table, showing them homes until they find one that’s just right, then helping them to negotiate the numerous steps involved in the purchase. But it’s the seller, not the buyer, who typically pays this agent’s commission. Some buyers believe that an agent’s brokerage pays them and this is true to an extent. But the money doesn’t come directly from the agent’s company. Real estate agents are prohibited from being paid commissions directly by consumers.
We’re Here to Help
If you’re in the market to buy or sell a home, odds are you’ll work with a real estate agent to help you through the process. How much money agents make each year depends on a number of factors, including the number of transactions they complete, the commission paid to the brokerage and the agent’s spilt with the sponsoring broker. Here, we take a look at how real estate agents are paid. Most real estate agents make money through commissions — payments made directly to real estate brokers for services rendered in the sale or purchase of a real property. A commission is usually a percentage of the property’s selling price, although it can be a flat fee. To understand how real estate agents are paid, it helps to know about the relationship between an agent and a broker.
Buying a Home
Do you know that you can make how do buying agents make money lot of money in Nigeria without owning a product, shop or office? As a product sourcing agent you can conveniently plug into the export value chain. What a good way to build up a successful exportation business from nothing and have fun doing it? Not only does it require little financial investment to start, but it offers the prestige of working with Nigerian exporters spread all over the Country.
Making contacts with exporters: As a product sourcing agent, you will need to make contact with the Nigeria exporters. You can register with some trade portals where you will have access to their chosen commodities, specifications and contacts details. You can also send a mail to them and inform them that you can meet their requirement.
However, you will need to submit a product sample to your potential clients; then you can go ahead to discuss the price and the terms of payment. Your clients: As a product sourcing agent, you will deal majorly with farmers. You will need to go to their farms and deal with them directly and you might need to transport the commodity to the city.
You can also deal with the local buying agents and the commodity merchant. Although, this can be an expensive route to take but they make product sourcing very easy.
The Agricultural sector is being totally transformed by the federal government to enable the country move from traditional farming to modern agriculture as a business both for small and large-scale farmers. The objective is to ensure food security whilst also promoting exports in agriculture value chains where we have a comparative advantage. This makes agricultural exporting one of the fastest growing business opportunities in Nigeria.
As a small investor, you can get involved in the export value chain by getting a land lease for a year at N5, per hectare or buying the land completely and start a large scale agricultural plantation. Local buying agents purchase commodities from different farmers, and pre—process them for export.
They make sure they have enough commodities in stock before the market day. The local buying agents LBA are divided into two parts:.
The local commodity merchants operate at the local level. For instance, a local buying agent that operates in Jujunku in Taraba state will buy from the farmer and stock his shop with agricultural commodities before the set market day. On the other hand, the city commodity merchants are based in Kano, Lafia, Kaduna. They are big players and before you can buy from them, you must have a big order. Some Asians that come to Nigeria do buy from them because the city commodity merchant can arrange for five to ten containers within few days.
As a product sourcing agent, you can buy from them if you have big orders, especially when you have the financial muscle to buy in large quantities.
Dealing with them ultimately saves the time of the sourcing agent because you will get your commodities at one point. The commodity merchants purchase products from different local buying agents and farmers to process and sell to the sales agent and exporters.
They are based in Lagos and you will need to give them advance payment before they can supply you your chosen commodity. I will advice any new entrants into commodity sourcing to deal with the farmers or the local buying agents, because commodity merchant are very expensive to deal. Some of them are based in Lagos. As a product sourcing agent, you will need a point man especially when you are sourcing for agro products. A point man will make product sourcing very easy for you as they know the terrain and they know how to deal with the agents.
They help in quick and effective co-ordination of your chosen agricultural commodity. Exporters are the receiver of the products and they deal with the international markets. In the export value chain, an exporter can decide to deal with any of the agents or commodity merchants.
He or she can also decide to pay in advance for the products or pay when the commodity is delivered to the warehouse. A lot of Nigerians are operating a highly lucrative export company and they are making a steady income of between Nand N 10, per month regularly; and at their spare time.
The profit from the first transaction can be ploughed back and an investor will be able to build up his capital base. The cheapest exportable product is charcoal and the startup capital required is N ,; while the profit return on investment is Nper trailer.
However, the sad truth is that Nigerians cannot even meet the demand coming from the Europeans Countries. If you have the ability to sell, and an air of diplomacy; the export business might be right for you. All you need is the desire and determination to make it work. Do you know that some local manufacturers are looking for ways to increase their market share for the goods they produce?
You can help them achieve their goal by helping them source their raw materials. A lot of Nigerian companies are looking for cassava tuners, cassava flour, Shea butter, Cocoa, maize, Groundnut.
You can get their LPO. In fact, I discovered that some of them pay on delivery and being their regular supply can raise your income level.
The non-oil export business is still at its very primitive stage in Nigeria with a very high potential for growth. The market is, thus, inexhaustible especially for agricultural commodities and other consumables.
Therefore, there is space for everyone that will like to earn foreign exchange via the export business. If you are interested in the export business, you can start as a product sourcing agent and increase your skill in the export value chain. The biggest advantage is the money you will make.
Once you get the business underway, the commission for setting up sales is very profitable. And after you establish and maintain a number of exclusive accounts, you will find out that the time you spend is highly rewarded with money.
He is the CEO of 21st Strategies. His organization helps small businesses reach their fullest potential. You can read his full bio here and contact him also for business advice.
Toggle navigation Menu. Author Recent Posts. Ajaero Tony Martins is an Entrepreneur, Real Estate Developer and Investor; with a passion for sharing his knowledge with budding entrepreneurs.
For New Insurance Agents — How Much Money Can An Insurance Agent Make?
How to Make Money Sourcing Products for Local Manufacturing Companies
Owning a Home: The Monthly Tally From property taxes to utilities, the costs of owning a home include many factors. Generally, your contract with your agent is bound to a certain time period. In this article: How much do real estate agents make on a sale? Related To: Mae Estate. Pictures of the home are taken, a property description is written, and the details of the home are uploaded to the local Multiple Listing Service MLS. The fee may be determined from several options, including:. Instead, most make their income only after a how do buying agents make money has been sold. Pinterest Facebook Twitter Email. The MLS now automatically syndicates the listing out to real estate websites like Zillow and Realtor.
Comments
Post a Comment