How Real Estate Agents Get Paid In Ghana

A Real estate agent does not have a weekly wage or monthly salary as seen in other professions. What is earned as income in the real estate agency business is simply a commission. Although real estate agents do not receive a regular paycheck, there are many different ways they get paid for their services.

Sales Commission

The primary way real estate agents make money in Ghana is by taking a percentage of the property’s sale price. Real estate agents facilitate the sale or purchase and charge commission after closing. The commission percentage varies depending on who you represent. In Ghana, the maximum percentage agents should be entitled to, according to Section 25 of the Rent control Act 1963 (Act 220) is 5%. Sellers or listing mostly reach the maximum whiles the buyer’s agent takes between 2 – 3% of the property sales price. It is illegal to charge a commission of more than 5% of the property’s purchase price in Ghana.

Other Services

In addition to commission from sales, real estate agents may earn money through fees from other estate-related services such as valuation, estate consulting, title searches, title registration, property management and more.

When agents provide any of these ancillary services, they usually charge 1 – 3% of the sales price.

Referral fees

Another way that real estate agents make money is by charging referral fees from real estate agencies and other professionals they refer clients to during the buying or selling process. Real estate agents can act as referral parties for institutions such as Banks, insurance companies, interior décors and other vendors within the industry.

For example, if an agent refers a client to an insurance broker for a fire policy against his property, they may receive a referral fee from that insurance company for sending them business.

Similarly, if an agent refers clients to another real estate professional such as an attorney or a mortgage lender, they may be eligible for referral fees. These fees can serve as another source of income for the real estate agent.

Rental Income and Property management

Real estate agents manage properties on behalf of property owners and other investors. They advertise, screen tenants and collect rent on their behalf. Other agents enjoy profit rent from rental properties they own themselves.

Check out: 4 Things To Consider When Buying a Land In Ghana

Real estate agent business

To make good money as a real estate agent you need to approach your career as a business and not just a sales job. Real estate can be very lucrative and financially rewarding when the correct business principles are upheld. Companies become great through consistent effort over a long period. The same is true in the real estate agency business. Real estate agents become successful through years of consistent hard work. It is not a job for the get-rich-quick or lazy person. It’s for the one who shows up every day and works hard

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