The real estate negotiator is a professional who acts on behalf of a real estate agent in order to negotiate and sell real estate. He therefore acts as an intermediary between the seller and the buyer. Although real estate negotiation does not offer impressive earning potential, it still allows you to have a rather attractive minimum wage. If you are considering a career, then here is what you need to know about the salary of a real estate negotiator.
How is the minimum wage for a real estate negotiator calculated?
the minimum wage for a real estate negotiator is mainly calculated on the basis of the commissions on the various completed real estate transactions. These commissions vary depending on the type of employment contract signed by the negotiator. However, they generally represent between 20 and 50% of the remuneration received by the real estate agency for which the negotiator works.
On average, a novice real estate negotiator thus earns about 2500 euros per month. The most experienced negotiators can win up to 5000 euros per month, see more. It should therefore be remembered that the real estate negotiator is remunerated not only according to his seniority, but also taking into account his status within the agency.
In addition, it is important to know that negotiators working exclusively in real estate are very often paid less than those specializing in the construction sector.
Remuneration of the real estate negotiator: what are the conditions to be observed?
Before the negotiator receives his remuneration, several conditions must be met. There are mainly four:
A regular mandate of the negotiator;
Effective participation in the mediation;
The conclusion of the sale;
The need for a definitive commitment.
The need to have a regular mandate before being remunerated
The mandate of the real estate negotiator must absolutely obey the rules of common law and the exorbitant rules of common law. These are imposed by the Hoguet law as well as its implementing decree.
These different standards impose several conditions for the mandate to be regular. The latter must:
To be written;
Be limited in time;
Define the negotiator’s imperatives;
Contain various mandatory information;
Provide for exclusivity clauses.
To these obligations can also be added the need for the mandate to include a penalty clause or guarantees of remuneration. This is a clause that allows the negotiator to have a commission, even if the sale transaction has finally been carried out without his intervention.
The real participation of the negotiator in the mediation activity
In order for the negotiator to receive remuneration, the sale transaction must have been concluded with their assistance. In addition, in the event that there are several parties, the seller is only required to pay the party through whom the transaction was concluded. The negotiator can, however, obtain damages provided that he can prove the fault of the seller.
The actual sale
The negotiator is not entitled to the payment of a commission until the sale has actually been concluded. However, if the sale did not take place despite his best efforts, he may claim damages if he can demonstrate that this situation is due to his principal.
Furthermore, the deed of sale must also include the commitment of the parties to payment. It is also a sine qua non condition for the negotiator to receive remuneration.
Read also: How to sell your house
A definitive commitment between the parties
This is the last condition that must be met for the negotiator to be paid. Once the deed recording the sale has been signed by the parties, the real estate negotiator is entitled to his remuneration. This is effective even if the sale was no longer executed. This is generally the case with sales annihilated by the effect of a termination clause.
Minimum salary of a real estate negotiator: wage portage as a guarantee?
For real estate negotiators wishing to benefit from a certain coverage while retaining their freedom, wage portage is the ideal formula. This type of collaboration allows the supported employee to benefit from a number of advantages:
Good enhancement of their image;
The development and retention of their clientele;
Coverage linked to civil liability insurance;
Contributions for retirement;
Health insurance coverage, etc.
However, it’s important to keep in mind that all of these benefits come with a return. Indeed, approximately 7 to 10% commissions are then taken from the turnover achieved by the professional. The latter has, in this case, the freedom to set his minimum wage as a real estate negotiator.