Which do you prefer in earnings from real estate sales - commission or mark up?

[Alexandoy]

I prefer commission, it's easier and straight to the point. There have already set a percentage that would be yours after any sales, this is part of the agreement, so after sales, there would be no argument as what one should take.

When you are highly experienced with selling real estate properties then you can perhaps choose the mark up. I have earned big money when I once succeeded in selling a lot by mark up. It is like earning 5 times the commission that I would get.

 

[HayKay]

I'd prefer a mark up but I'll also be careful to not go overboard with what's obtainable generally in the industry. Before adding anything to the price, I'll take a survey of the average price of similar properties around first to ensure I'm in line.

 

[Toyoabasi]

In our culture selling real estate can give you 2 options to earn. You can be paid a commission for the sale or a property or you can earn from the mark up that you had padded the selling price. When a relative asked me to sell his lot he gave me a fixed price. An agent who had a buyer approached me and said that we can increase the price. And so we did by adding a mark up of 50,000 pesos (that's about $1,000). When the property was sold I got my share of 25,000 pesos and the owner gave me a tip of 5,000 pesos.

That's great.
Does that mean you posed as an agent?
I am not into real estate business, but I know how lucrative the business is.
Even the agents earn well.

 

[YERUS]

In our culture selling real estate can give you 2 options to earn. You can be paid a commission for the sale or a property or you can earn from the mark up that you had padded the selling price. When a relative asked me to sell his lot he gave me a fixed price. An agent who had a buyer approached me and said that we can increase the price. And so we did by adding a mark up of 50,000 pesos (that's about $1,000). When the property was sold I got my share of 25,000 pesos and the owner gave me a tip of 5,000 pesos.

Commissions and markups are what agents stand to gain when they are successful with their part of the business.
The agent fee commission is what i would prefer as an agent.

 

[tyrim88]

In real estate, those incharge of sales are the biggest player in the market because they tend to make higher profit than anybody else. She you purchase a particular property for a certain amount and you hold it for a while, selling it back will yield more return than waiting to be receiving a commission. Once you've sold the property you have the rest of mind that nothing can happen to it anymore.

This is one of the things that makes real estate business very unique,because you can get a property at a particular price and then decide to keep it for it to appriciate before selling it for a relatively higher price,the good thing there is that the landed value does not depriciate.

 

[greenie]

I prefer the percentage or the commission. In general, I believe that in most countries real estate agents work on a percentage basis. If the price of the property is increased, a greater profit will be obtained and all those who adhere to said benefit will be welcome. That in many cases, when the owner or the client is happy with the operation, they give the agent some more money

 

[Grandeur]

In our culture selling real estate can give you 2 options to earn. You can be paid a commission for the sale or a property or you can earn from the mark up that you had padded the selling price. When a relative asked me to sell his lot he gave me a fixed price. An agent who had a buyer approached me and said that we can increase the price. And so we did by adding a mark up of 50,000 pesos (that's about $1,000). When the property was sold I got my share of 25,000 pesos and the owner gave me a tip of 5,000 pesos.

Based on this example you have stated, mark up looks like a sure way to have an income from sales of properties as it is backed by agreement than commission which may lower.

 

[Lens]

In my country we call the mark up loading. What is funny is that we tend to be very smart at times. We will get the commission as well as the loading or the mark up.

 

[Sotherefore]

Well it's nice to be earning the commission of every sales but this may not always be consistent , here you can only be able to earn a commission when a property is being sold , That's what I know.

 

[tyrim88]

I'd prefer a mark up but I'll also be careful to not go overboard with what's obtainable generally in the industry. Before adding anything to the price, I'll take a survey of the average price of similar properties around first to ensure I'm in line.

That is actully a good idea to approach the issue of property that one would want to sell,because you will really need to know the value of properties arount that area before going for mark up.

 

[Nomad]

I think markup is better for both, the owner as well as the broker. As a broker, you will try to see the property for a higher price (higher the price., better is your commission) in the mean time the owner will also get better rate for the property.

 

[Shigobad2020]

Being an estate agent pays a lot and that's the main reason why they make commission or mark up when selling or renting out an apartment , I prefer the mark up .