Property Agents make A LOT of Money

I think the Straits Times over-glamorised the real estate profession in its multi-page spread on "Rodeo Realtors" yesterday.

In terms of their income.

Maybe the writers were being very selective and showcased only the highly successful property agents.

But I don't think it's a stretch to say that the article may mislead a few young minds, much like the way some insurance agencies and MLM firms "encourage" their new recruits (see comment).

The ST article showcased 7 real estate agents:

- Male, 36, 2 months' experience, $10k average monthly income
- Male, 53, 2 years' experience, >$50k average monthly income
- Female, 35, 4 years' experience, $10k average monthly income
- Female, 26, 3 years' experience, $10k average monthly income
- Female, 38, 7 years' experience, $7k to $10k average monthly income
- Male, 36, 2 years' experience, $5k average monthly income
- Female, late 40s, >10 years' experience, >$26k average monthly income

But, according to the MOM Report on Wages, the top 25% of real estate agents make a gross monthly income of $4,647 (at the 75th-percentile mark). See post.

So the agents listed above are all in the top 25%, with 6 of them hugely successful by most standards.

Or, if these agents are the "average", there may be a discrepancy between the MOM numbers and reality.

Either way, people will be flocking to be property agents. Hopefully they will not be too disappointed.

http://www.salary.sg/2008/property-a...-lot-of-money/

I read the article and hmmm.. who should i believe the ST or MOM..
What is the reality?
These few years, estate is blooming, they will earn a lot. When market is bad, will they earn so much?

Reality is it's not possible to find the "average pay" for real estate. It can range from negative(after cost) to more than a million SGD per year. Also the pay is gross, so must still deduct expenses, about roughly 20% - 30%.

Property agents are not employees, they are considered business owners. Therefore a business owner earning a few hundred thousand dollars is ok when compared to other businesses.

It's only when you conmpare them to employment income then you feel they are earning alot. The popular curry puff owner makes alot more than $100k a year.

I don't have information about what property agents take home pay is. But even if it is not $10K, $5K monthly is still a lot for a Sales position that does not require a Degree. All being said, when during downturn, the pay will be substantially reduced. Also, my perception is that there are more people making big as property agents than insurance agents. Just imagine 1% commission per transaction, average price of a HDB house is probably about $300K, you just need to close 1-2 deals a month.

The article may over-glamourize, but I feel that it is a very lucrative career if you are okay with house viewing on weekends and weekday nights.

I agree with smart trader that it can be a lucrative career only if one works hard and smart. No degree and earn more than $10k a month is very common in singapore. I remember there is an article in salary.sg about hawkers earning >$100k a month in sales. Even after say 50% expenses, still can make $50k a month. Maybe they don't even have PSLE.

I believe the higher your education, the less you will start your own business, therefore less chance to become rich. Being employed and earn $5k a month is good pay. Being self employed and earn $20k a month is normal.

Property business is the one for any who like to start to be your own boss with no high start up cost. Maybe some money for buying nice shirts, ties, handphone bills and transport fees. But in this business I think you must like sales and like to mingle with people from all walks of life.

However, you are competing with more than 30000 in the market and how you can stand out among them will determine how much you gain. The fear of not clinching a deal for months will make you sweat. I am sure there will be a lot that fail no matter how hard they try but the newspaper only feature those super successful. Anyway, no pain no gain.

My understanding is that a lot of those real estate agents DO NOT declare their true income to evade income taxes.

@Reader - yes I think so too. Yet some of them have the cheek to boast about their astronomical income in newspapers such as the one mentioned in the blog article above.

Most of them only state about $10k a month. Don't think is boasting. In fact very humble already. Real estate agent if cannot earn > $10k a month is considered below average. Even sell cars also can earn about ths figure after including all the loan and insurance referral commission.

Anyway how much you earn is not the most important. How much you spend and how much you can save is. Earn $10k, spend $9.5k is not rich.

My property agent told me he earned more than 300K last year and 50K alone last month. And he is a resident agent and does not have a car, he only sells apartments within our condominium.

Imagine his savings!

But if the market spirals downhill things may turn out differently of course, after all last year was a bumper crop year for all in property line...