The income potential of a commercial broker depends on the work experience and the market conditions. More information regarding the same has been mentioned in this article.
A commercial broker is almost like a real estate agent that helps in bridging the gap between two or more parties that are interested in buying and selling a business unit or a property. If you are eyeing a lucrative and rewarding career in the field of finance, then the job of a commercial broker is worth the pain. Though in the initial years of commercial brokering you may have to struggle, once you take-off from the platform that you have set for yourself (by gaining good work experience) you will see that only the sky is the limit.
The job of a commercial broker is quite challenging, and requires a good understanding of the brokering business (real estate, economics, accounting & finance/stock exchange, property management, etc.). Moreover, personality traits like good business communication skills, coupled with some years of work experience, can help an individual to attain a six-figure salary. Good decision-making ability and negotiation skills are the most important qualities that must be an integral part of a commercial broker’s personality.
A commercial broker is expected to act as a liaison between the buyer and seller, and break the ice between them by introducing the common terms and objectives on which the deal has to be finalized. It is the sole responsibility of the commercial broker that there is no communication gap between both the parties and the deal is successfully closed.
A commercial broker also acts as a mediator between the two parties in case of disputes and sorts them out at the earliest. Many commercial brokers who have established themselves in this business, own their own private firms and brokering business units, but that stage comes only after one has struggled and made big contacts with reputed firms.
As such, there are no strict educational qualifications required to become a business broker, however, many firms prefer agents and brokers who have a bachelor’s degree in management, law, or similar fields. It is good to be armed with a degree so that you are aware of the basics of the business, and the jargon that is used in the business.
A commercial broker can earn a lot, depending on the success he achieves in this business. A real estate broker for instance, receives 50% of the fee by the dealer in case the deal is closed and this is given as a part of the commission. The rate of the commission is dependent on various factors, like the policy of the firm, the selling price of the firm, and the type of the property.
It is a fact that the salary of a commercial worker is paid in straight commission, and that too only if the deal is closed, which makes commercial brokering a risky career opportunity. The security of a pay check is not meant for the people in this business. Commercial brokers mostly rely on their savings or the advance they get for future deals.
Generally, commercial brokers can’t expect to make too much money in the first few years. Usually, it takes five to six months to close a deal and complete the transaction, so patience is a prerequisite characteristic of a commercial broker. Most brokerage firms divide the profit equally, or depending on the contribution of the individual brokers that is judged on various parameters. In the initial months a commercial broker does not earn much, but after four to five years, the average salary is about $100,000 annually.
If the market conditions are fine, then a commercial broker can easily earn anything between $70,000 to $100,000. If the market is booming, then salaries can fluctuate between $200,000 to $500,000. No doubt, commercial brokering is a risky business, but since the salary is worth the effort, you may wish to pursue the career of a commercial broker.