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Perry Hender…, Real Estate Pro in Austin, TX

What's the right salary and commission for an on-site condo sales rep?

Asked by Perry Henderson, Austin, TX Tue Oct 30, 2007

I have trendy condo complex and need to find the perfect fit for an on-site sales rep. I think I can attract a better candidate by offer salary plus commissions. The questions is, what comp plan is fair and allows me to weed out the deadbeats? The target income is $70,000.

The place favors the creative lifestyle and starts at $300K for 1 and 2 bedrooms.

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We have reviewed a number of models ranging from real estate brokerages to inside sales representatives. There are inherent problems with using real estate brokerages such as lack of control, poor marketing and advertising execution, lack of focus, training ground for inexperienced agents, and diversion of leads to other competing developments and listings. We have also reviewed various salary programs such as straight salary, base salary plus commission, straight commission and commission with incentives. Base salary seems to create a disincentive. It takes away the urgency of sales and causes more staff turnover. Whereas you might carry a new sales representative on a commission only compensation plan, most developers can't afford to carry new sales representative who don't produce for more than 90 days.

We use a split approach with 0.5% paid to outside sales (ie. outside real estate agent) and 1.5% paid on inside sales (ie. no outside real estate agent). We also offer sales incentives akin to bonuses for targeted performance (ie. specific communities or specific targeted sales goals) as well as a team commission of 0.9% paid to all sales representatives to promote greater teamwork. The team commission essentially creates a base for the new agents. We also pay for E&O insurance, in-office training and professional fees.
0 votes Thank Flag Link Fri Sep 26, 2008
As the market gets tougher, you will have to pay more for quality. Salary is never suggested unless there is no product for 4 months +. You have a hard time getting quality under 2%, though you will find as low as 1%. Depends if you want to sell the condos or not. 1.5% would have normally been a good number to use, but we are where we are.
Web Reference: http://www.TopKWGroup.com
0 votes Thank Flag Link Fri Jun 20, 2008
What is the right salary + commission? There are 70+ condos. I'm looking for examples on a fair "package" to offer...
0 votes Thank Flag Link Tue Oct 30, 2007
Something that I see alot in my area with Builder as for as On-Site sales reps go. You see a lot of Salary plus a incentive everytime something sales. Example $500 to $1500 incentive for each unit that sales.
0 votes Thank Flag Link Tue Oct 30, 2007
How many condos? How long will the project last? While one is working on your projcet, they are not builidng a base of business for the future, and they lose touch with their area in the market by not being in the field.

Many savvy agents may only be attracted to your offer if it allows them to concurrently maintain a hand in thier own marketplace. If that were possible, you might find a savvy agent willing to work your project if your area is slow.
0 votes Thank Flag Link Tue Oct 30, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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Hi Perry,

Builders around here normally pay about 1% of the sales price. So if the units are about $300,000 that would be about $3000 each and they'd need to sell 23 or so to hit the $70,000 mark. Can they sell 2 a month? I think it just depends on the marketing plan for the building, how many units you have and how long you expect them to stay. You have to figure out a way to keep them there through construction and closing, but perhaps spread their payments out over that time period.
0 votes Thank Flag Link Tue Oct 30, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Based on the standard 6 % commission, since it is in house, make it a flat 3% commission or base salary and $5000 bonus on a 1 bedroom, $8000 bonus on a 2 bedroom.

If you do upgrades, 20% commission on the upgrades.
Web Reference: http://www.iansellsnola.com
0 votes Thank Flag Link Tue Oct 30, 2007
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