Estate agents are generally not being paid fairly for their work, it has been claimed.
eXp UK, in a bid to encourage more agents to adopt the self employed model, has carried out a fresh study that suggests negotiators are being underpaid for the job that they do deserve to earn more.
It says that number of other salary and incentive based professions sit way ahead both in terms of the base earnings and commission.
eXp UK analysed current earnings data from Salary Expert for 15 professions that are largely reliant on the additional income of sales commission to see how the nation’s estate agents compare.
The data reveals that, at an average of £42,971 per year, the median base salary of an estate agent is one of the lowest of all professions. In fact, it places them 11th in the list, with just travel agents (£35,611), car salespeople (£32,731), business services sales agents (£32,265) and advertising sales agents (£31,596) earning a lower base salary.
Of course, with the sale of such an expensive asset such as a property, the potential commission on offer to estate agents is sizable. The figures from Salary Expert shows that the average estate agent takes home a commission to the tune of £6,420 per year.
However, while this does push them up to 8th in the list when it comes to the level of annual commission made, a number of other professions still earn a far greater degree of commission, with pharmaceutical reps sitting top of the table, taking home an average of £15,608 a year in commission alone.
When considering both the base salary and commission earned throughout the year, the average estate agent takes home £49,391 annually. This places them 9th overall in the list, with software sales reps sitting top of the table with a combined annual earnings of £80,270.
Other professions that sit above estate agents in this respect include boat sales reps, insurance brokers and financial advisors.
What’s more, the average commission earned by an estate agent equates to just 13% of their total annual earnings, while a number of other sales focussed professions benefit to a far greater degree from the opportunities available to boost their income.
The head of eXp UK, Adam Day, commented: “It seems quite frankly absurd that despite orchestrating the sale of the most expensive asset someone is likely to own, estate agents earn less commission than those selling boats and computers.
“That’s not to say that there isn’t an abundance of opportunity within the property sector for those who want to perform at the top of their game, but all too often, the average agent will see a great deal of the financial spoils of their hard work get swallowed up by their employer.”
