How Fee of Real Estate People is Calculated

The real estate market has always been the greatest contributor in the GDP of America. A large chunk of American GDP comes from the real estate market every year. The American economy is heavily dependent upon this market due to the fact that it earns huge profits every year. There are large numbers of people who hire the services of these real estate agents to find a home for themselves. The word real in real estate is resultant of a Latin word. Real estate is also used in American law. Thereare large numbers of real estate agencies in the market providing their expertise in relevant category of real estate. It is not easy to open a real estate agency in America because the broker can not do real estate business without license. Brokers have to apply for a license if they want to start their real estate business because otherwise they are going to be arrested by the local police authority.

There are 52 states of America and it is must for broker to obtain license from the state in which he is going to do business. These brokers have also developed their website. A customer who wants to own or rent a place can search it on the Google. A list of real estate agencies will appear on the screen from which the customer can choose the appropriate one. These companies have given names of areas and price range in which they deal. Some of the real estate agencies deal only in corporate clients. These corporate clients are either by a multinational organization or belong to a large investment groups. Such customers are mostly in interested in buying and selling of large shopping malls, plazas and hotels. The method adopted by real estate agent to charge their customers is unique. They fix a percentage which they will get if the deal is done. For example they say that they will get 5% of the amount of the deal signed from both the parties.

This means that if the building is bought and sold for 100,000 among their clients then their fee will be 5% of 100,000 from each party. Apartments and offices located on the top floor of the buildings are usually considered to be the most expensive ones. Representatives of different famous firms usually try to buy such offices in main commercial areas so that they can show people and competitors about the strong financial position of their business. Buying such places has also become a status symbol among different people due to which the prices of these apartments and buildings are sky high. The value of building is also considered on the basis of facilities provided. Those buildings that have good fire and burglar alarm systems are greatly appreciated by the people. These alarm systems are connected to the main police and fire station. In case of any emergency police will be there within 5 minutes. Families having small children usually appreciate such type places as they are well secured.