Agents should often ask themselves whether their activity in the field is yielding the desired remuneration. In effect 100% commission of R0 is (yes, zero). To simplify this for an agent, I have plotted below a simple function showing time between payments from property transfers.
Real Estate Agents start out with high transitory income (as defined by Milton Friedman’s school of economics) implying longer wait times between earnings than the average monthly paid and salaried worker. This means that as an Estate Agent you need the cash readily available on your money fast period to keep your personal Real Estate business afloat. Advanced Real Estate Agents in the field accommodate for easily for high transitory income however this type of agent is a special outlier. In effect the average agent’s duty is to reduce the gaps between drought seasons of income to levels of at least half a month in the South African economy.
Questions to ask yourself to diagnose the income trap problem for estate agents: