Comm Computation at IRSC

How do we compute for the commission on a sale?

COMMISSION COMPUTATION

QUESTION: What terms do I need to compute for my commission?


- You need to know the following to compute for your commission:

TSP or Total Selling Price Commission Rate


TSP or Total Selling Price- This is the amount of the property

alone without the miscellaneous fees and other charges.


Commission Rate- This is your present rate at Innovare

Realty Solutions.


QUESTION: Is TSP or Total Selling Price different to TCP or Total

Contract Price?


- Yes, TCP is different because this term already have miscellaneous charges and other fees that the Developers are including in the computation while TSP is plainly the amount of the property itself.

Remember to not forget this!


QUESTION: What are the composition of miscellaneous fees

that you are talking about?


- Miscellaneous fees “usually” include, but is not limited to:

- Documentary Stamp Tax- Transfer Fees- Registration Fees- Notarial and documentation fees- Other administrative and handling fees


QUESTION: How much will I be able to get on a sale?


Just multiply TSP by your rate


QUESTION: How about tax? How much tax will be deducted in my

sale?


- Deduct 10% Withholding Tax from the commission to get the Net Commission you will receive.


QUESTION: What if my sale have staggered down payment?


- In cases where staggered down payment, you will receive the commission on a staggered basis also or on a milestone schedule (every 3 months, every 5 months) depending on the Developer.


So, always convince your client to have a full down payment to receive all of your commission, or majority of your commission if you will not receive it immediately.


QUESTION: Will I be receiving all commissions if the client will pay for

full down payment?


- No, the client should also be approved to the financing institution before receiving the complete commission.


- If the client paid for full cash, then that’s the time for the seller to receive the full commission.


QUESTION: What are the documents we have to sign?


- You need to sign the voucher that IRSC will give you.

- If you will receive the voucher online, print the voucher, sign it, scan it then send it back to us as proof of receipt by the seller.


Just remember that it depends on the Developer if there are still

deductions on their commission release like VAT.


Those who get P 30,000 to P 100,000 a month worth of

commissions are searching for clients everyday

(even if they are part-time sellers only with full-time attitude)


“Think BIG about what you want to achieve.

Think SMALL about how to achieve it.”

- SUN TZU, Strategies for Marketing quoted from “The Art of War”

END

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Comm Computation at IRSC

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Transcript of Comm Computation at IRSC