Real Estate Agents and Broker Career

A real estate agent or a real estate broker is the term used in United States and Canada to describe a person who acts as an intermediary between sellers and buyers of real estates. In various countries and governments these people are called by different names whose powers and responsibilities are also entrusted differently.
In the case of US real estate brokers and their salespersons assist sellers in marketing the property and selling it with the highest value under the best terms. But when acting as a buyer’s agent he acts in the best interests of the buyers but with a signed document between them. In case of no signed agreement the agent acts on behalf of the seller and buyer without the knowledge of the buyer.

In most jurisdictions of US for a person to be a qualified real estate agent the individual must have a license before he/she receives any remuneration from his clients. Unlicensed activity is illegal. In some states of US, lawyers handle real estate sales for compensation without being licensed as brokers or agents.

Education:

  • Prospective agents must be
  • High school graduates
  • Be 18 years or above
  • Pass a written test administered by state

Most universities and colleges offer various courses in real estate. Some also offer a bachelor’s degree in real estate and also certificate course. Some brokerage firms offer training even for beginners and experienced persons.

The subjects include:

  • Finance
  • Business administration
  • Statistics
  • Economics
  • Law
  • English
  • Advanced courses in
  • Mortgage financing
  • Property development and management

Are very helpful in this field.

Licensure:

Prospective agents must be licensed in order to start their career in real estate.  They should pass a written examination conducted by the state. This examination includes questions on basic real estate dealings and the laws affecting the sale of property. Most states require 30 to 60 hours of classroom training for an agent and for a broker 60 to 90 hours along with 1 to 3 years of experience.

State licenses should be renewed every 1 to 2 years.

Real estate agents and brokers have a good future provided they prove themselves efficient in this field. As the agents gain expertise and become more efficient in closing more transactions, and increase their income, they can advance to sales manager or even general manager. And for people who earn broker’s license, may open their own offices. Others may become real estate appraisers and those people familiar with operating and maintaining real estate properties may become property managers.

Job outlook:

Employment of real estate brokers and agents is increasing day by day with the increase of people buying real estate properties. And in the coming decade employment of real estate agents and brokers is said to grow by 14 percent. But employment of real estate brokers and agents is sensitive to ups and downs of economy.
There are many people who work part time in this field, combining them with their other careers. But in the coming decade this is said to decline with the growing use of internet. And for the beginners there is always a tough competition with the already existing agents and broker’s firms in obtaining listings and in closing adequate number of sales.

Projections data from the National Employment Matrix:


Occupational title

Employment 2008

Employment 2018

Real estate brokers and sales agents

517,800

592,100

Real estate brokers

123,400

134,00

Real estate agents

394,400

458,200

Salary:

The median annual salary including commissions of real estate agents in 2008 was $40,150. 50% of middle persons earned between $27,390 to $64,820 per annum.

Median annual salary employing largest number of real estate agents in 2008 was:

  1. Residential building construction                              $49,620
  2. Land subdivision                                                               $44,410
  3. Offices of real estate agents and brokers              $41,320
  4. Activities related to real estate                                  $36,410
  5. Lessors of real estate                                                     $32,150

Median annual salary of real estate brokers in 2008 was $57,500. Median annual salary in industries employing real estate brokers in 2008 was:

  1. Residential building construction                              $63,280
  2. Offices of real estate agents and brokers              $59,710
  3. Activities related to credit intermediation             $57,740
  4. Activities related to real estate                                  $56,140
  5. Lessors of real estate                                                     $47,230

Real estate brokers salary 2009:

In industries with highest level of employment:


Industry

Employment

Hourly mean wage

Annual mean wage

Offices of real estate agents and brokers

27000

$37.49

$77,900

Activities related to real estate

9740

$35.70

$74,250

Lessors of real estate

6530

$41.76

$86,860

Activities related to credit intermediation

780

$33.18

$69,020

Residential building construction

540

$40.92

$85,110

Top paying industries:


Industry

Employment

Hourly mean wage

Annual mean wage

Other investment pools and funds

110

$59.87

$124,530

Depository credit intermediation

70

$46.94

$97,640

Management of companies and enterprises

300

$44.35

$92,260

Land subdivision

500

$43.98

$91,480

Lessors of real estate

6530

$41.76

$86,860