Real Estate Careers

REAL ESTATE CAREERS

Now-a-days land be it agricultural or residential or any commercial, has high value. So the real estate industry has developed in leaps and bounds with the advent of increasing need of the population in land investment. It has so many distinct fields and real estate specialists are often called on to evaluate the land value and to facilitate transactions.

Most of the real estate businesses include:

Appraisal: professional valuation services
Brokerages: assisting buyers and sellers transactions
Development : improving land for use by adding or replacing buildings
Property management: managing a property for its owners
Relocation services: relocating people or business to a different country

Some facts about real estate:

Real estate sales agents or brokers often work in the evenings and weekends and usually on call to suit the needs of clients

A license is required in every state and district of Columbia

Although gaining a job may be relatively easy, but establishing in the field is a bit difficult; since beginners might face competition from well established and more experienced agents and brokers in obtaining listings and in closing an adequate number of sales

Employment is sensitive to swings in economy.

Nature of work:

Purchasing a land is often the most critical decision in an individual’s life. Because of this complexity, people generally seek the help of real estate brokers and sales agents in buying or selling a property.
Generally real estate brokers and sales agents have a thorough knowledge of real estate market in their communities. They are familiar with local zoning and tax laws and know where to get financing. They also know which property suits best to the client’s needs. Agents and brokers also act as intermediaries in price negotiations between buyers and sellers.

They are independent sales workers who provide services to a licensed real estate broker on contract basis. In return, the brokers pay the agents a portion of commission which they get from their clients. Brokers are independent business people who sell real estate owned by others and also rent or manage properties for some amount of fee.

When selling real estate brokers arrange meetings between buyers and sellers during which they agree upon a transaction and the new owners take possession of the property which is to be sold. Brokers also arrange favorable financing from lenders to prospective buyers of the property. Often this becomes the decisive point for success or closing of the sale.

Brokers also handle other responsibilities like:

Supervise agents
Advertise properties
Supervise their own offices
And also handle other business matters

Some also combine other jobs like selling insurance or practicing law

Brokers and agents spend a significant amount of time listing- agreements by owners to place properties for sale with the firm. They compare similar market listings for sale in order to determine a competitive market price. Once the property is sold, the agent who sold the property and the agent who listed both get a portion of the commission.

Mostly real estate brokers and agents often sell residential property. Few sell commercial , industrial, agricultural or other types of real estates. Leasing a property is also one of the work’s which an agent does in real estate business. These selling or leasing requires understanding of the region and demo graphs interests, location of the property, leasing practices and business trends and also the area’s transportation utilities and labor supply. The agent must understand how to meet the client’s needs and requirements.

Before showing the property the real estate agents meet the potential residential buyers to understand the type of home buyers would like to purchase. By doing this, the agent understands how much the buyer can afford to pay for a particular property. They also sign a loyalty contract with the buyers showing the agent is the one to show houses to buyers. The agent generates a list of properties for sale, their location and description and available sources for financing. The agent’s responsibility is to show the prospective buyer the floor plan of the house, the area’s low crime rate and the proximity to schools and shopping centers, and the rental prices if the house is to be rented. If the buyer bargains over price , agents must follow their client’s instructions carefully and should present offers in order to get the best possible price. Once the agreement is done and the contract signed the real estate broker, agent must make sure that all the terms and special terms in the contract are met before closing date.

Education and training:

In every state and in district of Columbia, real estate brokers and agents must be licensed.

Prospective agents must be high school graduates, be at least 18 years old, and pass a written test.

The examination for brokers includes questions on basic real estate transactions and laws affecting the sale of property.

States require candidates for general sales license to complete between 30 to 90 hours of classroom instructions.

For brokers license the number of hours of classroom training is 60 to 90 hours and also specific amount of real estate experience, generally 1 to 3 years. Some states waive off the experience for broker’s license for those applicants who have a bachelor’s degree in real estate.

State licenses must be renewed every 1 to 2 years; usually no examination is required. However state may require continuing education for renewing the license. Now-a-days a large number of schools, and training institutions have come up to train prospective students in real estate business. And many offices also ask for graduates who give formal training in real estate business and then absorb them as agents in their own offices.

Job outlook:

Employment of real estate broker and sales agents is expected to grow in the next decade because of the increasing need of housing for growing population. However, this is going to be limited by the increasing use of internet. Like prospective customers may even do net surfing to find their interested property.
This profession is relatively easy to enter but somewhat difficult to establish for the beginners because they might face heavy competition from the more experienced and established people in the industry. Moreover this industry is sensitive to economic swings.

Salary:

The median annual salary of real estate agents, including commissions were $35,670 in May 2004. The middle 50% earned between $23,500 and $58,110 a year. The lowest 10% earned less than $17,600 and the highest 10% earned more than $92,770. Median hourly earnings in the industries employing the largest number of real estate sales agents in May 2004 were:

Residential building construction     $54,770
Offices of real estate brokers and agents              $37,970
Activities related to real estate                  $32,460
Lessors of real estate                                     $25,840

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:

Residential building construction $49,620
Land subdivision $44,410
Offices of real estate agents and brokers $41,320
Activities related to real estate $36,410
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:

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