Do you enjoy working with people? Are you sales orientated, self-motivated, and willing to work nights and weekends? Do you want to work for yourself or own your own business in growing, dynamic industry? If the answers to these questions is yes, you might have a promising future as a real estate agent or broker.


Nature of the Work

As you probably know, one of the most complex and important financial events in peoples’ lives is the purchase or sale of a home or investment property. Because of this complexity and importance, people usually seek the help of real estate agents and brokers when buying or selling real estate.

Real estate agents and brokers have a thorough knowledge
of the real estate market in their community. They know which
neighborhoods will best fit clients’ needs and budgets. They are
familiar with local zoning and tax laws and know where to obtain
financing. Agents and brokers also act as intermediaries in price
negotiations between buyers and sellers.

Real estate agents are normally independent sales workers who
provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent’s sale of the property.

Brokers are independent businesspeople who sell real estate owned by others; they also may rent or manage properties for a fee. When selling real estate, brokers arrange for title searches and for meetings between buyers and sellers wherein details of the transactions are agreed upon and the new owners take possession of the property. A broker may help to arrange favorable financing from a lender for the prospective buyer; often, this makes the difference between success and failure in closing a sale.

In some cases, real estate agents and brokers assume primary responsibility for closing sales; in others, lawyers or lenders do so. Brokers supervise agents who may have many of the same job duties. Brokers also manage their own offices, advertise properties, and handle other business matters. Some combine other types of work, such as selling insurance or practicing law, with their real estate business.             

Besides making sales, agents and brokers must have properties
to sell. Consequently, they spend a significant amount of time obtaining listings—agreements by owners to place properties for sale with the firm. When listing a property for sale, real estate agents and brokers compare the listed property with similar properties that recently sold, in order to determine a competitive market price for the property.

Most real estate agents and brokers and sales agents sell residential property. A smaller number, usually employed in large or specialized firms, sell commercial, industrial, agricultural, or other types of real estate.

Each of these specialties requires knowledge of that particular type of property and clientele. Selling or leasing business property requires an understanding of leasing practices, business trends, and the location of the property. Agents who sell or lease industrial properties must know about the region’s transportation, utilities, and labor supply.
Whatever the type of property, the agent or broker must know
how to meet the client’s particular requirements.

Before showing residential properties to potential buyers, real estate agents meet with them to get a feeling for the type of home the buyers
would like. In this pre-qualifying phase, the agent determines how much the buyers can afford to spend. In addition, the agent and the buyer usually sign a loyalty contract which states the agent will be the only one to show houses to the buyers.

An agent or broker then uses a computer to generate lists of properties for sale, their location and description, and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties in which they are interested. With a computer, buyers can view interior and exterior images or floor plans without leaving the real estate office.

Typically, agents will meet several times with prospective buyers to discuss and visit available properties within a specified geographical. Agents identify and emphasize the most pertinent selling points. To a young family looking for a house, they may emphasize the convenient floor plan, the area’s low crime rate, and the proximity to schools and shopping centers.

If bargaining over price becomes necessary, agents must follow their client’s instructions carefully and may have to present counteroffers in order to get the best possible price. Once both parties have signed the contract, the real estate agent or broker must make sure that all special terms of the contract are met by the closing date. For example, the agent must make sure that the mandated and agreed-upon inspections, including that of the home and termite and radon inspections, take place. Also, if the seller agrees to any repairs, the broker or agent must see that they are made.

When a buyer is ready to purchase a property, the real estate agent or broker drafts a contract that details the terms of the buyer’s offer.


Working Conditions

Working conditions for real estate agents have changed in recent years. Advances in telecommunications and the ability to retrieve data about properties over the Internet allow many agents to work out of their homes instead of real estate offices.

But even with this convenience, much of the time of these workers is spent away from their desks—showing properties to customers, analyzing properties for sale, meeting with prospective clients, or researching the state of the market.

As an agent or broker, you can expect to work more than a standard 40-hour week. Agents usually work evenings and weekends and are always on call to suit the needs of clients. Business usually is slower during the winter season. Although the hours are long and frequently irregular, most agents and brokers have the freedom to determine their own schedule. Consequently, they can arrange their work so that they can have time off when they want it.


Employment

In 2004, real estate agents held about 320,000 jobs in the US, while brokers held about 110,,000. Many worked part time, combining their real estate activities with other careers. Almost 6 out of 10 real estate agents and brokers were self-employed. Real estate is sold in all areas, but employment tends to be concentrated in large urban areas and in smaller, but rapidly growing communities.

Most real estate firms are relatively small; indeed, many are one person businesses. By contrast, some large real estate firms have
several hundred agents operating out of numerous branch offices.
Real estate agents and brokers are older, on average, than most other workers. Historically, many homemakers and retired
persons were attracted to real estate sales by the flexible and part time work schedules characteristic of the field. These individuals could enter, leave, and later reenter the occupation, depending on the strength of the real estate market, their family responsibilities, or other personal circumstances.


Training and Other Qualifications

In every State and the District of Columbia, real estate agents brokers are required to be licensed. Prospective agents must be high school graduates, at least 18 years old, and pass a written test. The examination—more comprehensive for brokers than for agents— includes questions on basic real estate transactions and laws affecting the sale of property.

In addition, most states require candidates for the general sales license to complete between 30 and 90 hours of classroom
instruction. State licenses typically must be renewed every 1 or 2 years, usually without having to take an examination. However, many states require continuing education for license renewals. Prospective agents and brokers should contact the real estate licensing commission of the state in which they wish to work in order to verify exact licensing requirements.

As real estate transactions have become more legally complex,
many firms have turned to college graduates to fill positions. A large number of agents and brokers have some college training. College courses in real estate, finance, business administration, statistics, economics, law, and English are helpful. For agents who intend to eventually start their own company, business courses such as marketing and accounting are as important as those in real estate or finance.

For real estate agents, personality traits are equally as important as academic background. Brokers look for applicants who possess a pleasant personality, are honest, and present a neat appearance. Maturity, tact, trustworthiness, and enthusiasm for the job are required in order to motivate prospective customers in this highly competitive field.

Agents should also be well organized, detail oriented, and have a
good memory for faces, names, and business particulars.
Those interested in jobs as real estate agents often begin in their
own communities. Their knowledge of local neighborhoods is a
clear advantage.

Many real estate firms offer formal training programs for both beginners and more experienced agents. Larger firms usually offer more extensive programs than smaller firms. In addition, more than a thousand universities, colleges, and junior colleges offer courses in real estate. Many local real estate associations that are members of the National Associationof Realtors also sponsor courses covering the fundamentals and legal aspects of the field. Advanced courses in mortgage financing, property development and management, and other subjects also are available through various affiliates of the National Association of Realtors.

Advancement opportunities for agents may take the form of
higher rates of commission. As agents gain knowledge and expertise, they become more efficient in closing a greater number of transactions and increase their earnings. In many large firms, experienced agents can advance to sales manager or general manager.


Career Outlook

Employment of real estate agents and brokers is projected to
grow more slowly than the average for all occupations through the year 2012. Increasing use of information technology will continue to raise the productivity of agents and brokers, limiting the potential for job growth to a certain extent.

Today, prospective customers often can conduct their own searches for properties that meet their criteria by accessing real estate information on the Internet. Real estate companies often use computer-generated images to show houses to customers without leaving the office. In addition, cell phones can send and receive large amounts of data, allowing agents and brokers to become more efficient and to serve a greater number of customers.

That being said, most people still want and need the services of real estate agents and brokers to handle the actual sale. The use of technology may eliminate some marginal agents, such as those practicing real estate part-time or temporarily between jobs. Such workers generally are not able to compete with full-time agents who have invested in the technology.

Changing legal requirements, such as disclosure laws, may also dissuade some who are not serious about practicing full time from continuing to work part-time. Real estate agents and brokers can expect to see some employment growth due to the increasing housing needs of a growing population, as well as the perception that real estate is a good investment. Low interest rates should continue to stimulate sales of real estate, resulting in the need for more agents and brokers.

As an occupation, real estate is relatively easy to enter and is attractive, due to the flexible working conditions, the high interest in, and knowledge of, local real estate markets that entrants often have, and the potential for high earnings. Therefore, although gaining a job as a real estate agent or broker may be relatively easy, beginning agents and brokers may face competition from well-established, more experienced agents and brokers in obtaining listings and in closing a sufficient number of sales.

Conclusion

In conclusion, well-trained, ambitious people who enjoy selling, especially those with extensive social and business connections in their communities, should have the best chance for success in this dynamic industry.

But also be aware that employment of real estate agents and brokers is often sensitive to swings in the economy, especially interest rates. During periods of declining economic activity and increasing interest rates, the volume of sales and the resulting demand for sales workers naturally falls. As a result, the earnings of agents and brokers decline, and many work fewer hours or leave the occupation altogether.

 

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