Do you have great people skills and proven sales ability? Do you consider yourself to be a self-starter? Does the idea of becoming an entrepreneur appeal to you? If you answered yes to all of these questions, you just might want to consider a career in real estate. Beyond just selling houses, today’s real estate profession offers a number of different career choices, each focusing on a different aspect of the business.
For anyone interested in breaking in to real estate sales, the first step is to get licensed. The licensing exam is actually the culmination of a training course, and includes both general and state-specific information. Each state has different requirements and standards, and regulates the exam independently. For specific information on your state’s requirements, enter “real estate license (your state)” in your favorite Internet search engine. There are a variety of different informational as well as commercial sites offering an excellent overview of the process. You might also contact one of your local real estate agencies and ask some questions regarding your state’s licensing policies. Agencies are often looking for new talent and are usually happy to answer your questions
Once you obtain your license, you must go to work for either a commercial or residential agency, as a real estate agent. You cannot sell real estate on your own until you are a licensed broker. As an agent, your job will be to represent the seller and find a buyer for his or her home. Commercial real estate agents represent business owners selling or leasing office buildings, stores, malls and other types of commercial property. A successful agent will learn as much as he or she can about the potential buyer and match his or her needs with appropriate property. Knowing what the customer wants and how much he or she can realistically afford to spend helps make sales happen. A big part of the job is attracting buyers to the properties that you have listed. This is done through advertising, canvassing, and following up the leads.
Although agents work for an agency, they are essentially an independent entity, and split any commissions with that agency. Because real estate agents are paid on a commission-only basis, you will, most likely, not see much in the way of income for the first six months. Use this training period to build your contact file and learn as much as you can about the market in which you are working. Remember, although you are working for a specific broker, you are actually running your own business and are responsible for generating your own income. The effort that you put forward will directly affect your earning potential.
As a beginner, expect to start at the bottom and work your way up. You will be assigned the “graveyard” shift and be expected to make cold calls and follow up on leads. The name of the game is obtaining listings. When a property is sold, the agent who sells it splits the commission with the agent who listed it. If you sell a property that you have listed, obviously, you will make more money. You also may spend some time with another agent or broker, attending open houses and other events.
As you build your reputation, you will get more referrals - both buyers and sellers - and potential customers will call you directly. Over time, your skills will get sharper and your closing ratio will increase. As your sales increase, obviously, so will your commissions. It is at this point that many people make the decision to take the next step in the business and become a broker.
The duties of a real estate broker are similar to those of an agent. Brokers list and sell property but their duties also include supervising agents, advertising, and detail work of the agency. In order to open an agency, the proprietor must be a licensed broker.
To become a broker, you must take advanced real estate courses as required by your state, and then pass another exam. As with agents, each state has its own rules and regulations regarding becoming a real estate broker. Many real estate brokers are also mortgage brokers, offering financing options to potential buyers as an enticement.
Another, less visible career choice in the real estate field is that of a real estate appraiser. An appraiser determines the “real” value of a piece of property. The lending institution uses this information to determine whether or not to qualify a buyer for a mortgage. An appraiser might work for the bank but can also be an independent agent working for an appraisal firm. Appraisers are also called upon to determine the value of a house when the owners apply for re-financing or a home equity loan.
Currently, most appraisers use what is known as “comparable value” as the foundation for determining a property’s value. They look as sales of similar property in the same vicinity and, after factoring in the condition of the property, calculate the dollar figure.
Appraisers who provide services where federally funded loans are involved must be licensed. Most states now require licensing for all appraisers, but, as is the case with other licenses, each state has different requirements. Generally, a fifteen-hour course is mandatory prior to licensing. Most appraisers begin their careers working for an appraisal company, training on the job. Once an individual has worked in the field for two to three years, he or she often will open their own firm.
Another career option is that of property manager. Owners of large apartment complexes, office buildings, malls, and other commercial properties often hire an individual to acts as a liaison between the owner and the tenants. The property manager negotiates leases, collects rents, deals with maintenance issues (or staff), and keeps the property operating up to the owner’s standards. As with other real estate career options, being a property manager draws upon a person’s people skills and ability to negotiate.
Property managers are not necessarily licensed, but there are training programs available for those interested in learning the business. Again, the best training is on the job training, working for a property management firm.
If you have cash and/or decent credit, it is still possible to make money as a real estate investor. Unlike stocks or bonds, real estate is one investment that, normally at least, does not decrease in value. Invest in multiple family dwellings or duplexes to start. Consider a two-family house where you live in one unit and rent the other. One of the more fashionable trends in real estate is known as “flipping” property. People buy a house, renovate it and then sell it at a profit, using the money from the sale of that house to buy another. This is not necessarily a career, but certainly a way to make money and build your investments towards retirement.
People will always need houses in which to live. A career in real estate offers individuals the chance to control their own financial destiny as well as to build entrepreneurial skills. There’s money to be made. All it takes is drive and ambition.
