Not everyone is successful in this highly competitive field; many beginners become discouraged by their inability get listings and to close a sufficient number of sales. Lacking financial sustenance and motivation, they subsequently leave the occupation. Well-trained, ambitious people who enjoy selling could have the best chance for success.
Employment growth in this field will stem primarily from increased demand for home purchases and rental units. Shifts in the age distribution of the population over the next decade or so will result in a large number of persons in the prime working ages (25 to 54 years old) with careers and family responsibilities. This is the most geographically mobile group in our society and the one that traditionally makes most of the home purchases. As their incomes rise, they also may be expected to invest in additional real estate.
Increasing use of technology and electronic information may increase the productivity of agents, brokers, and appraisers as the use of computers, faxes, modems, and databases becomes more commonplace. Some real estate companies are using computer generated images to show houses to customers without even leaving the office. These devices enable one agent to serve a greater number of customers. Use of this technology may eliminate some of the more marginal agents such as those practicing real estate part-time or between jobs. These workers will not be able to compete as easily with full-time agents who have invested in this technology.
Employment of real estate agents, brokers, and appraisers is sensitive to swings in the economy. During periods of declining economic activity and tight credit, the volume of sales and the resulting demand for sales workers may decline. During these periods, the earnings of agents, brokers, and appraisers decline, and many work fewer hours or leave the occupation.
Earnings
Commissions on sales are the main source of earnings of real estate agents and brokers-few receive a salary. The rate of commission varies according to the type of property and its value; the percentage paid on the sale of farm and commercial properties or unimproved land usually is higher than that paid for selling a home.
Commissions may be divided among several agents and brokers. The broker and the agent in the firm who obtained the listing generally share their part of the commission when the property is sold; the broker and the agent in the firm who made the sale also generally share their part of the commission. Although an agent's share varies greatly from one firm to another, often it is about half of the total amount received by the firm. The agent who both lists and sells the property maximizes his or her commission.
Income usually increases as an agent gains experience, but individual ability, economic conditions, and the type and location of the property also affect earnings. Sales workers who are active in community organizations and local real estate associations can broaden their contacts and increase their earnings. A beginner's earnings often are irregular because a few weeks or even months may go by without a sale. Although some brokers allow an agent a drawing account against future earnings, this practice is not usual with new employees. The beginner, therefore, should have enough money to live on for about 6 months or until commissions increase.
Related Occupations
Selling expensive items such as homes requires maturity, tact, and a sense of responsibility. Other sales workers who find these character traits important in their work include motor vehicle sales workers, securities and financial services sales workers, insurance agents and brokers, travel agents, and manufacturers' representatives. Other appraisers specialize in performing many types of appraisals besides real estate, including aircraft, antiques and fine arts, and business valuations.
Employment
Many of the real estate agents, brokers, and appraisers work part-time, combining their real estate activities with other careers. Most are self-employed, working on a commission basis.
Most real estate and appraisal firms are relatively small; indeed, some are a one-person business. Some large real estate firms have several hundred real estate agents operating out of many branch offices. Many brokers have franchise agreements with national or regional real estate organizations. Under this type of arrangement, the broker pays a fee in exchange for the privilege of using the more widely known name of the parent organization. Although franchised brokers often receive help in training salespeople and in running their offices, they bear the ultimate responsibility for the success or failure of the firm.
Real estate is sold and appraised in all areas, but employment is concentrated in large urban areas and in smaller but rap-idly growing communities.
Working Conditions
Although real estate agents, brokers, and appraisers generally work in offices, much of their time is spent outside the office-showing properties to customers, analyzing properties for sale, meeting with prospective clients, researching the state of the market, inspecting properties for appraisal, and performing a wide range of other duties. Brokers provide office space, but agents generally furnish their own automobiles.
Agents, brokers, and appraisers often work more than a standard 40-hour week. They often work evenings and weekends to suit the convenience of their clients.
Many real estate appraisers voluntarily earn professional designations that represent formal recognition of their professional competence and achievements. A number of appraisal organizations have programs that, through a combination of experience, education, and examinations, lead to the award of professional designations. These professional designations are desirable because requirements for them are more stringent than state standards.
Advancement opportunities for agents often take the form higher commission rates and more and bigger sales, both of rich increase compensation. This occurs as agents gain knowledge and expertise and become more efficient in closing a greater number of transactions. Experienced agents can advance in many large firms to sales or general manager. Persons who have received their broker's license may open their own offices.
As real estate transactions have become more complex, involving complicated legal requirements, many firms have turned to college graduates to fill positions. A large number of brokers and appraisers have some college training, and the number of college graduates selling real estate has risen substantially in recent years. However, personality traits are as important as academic background. Brokers look for applicants who possess a pleasant personality, honesty, and a neat appearance. Appraisers should have good judgment, writing, and math skills.
Persons interested in beginning jobs as real estate agents en apply in their own communities, where their knowledge of al neighborhoods is an advantage. The beginner usually learns the practical aspects of the job, including the use of computers to rate or list available properties or identifies sources of finance, under the direction of an experienced agent.
