The sale and rental of residential and commercial properties are handled by real estate agents and brokers. If they belong to the National Board of Realtors, brokers are called realtors; agents are realtor-associates. They also appraise, manage, or develop property. Some combine a real estate business with an insurance agency or law practice.
Real estate brokers employ real estate sales workers, or agents, to show and sell properties. Most real estate businesses sell private homes and other residential property. Some specialize in commercial or industrial property or handle farms and undeveloped land.
Before a property can pass from the seller to the buyer, a title search must be made to prove that there is no doubt about the seller's right to sell the property. This abstract of tide is performed by an abstractor or an abstract company. The abstract is a condensed history of the property which includes current ownership chain of tide (ownership); description of the property; and, in chronological order, all transactions that affect the property. These include liens, mortgages, encumbrances, tax assessments, and other liabilities. Abstractors work for real estate firms, title insurance companies, and abstracting companies or may be self-employed.
Agents obtain listings (properties to sell) by signing an agreement with the seller giving the agent and the real estate firm the right to represent the seller in disposing of the property. It is the agent's responsibility to locate a buyer by advertising and showing the property to interested people. If the buyer requests it, the real estate agent may help locate mortgage funds. In cases where the seller's asking price is higher than the buyer is willing to pay, the agent often acts as a negotiator to bring the sale to a successful conclusion. Agents also are present at closing when the property actually changes hands.
A successful real estate agent must be well versed in all local information relative to the type of real estate sold. An agent selling houses must know local tax and utility rates and the availability of schools, shopping facilities, and public transportation. A commercial or industrial property agent must be able to provide information on taxes, marketing facilities, local zoning regulations, the available labor market, and nearby railroad and highway facilities.
Most real estate salespeople are employed in relatively small businesses. Some large real estate firms employ several hundred agents in many branch offices, but five to ten persons is the usual number employed by a single real estate business. Many agents sell real estate on a part-time basis.
Brokers are independent business owners who are responsible for all business matters relating to the firm's function. Some brokers operate a one-person firm, doing all the selling themselves. A related job is real estate appraiser.
Places of Employment and Working Conditions
Real estate agents and brokers work throughout the country in communities of all sizes.
The working hours of real estate agents and brokers are irregular, and evening and weekend hours are the norm. These persons spend a great deal of time on the phone obtaining listings and are also responsible for the paperwork on the sales they handle.
Qualifications, Education, and Training
A pleasant personality, neat appearance, and tact are necessary qualities for a successful real estate agent. Sales ability along with a good memory for names and faces are very important.
Some real estate brokers prefer to hire college graduates with a degree in real estate or business, but most will hire high school graduates with sales ability.
All states and the District of Columbia require agents and brokers to be licensed.
A college degree is not necessary to obtain a license, but most states require at least 30 hours of classroom instruction. Local colleges, adult education programs, and correspondence schools offer the courses necessary to obtain a license, and many prospective real estate agents hold down a full-time job while studying to be a real estate agent. Many brokers hire real estate students as office assistants or rent collectors while they are preparing for the state licensing exam, but others hire only those who have already obtained a license.
Some colleges and universities offer an associate's or bachelor's degree with a major in real estate; several offer advanced education courses to agents and brokers.
A prospective agent must be 18 years old, a high school graduate, and pass a written test on real estate transactions and state laws regarding the sale of real estate to complete the licensing requirements.
Candidates for a broker's license must complete 90 hours of formal training, have a specified amount (usually one to three years) of real estate selling experience, and pass a more comprehensive exam. Some states waive the experience requirements if the candidate has a bachelor's degree in real estate.
Potential and Advancement
The Bureau of Labor Relations estimates that the demand for real estate brokers and sales agents will only grow by 3 percent between 2014 and 2024, indicating weak job opportunities for those in the field. Furthermore, anyone entering real estate should be aware that it is difficult to earn enough to be self-supporting when working on commission.
In large real estate firms, experienced agents can advance to sales manager or general manager. Experienced sales workers often obtain a broker's license and go into business for themselves. Others go into property management or appraising. Many successful agents prefer to continue selling because the financial awards are very good.
Income
The median annual salary for real estate brokers and sales agents was $45,610 in 2015, according to figures from the Bureau of Labor Statistics.
