Broker or Sales Agent Career in Real Estate
The primary role of a broker of a sales agent in real estate is in renting, selling or buying property for clients. They perform duties like study property listings, accompanying clients to sites to property, interviewing prospective clients, discussing sale conditions, and drawing up contracts in real estate. The career also includes having to deal with agents representing buyers (Dorwart, 2016). Some of the job’s responsibilities include presenting purchase offers to the sellers in consideration and negotiation prices and other terms of sales as well as acting as an intermediary in carried negotiations between sellers and buyers, most being a representative of one or the other. A sales agent also compares a property with substantially similar properties and the ones that have sold recently in determining its competitive price in the market, as well as appraising property values. Sales agents also advise clients on the conditions in the market, mortgages, legal requirements, costs, and other related matters, as well as advising clients in real estate (Ariyawansa, 2009). They also promote sales of real estate properties via advertisements, participation in the many listing services, and open houses, among other responsibilities.
The number of active real estate brokers and sales agents has been rising steadily from 172, 000 in 2014. Even with a few stumbles since low numbers, sales agents have been increasing 207, 000 by July 2019. In history, about 1.5 sales agents have actively been practically per active broker. The ratio has been growing from a hugely inflated population of agents in the2000s to a number as high as 2.8 agents per broker (Ariyawansa, 2009). The ratio fell in the Millennium Boom aftermath, but its direction was reversed in 2014, and it currently sits at about 2.3 active agents per broker.
With the volume of homes continuing in slumping and home prices increasing via the second tenure 2019, it is expected that discouraged agents will slowly be dropping out from the active population. The sales agents’ numbers are expected to start stabilizing after the next economic recession and will be expected to arrive by the mid months of 2020. In the course of the recovery, sales agent numbers in California will slowly be ascending back towards the peak numbers noted in 2009. It can be expected that the next big wave of the new licensees may arrive after 2021, as returns of public confidence through increased volumes of home sales and added jobs (Dorwart, 2016).
In the course of the real estate business entering its boom phase in the market cycle by the mid months of the 2000s, there was a noted new arrival of new sales agents with the somewhat optimistic belief that extra income was to be gained working in real estate. By 2006, after the boom’s peak, there was an aggregate of 2.8 active agents for every active broker (Crossman, 2020). The impressive number of agents came with an inflated market, with little sense and the unsustainable prices fundamentally.
Sales agents in real estate are also currently left with the question as to whether the current ratio will last after the decrease in the licensee population. There is little to no likelihood. The boost in the home prices experienced from 2012 to2014 led to increased optimism for sales agents. Such a perception of a healthy real estate market as a result of price increase has lured more people looking for career opportunities towards becoming real estate agents (Crossman, 2020). New brokers and sales agent licensing jumped in 2013 and maintained that number at its highest levels since the housing crisis fallout by 2008.
Insufficient regulations in lending to protect the society and public institutions from harm have created a mentality that will eventually lead to other destructive booms in real estate. In the course of this happening, possibly between 2019 and 2021, sales agents are likely to multiply once faster, and standards are expected to diminish. It may take the DRE’s responsibility completely to protect credible real estate sales agents from adverse licensee conduct. In doing so, they will need to tighten up the agent licensing exam in controlling a too-permissive rate of passing (Dorwart, 2016). The move will indeed go a long way towards limiting the new agents to the most dedicated, qualified, and committed.
Some of the exciting things about being a sales agent in real estate are that the career can be approached from numerous different areas. It is easy to use one’s skills to analyze and project cash flows for many developments, large transactions for a broker for institutional clients, or exercising one’s entrepreneurial spirit as a property owner developing exciting and new ventures. Before graduation, some of the beginning decisions one may need to make include determining the sectors in real estate one may be interested in (Dorwart, 2016). It is safe to assume this time as the perfect one for some self-evaluation, as well as personality analysis in assisting in determining the area would best be suited to one’s profile.
Once an aspirer determines their personality traits and requirements in compensation, they can bridge the characters to the basic skill set required for every area of specialization in real estate. It’s also important to note that real estate sales agents representing sellers, buyers, tenants or owners need to be licensed by the states where they are working. A majority of states require a test before issuing a sales license, or for some advanced brokers, the license can be based on educational requirements and experience (Ariyawansa, 2009).
Residential sales agents usually represent sellers and buyers in exchange for a payable fee after completion of sales. The productivity-based segments need uncertain and long hours, often leading to a high dropout rate of agents. Being a sales agent commercially needs one to be a people’s person and one to have knowledge in conducting professional business. A majority of successful sales agents require at least an undergraduate degree. Many have also had a graduate degree in business, and this enables them to be corporate with companies, intuitional sellers and buyers, tenants, foreign and domestic business entities and various business clientele and sophisticated investment. A majority of commercial agents tend to be specializing in certain types of specific property like office, industrial, hotels, apartments or retail (Ariyawansa, 2009). Continued education has been availed via several of the trade association. A successful sales agent can earn compensation at an executive level. They have to carefully watch markets in anticipating economic trends impacting the industry of real estate.
As a sales agent or broker in real estate, one’s experience and education in the field may go a long way towards opening opportunities in a couple of areas in the industry they may not have considered. These may include construction and architecture segments in the real estate development process. Being a contractor or architect needs special education, licenses and experience, but there may be areas in the disciplines where their specific knowledge and training may qualify one for (Ariyawansa, 2009). Many major contracting and architectural companies have internal business marketing and development departments.
The positions may generally not need extensive knowledge in the involved industries in its various entry levels, even though in prospering and advancing the profession, there may need some basic knowledge (Ariyawansa, 2009). The development of business in this profession entails extensive participation and involvement in many industry-related companies, with a strong relationship in the construction and the real estate industry. In a couple of instances, one may become the “voice and face” of the company and may be responsible for customer relations, public relations, as well as other administrative functions like preparing, implementing and developing the market and business plans of the company.
For appraisal and consulting in real estate, appraises can be paid in estimating the property value after a systematic analysis of the property pieces, or according to a review of the discounted returns in the future. The valuation estimate needs a summary of the market the subject property piece needing appraising. Some appraisers function for various clients based on a fee paid, others being internal staff appraiser, giving out opinions on the value in the course of their employers—a majority of specializing in residential property, or the certain commercial property types. Federal laws need any required appraisal in the course of government getting involved indirectly or directly have to be done certified appraiser (Crossman, 2020). Certification may be done in two different levels, general and residential, and can be based on a mixture of experience and tests. Designations in a trade association, ones that need more education and experience compared to the state certification process, also are required by various clients, with the highest of which is the Member of the Appraisal Institute (MAI).
All the leading companies need to deal with the needs of real estate. Corporate real estate management includes maximizing the company’s value of resources committed to space needs. After being looked at as a cost center, managers in real estate have now been attempting to improve the efficiency of real estate usage by a consideration of “just-in-time” office that shares and enhancing productivity in the workplace. Additionally, heads of company real estate are often copped with an analysis of the site. These include buying versus leasing decisions, disposition and acquisition, sale-leaseback and portfolio refinancing arrangements, appeals in property tax and various choices in facility management.
Brokers and sales agents also deal with property management. It involves maximizing the net productivity or net revenues of property according to the management of tenant retention, rental flows, and contracting property operation. Operation of property includes cleaning, repairs and maintenance, property insurance, paying utilities, property taxes and others, reporting to the owners as well as overseeing resident or on-site managers. Property managers may usually be involved in facility management and leasing decisions ( Editorial Staff, 2019). The ones that manage the properties and are included in the disposition acquisition, financing and decisions in portfolio management are referred to as “asset managers.” A majority of managers begin as on-site managers and work closely with the tenants. It is safe to conclude that brokers and sale agents in real estate need to develop other additional strategic plans of competing, such as using the e-commerce real estate websites approach.
References
Editorial Staff . (2019, Apr 18). The rise and fall of real estate brokers and agents. Retrieved May 2, 2020, from https://journal.firsttuesday.us/the-rises-and-declines-of-real-estate-licensees/2983/
Ariyawansa, R. G. (2009, June ). Management of Real Estate Principles of Real Estate Development & Management. Retrieved May 12, 2020, from https://www.researchgate.net/publication/304580462
Crossman, J. (2020). GUIDE TO STARTING A CAREER IN COMMERCIAL REAL ESTATE. Retrieved May 12, 2020, from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=2ahUKEwjM1MP0-a_pAhUSlhQKHQXDA7sQFjAAegQIAhAB&url=http%3A%2F%2Fwww.crossmanco.com%2Fwp-content%2Fthemes%2Fcrossman%2Fpdfs%2FRealEstateCareer_UF.pdf&usg=AOvVaw07ThVjkpCG833p
Dorwart, J. (2016). Strategies for Real Estate Professionals to Compete. Retrieved May 12, 2020, from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=11&cad=rja&uact=8&ved=2ahUKEwjM1MP0-a_pAhUSlhQKHQXDA7sQFjAKegQIARAB&url=https%3A%2F%2Fpdfs.semanticscholar.org%2F0a43%2Fa1d7b983ea21e8527ea23028a12622c4d5b6.pdf&usg=AOvVaw3uNIXG-u09JmUWoAYGxdb7
Hansen, K. (2013, April 19). Do real estate agents have the happiest profession in America? Retrieved May 12, 2020, from https://www.bizjournals.com/phoenix/news/2013/04/19/do-real-estate-agents-have-the.html