Careers in the Real Estate Industry
The real estate industry offers many careers choices from selling and buying homes to loan products. Appraisers can affect the futures of entire towns and cities. Brokers can smooth over multi-million dollar deals. Mortgage lenders make the entire enterprise affordable for the masses of people who would otherwise not be able to become homeowners.
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Significance
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Most real estate companies specialize in particular types of property within a geographical area. For example, most commercial real estate brokers only handle office space in a certain region. They may be a division of a larger real estate company, but otherwise, the difference in the clients and in judging the properties involved requires different skill sets. The most important abilities involved are that of judging properties, customer service and salesmanship.
Function
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Real estate can be a problematic and risky product to sell. From providing a solid investment vehicle to a consumer to the disadvantages of property damage and market fallout, there are risks and failures. Combine that with the risk of taking on a mortgage, and you get what is often, a hard sell. Becoming a real estate broker might seem like an easy job, but it's actually one of the most challenging sales jobs that a person can have. Those commissions have to be fought for. Real estate brokers must acquire their license first by passing an exam issued by their state. Many states, such as California, also require at least two years of experience as a real estate sales agent before taking the exam to become a broker.
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Identification
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A real estate broker acts as a third party intermediary between buyers and sellers of real estate. They help market homes for sellers, often contracting out to other companies to improve the appearance of the home to increase the selling price. Brokers must have at least a minimum level of knowledge in state and federal real estate law to ensure that any transactions that they make comply with all relevant regulations. A sales agent does not require a license, and they generally work to assist a licensed broker in encouraging interested buyers to purchase a home that the broker has been contracted to assist in selling. Most sales agents are only paid on commission, and as such must be able to sell houses well in order to make a significant career out of it.
Features
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Most real estate companies primarily deal in home purchases and sales. Many broker rentals as well, primarily in crowded real estate markets like upscale urban areas. There are real estate companies will purchase distressed properties from homeowners. The company will then renovate the house and sell it to another buyer at a higher price. Appraisers play a key role throughout the industry in determining fair market prices for any property involved in any kind of transaction. In some cases, brokers and sales agents will conduct their own independent appraisal; in most cases, they will also have a home appraisal license for their state.
Considerations
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The mortgage industry is another business sector all in itself. Mortgage lenders employ many sales agents, marketers, loan agents, financial planners, accountants and to run their operations. Real estate brokers need solid relationships with banks and lending companies to acquire good good rates for their customers. If there is not an adequate mortgage on the table, the broker isn't going to make a sale.
Benefits
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The job market in the real estate is extraordinarily fickled and unusually dependent on macroeconomic factors like the interest rates set by the Federal Reserve. When interest rates are low and credit is flowing, the real estate industry expands. It becomes easier for brokers to win large commissions because there is an abundance of credit. When access to mortgages declines, so does the industry, as there isn't enough free flowing money to sustain all of the careers that rely on it.
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Resources
- Photo Credit MichiganMoves, Flickr
