Real Estate Careers: Brokers and Agents
First, you probably want to understand the difference between an agent and a broker. The agent is someone who can assist buyers and sellers in the real estate marketplace. Brokers, on the other hand, can own their own business and can employ agents who do this work on their behalf. Most brokers start off their careers as agents.
Keep in mind that you will need a license in your state to practice as either a broker or an agent. The specific requirements for obtaining that license vary from state to state. However, you will need at least a high school diploma. Having a college degree is definitely advisable. Some of the best majors would include marketing and business or even pre-law because these studies would help prepare you for the work ahead. Agents need 30 to 90 hours of training in approved courses while brokers must have 60 to 90 hours as well as 1 to 3 years experience as an agent who has made sales. You will need to pass a written examination the first time you are licensed and your license has to be renewed every couple of years but no test is given at the time of renewal in most states.
If you plan to become a broker, remember that having some background in business management would be a good idea. Brokers are most frequently running their own businesses. Both agents and brokers need to be excellent communicators and must be good with people. No one is going to succeed in real estate careers without these fundamental characteristics.
Between 2006 and 2016, the job growth for brokers and agents is expected to be about 11% which is about average. Of course, those figures were first calculated by the U. S. government in 2006 and may be different, especially in some areas, due to the housing crisis. Because this is a field which can be entered, left, and returned to as needed or desired, the job prospects tend to fluctuate greatly.
The average salaries for agents and brokers in 2006 were almost $40,000 and just over $60,000, respectively. Those numbers do include commissions which are the bulk of most these real estate careers' earnings. However, the pay ranges varied a great deal. For both agents and brokers, the top earnings exceeded six figures while some agents earned around $20,000 a year. Obviously, a big factor in your earning potential is the value of the homes you are able to sell.
Real Estate Careers: Appraisers and Assessors
Both appraisers and assessors do essentially the same job: they estimate the value of real estate. However, they usually do their jobs for different purposes and for different clients. Assessors make their estimates on behalf of government departments which use the information to calculate property taxes and other fees for the property owners. Appraisers use their skills to help buyers, sellers, and owners understand how much their home is worth so they can use as collateral for loans or can complete a fair transaction for the property in question.
Assessors are normally hired by local governments. Appraisers, on the other hand, are either self-employed or are employed through lending institutions, such as banks. Those appraisers who are self-employed tend to work more hours than other appraisers. However, the bulk of all the inspection work is done during the day and during the week. The written reports can be created at a later time but are one of the more time-consuming elements of the job.
The majority of appraisers and assessors do hold some type of bachelor's degree. However, this education is separate from what needs to be completed in order to be recognized as officially practicing these real estate careers in a specific state. The more specific required courses can usually be completed locally through programs at smaller colleges or other organizations. For both careers, on-the-job training is essential. Appraisers typically get their experience by taking jobs working for other appraisers. Assessors get their experience by working in this department of the government but at a lower level or in a smaller city.
While licensing requirements vary by state, the Federal government has a relatively new law on the books that requires appraisers who are involved in transactions that are going to include a loan amount over $250,000 and which will be somehow connected to the federal government (such as an FHA loan) to have a state-issued license.
Because so many current appraisers and assessors are entering retirement, these real estate careers are expected to grow faster than average. The rate is supposed to be 17% between 2006 and 2016. If you are just getting started in the field, you should consider beginning in a smaller city before trying to break into major real estate markets where entry-level positions are in great demand.
Appraisers and assessors earned around $40,000 per year in 2006. Government-employed assessors earned slightly less than those who worked for private companies. The salary range for both of these real estate careers was between $24,000 and $86,000.
Conclusion
At the end of the day, real estate careers such as the ones discussed above make it possible for those investors and landlords to earn the money they do. While these positions may not be quite as lucrative, if you have the experience and reputation needed to be successful you'll be able to establish yourself firmly in the industry.
