Education and Certification Requirements
To become a broker or real estate agent, every state requires that a person who is termed a real estate broker or real estate agent be licensed. To be considered for a real estate agent license, the applicant must have a high school diploma and pass a written exam. Many community colleges and universities provide classes to assist applicants in passing the written exam.
For job seekers considering a position in commercial or industrial real estate, especially in large cities such as New York, it is also beneficial if you also have a bachelor's degree, preferably in business, finance or a related field. For some specialized positions in commercial real estate, a legal background is also helpful.
To receive a broker's license, a real estate agent needs to gain experience in the business over a period of years under another broker and then take the written exam. When the applicant passes the real estate broker's exam, they are then qualified to open an office and hire agents.
Job Responsibilities
The job responsibilities of a broker and agent have similarities within a specialization. Commercial brokers and agents have similar tasks, as do industrial brokers and agents, and rental brokers and agents. The main differences between the fields are the types of customers that each broker or agent generally services.
In New York, commercial rental agents and brokers may specialize in a type of customer, or in a specific building. Ensuring that they fully understand the nature of the work a commercial client engages in is critical to a successful contract. Industrial brokers and agents also work with all sizes of manufacturers. By understanding the business trends in the northeast, as well as by industry, a successful broker or agent should be able to locate the perfect structure for an industrial client. Because of the complex nature of business in New York City, the agent should be familiar with the permit and zoning process to ensure that there are no unexpected challenges.
Brokers and agents who specialize in rental space also need to understand the specific laws that govern rental contracts in the State of New York, as well as the nuances in each area.
Brokers who run real estate firms also interview candidates who would be agents in the firm. Brokers may also need to work with advertising agencies and public relations firms to ensure that there is a steady stream of buyers and sellers who are aware of the prior successes of the firm. Brokers also have the added responsibility of negotiating the major deals with the largest customers. If a commercial real estate agent is working on the sale of an office tower, the complexity of the transaction may require the broker, the finance team, as well as the legal team to assist the buyer and seller in finalizing and closing the transaction.
Skills
Some things that are consistent between all specializations are certain specific skills. An agent needs to be able to be an excellent communicator, as well as have attention to detail. Having a firm understanding of the financial systems is also important. If there is specific lending or a financial opportunity available to make the deal work, then a successful agent will be able to find them for the buyer.
Brokers who run real estate firms also must have an excellent understanding of marketing, business trends in the area, as well as be able to spot talented agents to hire into the firm. Brokers may also need to develop excellent business networks with the top business leaders in the New York and New Jersey Metro Area, as well as around the surrounding counties.
Job Outlook
While the current real estate outlook in New York is somewhat soft in all sectors of real estate, the downturn has not hurt the city and surrounding areas as badly as it has other metropolitan areas. With the latest restructuring of the financial district from the closings and mergers of banks and investment houses, there may be additional risk in the commercial real estate and office rental specialties later in 2008.
Career Path
Typically, the entry point to real estate is to become an agent. A real estate agent, once having passed the written exam and hired by a licensed broker is ready to find sellers and buyers for properties. After a few years, some agents will take their broker's exam. At that point, the agent is able to work on his or her own. The advantage is that the new broker does not have to split a commission, and is able to hire agents and set up an office.
Competition for buyers, sellers and renters is fierce in New York. Many agents stay in the same area to build a reputation and a client base to help increase the stability of the commission flow.
Salary Range
Brokers and agents primarily earn their income from commissions on the buying selling and renting of property. While commissions may range widely from one to 2% to over 6% of the value of the transaction, many times the commission has to be divided between many parties. For larger, more complex transactions, the dollar value of the total deal may be higher, but there may be several agents and brokers involved who will receive a percentage of the commission.
Typically, as in other areas of the country, the broker and agent split the commission. If the selling agency is different from the buying agency, four commission splits would normally occur.
The median annual income for salaried real estate sales agents in the United States, including commissions, was $39,760 in 2006.
Conclusion
While New York, like the rest of the nation is undergoing the real estate storm, the underlying economic health of the area looks promising. With the current evolving issues facing the financial firms, there are areas of concern. However, compared to other real estate markets, New York holds the promise of an earlier turn around.
