Buying or selling property is not a straightforward process, and can become quite complex as sellers negotiate reasonable prices with their buyers, and vice versa. Real estate agents bring in their knowledge of the residence’s overall value to consult buyers and sellers on the price negotiation. Moreover, they help arrange the purchase of mortgages or other loans from the bank, since many people are unable to pay for their homes upfront.
When real estate agents are not in the process of closing a sale, they search for residential properties to sell. They first locate a residence that may be for sale, and receive permission from the sellers to put up a listing for that home at their real-estate business. Finally, they assign a market price to that home after researching the values of surrounding homes, as well as taking into account the current economic environment. They then field inquiries about the house and meet with potential buyers at the prospective home, explaining to them the home’s assets and the worth for purchase. After they make a sale, they receive a commission for it.
Though they often receive direct inquiries about a house listed for sale, real estate agents also meet with undecided buyers for personal consultations. In these sessions, the agents learn what sort of residence is ideal for their clients, and the state of their personal finances. Learning this information helps the agent narrow down the listed homes that fit the clients’ profile. In addition, the agent and the clients sign a loyalty contract, which declares that the agent will be the sole person showing homes to the clients. Following this signing, the agent then presents lists of available properties that fall within the clients’ budget, and discusses with them possible means for financing the home. It may take several sessions until the clients can point out a house that interests them enough for an on-site tour.
As they give their clients the tour, the real estate agent attempts to engage clients’ interest in the home’s assets. These assets are targeted to the clients’ personal demographic category. For instance, the agent may emphasize the neighborhood’s low crime rate to a buyer who has children. Agents may also mediate with the buyers and sellers over the property price, using sales strategies to arrive at a price that is still profitable for the seller while affordable for the buyer.
Following the sale, the agent then arranges any legally regulated inspection sessions before the buyers take up residence. These inspections often include termite inspections, safety inspections, and chemical inspections. Furthermore, the agent contracts builders or interior designers to perform any repairs or additions to the residence before the closing date of the contract.
Residential real estate jobs require a college education, practical training, and licensure for both brokers and agents. In college, real estate agents take courses in real estate, business, finance, economics, and law. They often earn bachelor’s degrees in real estate. Moreover, there are many real estate professional associations, which are members of the National Association of Realtors, and sponsor real estate courses for both beginning and advanced agents.
All 50 U.S. states mandate licensure for both real estate brokers and agents. To obtain licensure, agents pass a written examination that varies in comprehensiveness depending on whether it is for a broker or an agent. Most states require between 30 to 90 classroom hours for an agent to receive a general sales license, while they require between 60 and 90 hours of training and 1-3 years of practical experience for broker licensure. Other states, furthermore, waive a portion of these requirements if the agent has a bachelor’s degree in real estate.
Even though education and training requirements are clear-cut, real estate agents are fundamentally sales people and must exercise the personal charm, credibility, reliability, and confidence that real-estate sales jobs demand. They also perform continual research on the communities in which they serve, paying close attention to local property value, demographics, and average income levels of residents.
The yearly salary for real estate agents is about $40,000. Conversely, real estate brokers earn about $61,000. These amounts include the total commissions agents receive for either listing a property for sale, making a sale, or both. Agents can advance to higher salaries by the amount of experience and sales records, though economic changes also affect their earnings. However, successful brokers who work for large, urban real-estate firms can earn a potential of $100,000 or over.
Agents and brokers are poised to go through average job growth in the next decade. Newer technology will dampen job growth because it gives citizens access to property listings without the aid of a real estate agent. Moreover, job growth is severely limited by economic recessions that decrease property sales. However, determined real estate agents who have licensure, sales talent, practical training, and excellent personal contacts are more likely to succeed in their job search.
