If you want to pursue a career as a real estate agent or simply want to improve your knowledge within the real estate industry, you are in the right place. In today’s article, I will outline all the important information that you should know about the real estate industry that will help you pursue your career with confidence.
4 Different Types of Real Estate
In the real estate industry, there are 4 main types of real estate: residential, commercial. industrial and land.
- Residential Real Estate: This type of real estate mainly focuses on properties for different individuals, including condos and apartments or housing for families or a group of people. Then there are single-family homes for those with larger families, which are primarily located in the rural and suburban areas as well as vacation homes. These types of properties are mainly sold as living spaces.
- Commercial Real Estate: Commercial real estate is the type of real estate that mainly focuses on places designed for commercial purposes. For instance, some examples include shopping malls, hotels, resorts, office buildings, hospitals, restaurants, etc.
- Industrial Real Estate: Industrial real estate refers to a place that is used by industrial businesses for the purposes of warehouse manufacturing, construction, factories, etc.
- Land Real Estate: Last but not least, land real estate is a land property that is sold for future investments in land for purposes such as housing, ranch, farms, etc.
Careers in the Real Estate Industry
The major types of careers in real estate are divided into several different fields such as sales/marketing, brokerage, property/land management, development, and professional services, such as real estate lawyer/attorney, etc.
Some careers in the real estate industry include:
- Being a Financial Analyst: the job includes managing financial analysis and determining the values of the property on sale.
- Being a Real Estate Agent: Functions include working with clients, selling/renting properties, etc.
- Being a Building Inspector: Just like the title indicates, the job involves examining buildings to make sure that everything is in proper condition.
- Being a Broker: Similar to a real estate agent, but a broker sponsors an agent and works independently.
- Being a Home inspector: Someone who assesses the quality of the homes before deciding on prices and consulting analysts.
- Being a Mortgage Specialist: Someone who handles mortgage-related issues and approves applications.
- Being an Attorney: Someone, specifically a lawyer, that specializes in real estate-related legal issues.
Differences Between a Real Estate Agent and a Broker
A lot of the time people confuse a real estate agent with a broker or vice versa. However, even though both come from the same background, there are a list of differences that help tell them apart. A real estate agent is the person who represents the seller/buyer of the real estate property. The main difference between a real estate agent and a broker is that brokers work independently while agents work under licensed brokers with the intention of representing their clients. Below I have outlined some specific details that go in each job:
Real Estate Agent
- Cannot work independently
- Must work under a licensed broker
Real Estate Broker
- Can work independently
- Can hire real estate salespeople/agent
- Can work as a real estate agent
- Must have gone through training and passed a brokers exam
- Licensed to have their own firm
In order to be a real estate agent, you must be at least 18 years of age, be a legal resident of the United States, have passed your state’s real estate license exam, be under the supervision of a real estate broker, and have completed a background check. In general, real estate agents can become brokers if they undergo the required training and pass the required examinations. The requirements differ from state to state. In Texas, for instance, you must have at least four years of prior experience as a licensed real estate agent, and your experience must total a minimum of 3,600 points.
What is a Realtor?
A Realtor can be an agent or a broker. A real estate salesperson is given the title Realtor if they belong to the (NAR) National Association of Realtors. These individuals may run an agency and have hired agents working for them.
Working With a Buyer
The buyer’s agent’s duty is to understand their client’s needs while in the process of buying a home. They should take into consideration the type of client moving into the neighborhood. A good real estate agent must know the area by heart and be able to walk their client through the entire process of their investment. With the help of the MLS, aka the Multiple Listing Service, an agent can have access to all houses on sale in the area. A very important role of a real estate agent is to always make sure to get the best possible deals for houses. They can meet up with the sellers and compromise in order for both parties to agree on the best possible deal.
Working With a Seller
The seller’s agent’s duty is to understand their client’s needs for selling a house. For instance, the price range that they want to sell it for, and how long the house will be on the market. Real estate agents help sellers by walking them through the entire process of home selling starting from the beginning to finishing touches, when to set up an open house, and the best time to hold it. Just as mentioned above, the same role applies to seller’s agents. They must know the best ways to compromise with the buyers so that both the seller and the buyer can settle on the best deal. Real estate agents should also help sellers with the closing process and the paperwork that comes with it.
What Else Should You Consider?
Below I have outlined some useful tips that may help you with your process of becoming a real estate agent.
- Start Building Connections: Building connections with other agents or those in the field of real estate will help you immensely with your career in the long term so it’s best to start early.
- Have a Positive Attitude and Be Friendly: Having a positive attitude will help you look more approachable and develop better relationships with your customers.
- Don’t Be Afraid to Ask for Help: You may feel like you must handle everything on your own but there is no shame in asking for help when you need it. Ask experienced agents about their job, and learn more about the industry. It’s best to be prepared for everything if hiring companies or customers start asking questions.
- Take Your Job Seriously: Make sure you go in for the right reasons, learn more about your industry each day, read books, articles and educate yourself. Real estate is an ever-changing industry, so trends are constantly changing. The best way to track them is to keep up with the latest news on trends and the marketplace at all times.
Want to know more about the real estate industry? Make sure to check out more of our blog posts.