Becoming a Real Estate Agent – A Guide for Newbies

A real estate agent is more than a simple broker who helps someone sell their house, although this is part of the job description. In fact, the real estate market is very similar to the stock or commodities market, which takes real, dedicated professionals to turn a profit and invest safely. What makes the real estate market a lot more inviting than these other markets is the fact that, for the most part, real estate is generally stable. Property always exists (supply), but the demand for a place to live is always high, which means that a hardworking real estate agents can always find good work in this market. This market is what is known as a blue-chip industry, which means it can weather downturns and is very stable. Although study and research is necessary, a university degree is not at all needed. Taking these two factors into mind, a career as a real estate agent definitely does look promising. However, it will take work, study and a lot more work to become truly successful.

So You Think You can be a Real Estate Agent?

Looking over blogs and scanning the internet will yield a host of blogs and guides which make a career in this field seem like a part time hobby, like fishing or stamp collecting. While there are some people who do real estate work part time, becoming truly successful in this field will require dedication and research which may not leave time for another job. However, while doing the initial studying, it may be necessary to keep another job to pay the bills before you can lay down an entrance mat on your first sold home. There are many courses available in the UK, Australia, New Zealand and the United States which provide the tuitions and study materials which help newcomers pass the exams required to receive a license.

Depending on the country and area you are living in, there will be different requirements and options available to choose from. An important decision to make involves picking a specific career from the many options available, and then choosing a course that will help you obtain a license. Real estate can be divided into several categories: commercial, residential, agricultural and industrial. Of these four, agricultural and industrial take a lot more study and research and are usually handled by very large companies, rather than individuals. Residential and some aspects of commercial real estate are typically handled by small companies or individuals.

Jobs Available in the Commercial and Residential Markets

In the business sector, there are many specific fields of work which include managing property, investing money to finding offices to let. One option is appraisal services, which requires that practitioners take a special course which enables them to value property, which facilitates a sale. This is an entire job on its own, as many businesses and individuals prefer if their property is valued by an outside professional rather than the agent brokering the deal.

Many times people have property which they do not want to sell, and yet only use occasionally or rent out to tenants at times. They will typically hire a property management service to manage the upkeep of their property and ensure that it doesn’t devalue through decay, termites or have any other problems. A property management specialist can handle many properties at the same time, along with other real estate jobs, such as brokering. A property management should be able to take care of maintenance, upkeep and pest and fly control, to ensure that the property does not devalue. A slightly related field is land developments – a tricky aspect of real estate, which is usually handled by corporations who specialize in planning and development. However, developing offices and smaller areas are sometimes handled by small groups and individuals.

Relocation services are offered to companies which need to relocate individuals or even whole groups of employees to new cities, states or countries. This is a large job which can involve leasing new offices and sometimes condos or flats for the new employees. A separate, but related line of work is net leasing, which is a type of renting done almost exclusively by corporations. This type of lease involves the tenant paying for upkeep of facilities and utilities on the property along with rent. The agent’s job is to find a lessor (landlord) and a tenant (usually a corporation) and help the entire process run smoothly.

Real estate investing is a bit like playing the stock market with land. It revolves around the same concept of buying shares and selling for a profit. However, the downfalls and risks involved with the stock market also apply to this job market. A practice known as “house flipping”, or buying and selling many houses within a few weeks has many disadvantages and risks. However, there is also the safer and more favorably deemed option of purchasing and refurbishing land to increase the value over a few years. If this is done correctly, the profits seen are generally more than interest accumulated in the bank. It is also safer (and can even be more profitable) than investing in a volatile stock market.

Brokering is what most people think about when they hear “real estate agent”, although this is not the only career choice for a professional in this line of work. Brokering consists of matching buyers to sellers, as well as tenants to lessors. This is more than just finding flats to rent or houses to sell. A good agent should have a thorough knowledge of the residential market, know the best deals and all laws pertaining to the field. Most importantly, a broker should be able to cultivate good relationships with clients, appraisers and the hundreds of other people involved. Many agents rely almost solely on referrals and positive word of mouth advertisements from satisfied customers. On the other hand, a few negative words from disgruntled clients can be very bad for business.

Have Licenses that Will Sell

Once you have decided which path you want to pursue, the next option is to obtain a license. This can be done by going to a school or studying online to prepare for the exam. Depending on whether you are also juggling another job, this process can take a few months. Once the exam has been passed, you will then receive a license to practice in the area or state where it was issued. The same principles that apply to any job or skill apply to this area as well; study diligently, work hard and focus and you will find yourself a successful real estate agent in no time.