Why should you consider the option of having a career as a real estate agent?
While the world is turning to more and more WFH scenarios, many youngsters are leaving the traditionally preferred jobs and opting for career as Real Estate Agents. Why? Because even if a Real Estate Agent struggles for some time, he meets new people, earns a HUGE amount of money, and then lets his work speak for him.
There certainly are many reasons why you ought to consider the option of career as a Real Estate Agent as early as possible. Or even if you don’t want to be a real estate agent, you can know what it is all about and get knowledge of the concept as gaining knowledge causes no harm, right?
So let’s begin by understanding what a career as a Real Estate Agent actually is!
In the simplest terms, a Real Estate Agent is an agent whose main responsibility is representing the sellers and buyers of a property. While the responsibilities could be limited or extended depending on the law of the state or country where the property is (we are talking about real property in this case), on reading further you will get the basic information about the main jobs of a Real Estate Agent along with some other details.
Different Nations – Different Rules for Real Estate Agents
Okay, where are you from? The United States, the United Kingdom, Canada or any other country? – because each country has a certain set of protocols to be followed by a Real Estate Agent, or for an individual to be a Real Estate Agent.
For example, some require a candidate to appear for a written examination while the others want you to have a professional apprenticeship. More detail in this regard is going to be given in the next sections.
Real Estate Agent vs Real Estate Broker vs Realtor
While the roles are more or less the same for all of them mentioned above, the difference is in the level of authority and independence which one receives while working.
A Real Estate Broker, for example, is a licensed entity or an agent who can work independently as he has a legal licence to practice. (These guys also earn more than the real estate agents!)
A Real Estate Agent, on the other hand works under a listed Broker, or as we can say is an apprentice of a Real Estate Broker. (After getting experience, an agent can become a broker by fulfilling certain requirements)
A Realtor though has the similar authority and power as a Real Estate Broker, is different from the latter owing to acquiring a Certified Membership from a Realtors’ Association like the NAR in North America.
Types of Real Estate Agents
The two main individuals in this case can be distinguished as Buyers and Sellers, on the basis of which the division in Real Estate Agents is made:
Seller’s Agent, also known as a Listing Agent, as the names suggest, represents the seller, or in other words, undertakes the responsibilities on the behalf of the person who intends to sell his property.
Buyer’s Agent, on the other hand is the representative of the buyer, and is accountable for the things a buyer needs to keep in his mind while purchasing any property, whether it is a plot or a piece of land.
Then in some cases, there is also a Dual Agent who represents both the buyer and seller at the same time after signing an Agreement of Dual Agency. However, there is mostly a fear of Conflict of Interest in such cases.
At times, when a representative is not required while looking for a purchaser or seller, there is a need for someone to provide representation for the transition and transaction to take place smoothly, and this individual is none other than a Transaction Broker who has a limited representation.
Duties of a Real Estate Agent
Whatever one says, undeniably the duties of a Real Estate Agent, or a Broker, or a Realtor (You know the difference, don’t you?) are some of the toughest duties in the world. And there are multi-faceted factors for it to be this difficult, afterall it involves a transaction worth millions, sometimes billions of dollars.
Apart from this, this is a job which requires one to work and negotiate with all sorts of people which is quite risky as even one bad word-of-mouth can put all your previous efforts in vain. But then we all know that life is nothing without challenges, so why fear in cases when tougher the task, better the reward!
Look at some of the TASKS you are expected to perform as a REAL ESTATE AGENT:
- Perform comparative market analysis – whether representing a seller or a buyer, it’s an agent’s responsibility to inform his client about the existing market price for the land in question considering all the essential factors which may affect real estate’s purchase or sale.
- Render an overview of the complete market – it’s not just the piece of land, or the particular home whose analysis needs to be done but the real estate agent should also know the price of property in the surrounding area. This becomes more important in the cases where an investment is to be made in real estate.
- Advertise and do marketing of the real estate – More likely to be the scenario in the case of a seller’s agent, it is the job of an agent to execute the endorsement of an estate. With the increase in use of technology in almost every field, the real estate agents can now take help from the internet for this.
- Carry out proper price negotiation – Obviously, if the promotion is done properly, there are going to be many potential buyers and sellers of the real estate. When this is the case, the real estate agent has to make sure that he efficiently negotiates the price.
(Here it is important to note that the price must always be in accordance with the need and consideration of the client. In fact, this is one of the trickiest duties of a real estate agent. As a huge amount of money is involved, things cannot be left to go with the flow. Both perseverance and rigidity (to a certain extent) are paramount in this case.)
- Hold open houses – In several cases there are many buyers or sellers of a particular property. Now whatever the case is, a buyer will always invest money in a real estate only when he is satisfied with it. This cannot happen unless he has had a look of that place. For this, the real estate agent ought to hold open houses.
- Ensure that transaction is as conditioned to be – We have already talked about the duties of a real estate agent in price negotiation. But the things just don’t end here, instead this is where the actual responsibility begins, as even a minor mistake or carelessness at this point can spoil the whole deal.
- Get proper paperwork done – As every nation, and in some nations every state/province has a separate law relating to the possession of real estate and so on, so it is one of the duties of a real estate agent to acquire proper knowledge about the same, inform about it to the client and prepare all the deeds/documentation accordingly.
The responsibilities and duties of a Real Estate Agent are not just limited to the ones mentioned here. Just like every profession there are some tasks which though aren’t written anywhere, ought to be undertaken by the individual who becomes a Real Estate Agent. In other words, there are certain skills that one needs to inculcate oneself with for becoming a Real Estate Agent.
For example, as by becoming a Real Estate Agent one of your primary duties would be communicating with people, you must possess those skills which are crucial for good communication i.e. convincing capabilities, negotiation skills, and yes, PRESENCE OF MIND because again, we all know how complicated money matters can be and we don’t want to mess things up by getting confused over petty things or simply missing good clients, right?
So keep yourself updated by learning more about the Real Estate Business for which you can also subscribe to our youtube channel for getting timely audio-visual updates by clicking here where we have all information concerning Real Estate Agents and Real Estate Businesses.
How and how much do Real Estate Agents earn?
The real source of income for a Real Estate Agent is the commission earned on every deal that is finalised by the agent. For instance, in most of the countries, the set percentage for earning as a Real Estate Agent is the 5-6% of the amount of the property sold or bought for. However, this isn’t the only way for a Real Estate Agent to earn.
Most of the Real Estate Brokers or Realtors, just because they have more experience (and of course, licence and certification too) get paid by the clients in lieu of the counselling or guidance which is provided by them. Similarly, those agents who deal with the brokerage of property on lease, also get some commission for that.
By a research which was conducted by our team, we came to know that there is a huge discrepancy in the earning as a Real Estate Agent for different people in different nations. In simple terms, the more experienced a person is in the field, the more is he likely to earn.
(But this doesn’t mean that you can’t earn more if you are new. If you have the skills necessary in a proficient real estate agent, you can surely climb the ladder of success more quickly than others!)
As we talked about a huge difference, let me tell you that the average earning for a Real Estate Agent in the continent of North America (which basically covers Canada and the United States of America) is between $22,859-$42,376 for a newbie, and it rises upto $84,667-$112,512 for an expert in the field. Here, we also found that the percentage of commission received is not fixed to a certain amount and varies between 1-6%
However, some countries require the agents to acquire a licence before practicing, and it is only after having the licence that the agent can earn the commission. So! Let’s check out how to become a real estate agent.
What if the clients don’t pay what they have promised?
Oh yes! This might happen too!
What if a Real Estate Agent doesn’t receive the promised amount? Or…. What if the client isn’t able to pay the money for the transaction, will that be paid by the Real Estate Agent?
Since the beginning I have been stressing that as this job involves money matter, the career as a Real Estate Agent can be a risky business. Hence, in order to avoid such disputes, a legal contract is made between the agent/broker/realtor and the client.
This contract clearly mentions whether the concerned obligation is fiduciary or non-fiduciary. It also states how long is the obligation or agreement likely to prevail (with clearly written starting and ending date), then it also includes the amount which has to be received by the broker/realtor or the agent in lieu of the service provided.
How to become a Real Estate Agent
Before we actually get into the procedure of becoming one, let us have a look at some of words associated with Real Estate Agency:
DOWER ESCHEAT STAKEHOLDER FIDUCIARY ESCROW APPRAISE
If you are already aware of the terms that means you are serious into a career as a Real Estate Agent, and if you don’t really know what these words mean then you still have time to begin your practice.
Because some nations like the USA conduct a test before acknowledging someone as a broker. Test rules for different states are different, every state has a separate test format, and once you pass the test, you get registered as an agent by a Broker.
In the UK, on the other hand, you ought to have a formal apprenticeship before becoming a Real Estate Agent. Surprisingly, in Canada, you need to clear a stress test after which you get a certification and then you receive a Errors and Omissions insurance after enrolling in a Brokerage Agency.
Even when a formal test isn’t mandatory to obtain a licence (practicing without licence is also considered to be illegal) for working as an agent, any sort of formal training is crucial for understanding the legal aspect and all the rules and regulations.
Alright! That’s all you need to know at the start. Both the pros and cons of this career are associated with the duties one needs to undertake here. However, with the increasing need for housing (which we are all aware of) there is no hiding the fact that this job is going to require more and more informed experts in the time to come!
So, if you have decided to start a career as a Real Estate Agent, join us and experience a bright future waiting exclusively for you!