Many people have an interest in real estate; the ups and downs of the business are matters of general discussion at tables around the country. But how about real estate as a career? What kinds of jobs are out there and how do they measure up against other vocational choices? In this two part article, we will explore the various facets of the business and the career opportunities that comprise it.
When most people think real estate, they think sales. And yes, the real estate salesperson is the primary real estate worker. But real estate salespeople and brokers concentrate on many aspects of the business: they facilitate the sales of homes, apartments, offices, office buildings, industrial property, raw land and businesses. Other related careers in real estate include mortgage bankers and brokers, real estate appraisers, property managers and the many jobs that are required in the area of real estate development: analysts, writers, researchers, marketing specialists and the like.
First, let’s look at real estate sales. Selling real estate is almost exclusively a commission-only business. In actuality, though a salesperson may work under the aegis of a broker who supplies an office environment, advice and support, the salesperson is in essence conducting his own business.
How assiduously he or she pursues the process of obtaining listings and procuring clients, will determine how much he/she is able to earn.
The sky may be the limit, but this is no business for the timid or shy individual. It is ideal, though, for a self-starter who has the energy, confidence and aplomb to get out there and shine. The rewards can be many: high income, the freedom to set your own schedule, autonomy; it’s all up to you. But it takes ambition and perseverance to make it in a highly competitive environment, and to snap back with determination when those deals do not materialize, and commissions fall through.
A little story will tell the tale. I know of two young people who decided to try to share a job in real estate. They both had other interests so decided to form a team and divide a week, and to share whatever commissions they were both able to earn 50/50. The man was a rather shy fellow who dutifully attended to clients, but just wasn’t able to connect. His partner, a woman, on the other hand, was a go-getter with a sparkling personality; she took the first client out and made a sale and just seemed to have a knack for the business. After six months, she realized she had given away half of the money she earned to her partner, who contributed nada. Suffice it to say, that partnership ended, the woman went on to work as a broker and analyst, and the man quit the business entirely.
The motto: to determine if a career in real estate sales is for you, take an honest assessment of your ambition, willingness to work hard and charismatic powers. The business can be great, or it can be a bust; it’s really up to you. If you do decide to give it a whirl, you must go through the process of obtaining a license, which involves taking a variety of real estate courses, passing a school exam and then a state licensing exam. Requirements for licensing vary by state. Current particulars are available from your local Board of Realtors at www.realtor.com or the Licensing Commission in your state.
If you do decide you’d like to enter the business, you may choose an area of concentration: residential, commercial or industrial. Residential salespeople focus on helping people choose homes that suit their lifestyle and budget; here a personal touch is an asset. In the commercial arena, you’ll be dealing with investment properties and knowledge of growth cycles, income tax regulations, financing and ways of structuring a property for greater return is needed. Industrial sales require knowledge of proximities to raw materials, transportation, utilities, zoning, tax benefits, etc.
The Bureau of Labor Statistics projects an 11 percent job growth for real estate agents between 2012 and 2022, which is encouraging news for prospective job seekers. As the economy improves, the business will further solidify as demand grows. The median salary for real estate agents in 2012 was just slightly over $40,000 with a range of approx. $20,000 to $95,000+; this varies by community, though it is not necessarily the most expensive that produce the highest incomes, as these areas tend to be the most competitive.
Del Phillips is a California Licensed Real Estate agent. He is a member of the National, California and San Diego Association of Realtors. You can reach Del at Ascent Real Estate at 619-298-6666 or at Del@DelPhillips.com DRE LIC #01267333.
