Real Estate Agent
Real estate agents are qualified experts who are essential in bringing buyers and sellers together, negotiating deals, and closing deals. Their income is strongly correlated to their ability to adjacent deals because they are paid a commission, which is a percentage of the sale price of the property. In the majority of states, real estate agents are required to operate under the supervision of a registered real estate broker or brokerage company that oversees compliance with legal requirements and offers training and support.
One must fulfill their state’s licensing criteria before becoming an agent, which often includes enrolling in and completing a pre-licensing course, passing a state exam, receiving a license, and joining a brokerage. Agents can help clients buy, sell, or rent real estate, including houses, lots, and commercial property.
Many agents want to advance to the position of broker, which calls for further training and expertise. In addition to having more autonomy and hiring agents to work for them, brokers also have additional responsibilities. In this post, we’ll examine your options if you wish to work in real estate.
Categories of Real Estate Brokers and Agents and Their Responsibilities
When representing buyers and sellers of real estate, real estate brokers and agents have comparable tasks and obligations. They offer expert guidance, walk clients through the purchasing and selling processes, and make sure all legal and ethical criteria are followed. You must finish a pre-licensing course, pass a test, and receive a license from your state to work as a real estate agent or broker.
There are four areas of representation for real estate brokers and agents:
- The seller’s representatives
- Agents for purchasers
- Double-identity agents
- Transaction brokers
The Seller’s Representatives
To market and sell the seller’s property, these agents operate on their behalf. They support the seller in setting a fair market value for the property, producing a listing for it, marketing it to prospective buyers, and dealing with buyers on the seller’s behalf.
Agents for Purchasers
These agents search for and work with properties that fit the buyer’s demands and budget. They said the buyer was in the process of finding potential properties, informing them of the local real estate market, negotiating the purchase price, and helping with the necessary paperwork to complete the transaction.
Double-Identity Agents
There may be times when the same real estate agent represents both the buyer and the seller. In this case, the agent must maintain perfect impartiality and abstain from any conflicts of interest. They must guarantee that all parties are equally represented and are aware of their rights and obligations.
Transaction Brokers
To ease the sale, these agents operate as middlemen between buyers and sellers. They function as an impartial third party to make sure the deal goes smoothly; they don’t represent either party. They can help with paperwork, set up appraisals and inspections, and organize the sale’s closure.
Role of Real Estate Agent
Depending on whether they are representing the buyer or seller, real estate brokers have a variety of responsibilities. Seller agents, usually referred to as listing agents, help clients prepare their properties for sale and set a fair asking price for their properties. To draw in prospective purchasers, they employ marketing strategies, networking, and listing services.
On the other hand, buyer agents aid clients in locating properties that match their needs and help them make a reasonable offer based on prior sales information and market circumstances. The commitment and representation of an agent can make a big difference in the result of any real estate transaction.
Agents act as go-betweens, relaying requests, counter-requests, and offers between the parties. The ability of an agent to work as a dual agent, representing both the buyer and the seller, is governed by state legislation. Dual agents are required to disclose their involvement to both parties to avoid any potential conflicts of interest.
Motivating Factors to Consider a Career as a Real Estate Agent
- A real estate agency offers a diverse range of work that avoids monotony.
- Interacting with diverse clients and visiting distinct properties is part of the day-to-day work.
- Independent agents get to guide buyers and sellers through significant life milestones.
- Based on current data from 593 salarieswith a high level of confidence, the average yearly income for real estate brokers in India is 2.2 lakh.
- The take-home salary ranges from ₹14,894 to ₹16,452 per month.
- The stated salaries range from $0.2 lakh per year to $6.0 lakh per year.
- These estimates are based on real estate agents’ self-reported salaries in India.
- Entering the real estate field is comparatively uncomplicated and low-cost.
- The real estate field provides similar earning prospects as other professions that require a college degree.
- The real estate industry has relatively low barriers to entry compared to other professions.
- Real estate professionals have the opportunity to work independently or with a team.
- The real estate industry has the potential for significant income growth over time.
- Real estate agents can develop valuable skills such as negotiation, marketing, and communication.
- The industry has a positive impact on the community by helping people find homes and stimulating the local economy.
The Process of Becoming a Real Estate Agent: Step-by-Step Process
Since each state has different standards, you will need to invest some time and money upfront to become a real estate agent. But you can follow these six general steps to become a real estate agent:
- Discovering the requirements set by your state
- Learn the prelicensing course
- Take the licensing exam
- Activate your real estate agent license
- Consider a career as a realtor
- Joining a real estate brokerage
Discovering the Requirements Set by Your State
Since there is no federally recognized real estate license, it’s critical to comprehend the particular licensing requirements in your state. To accomplish this, search the regulatory agency directory on the (ARELLO) Association of Real Estate License Law Officials website and the website of your state’s real estate regulatory office.
- Age, education (such as a high school diploma or GED), pre-licensing programs, exams, application procedures, fees, background checks, fingerprinting, continuing education, and reporting of criminal historiesare all subject to state-specific laws when becoming a real estate agent.
- If your state has reciprocal licensing arrangements with other states, you may use your license in those states without having to take additional tests.
- For example, New York has reciprocity agreements with Oklahoma, Pennsylvania, Colorado, Massachusetts, Connecticut, Georgia, West Virginia, Mississippi, and Arkansas.
Learn Prelicensing Course
To obtain a real estate license, you must complete a $350 pre-licensing course from an authorized real estate licensing institution.
State-specific course requirements range from 75 to 63 hours in New York, Georgia, and Florida, compared to three classes totaling 135 hours in California. These classes are offered at community colleges or real estate schools both in person and online.
The Licensing Examination
How to plan, register for, and pay for the licensing exam, which normally costs $100–300, will be explained by your instructor. The examination has two portions and is computerized.
- The main principles and practices of real estate on a nationwide level
- A section dedicated to your state that details its real estate laws
The number of questions and the time for the multiple-choice test vary per state. You need to ace both parts of the test to succeed. If you don’t pass, you can retake the test under your state’s regulations on the number of tries, the waiting period, and the deadline for retakes.
Initiate your Real Estate Agent License
After passing the test, you must submit an application to your state’s real estate regulatory agency along with the necessary paperwork and a fee, which normally ranges from $200 to $400.
The state will issue you a real estate license certificate and add your name to the license directory on their website as soon as your application is accepted. It’s important to keep in mind that you cannot work as a real estate agent unless the appropriate state agency has officially issued you a license.
Consider a Career as a Realtor
Real estate agents and Realtors, often used interchangeably, are licensed professionals who follow the National Association of Realtors (NAR) strict Code of Ethics. NAR, the largest trade association in the US with 1.5 million members in various real estate sectors, offers an optional membership to Realtors.
Becoming a NAR member as a Realtor can enhance your credibility and provide access to business tools, real estate market data, educational opportunities, and discount programs for a cost of approximately $185.
Additionally, Realtors can utilize the Realtors Property Resource (RPR), the largest online database in the US that provides public records and assessment information on zoning, permits, mortgage and debt data, schools, and foreclosures.
Fitting together a Real Estate Brokerage
A licensed broker who oversees deals and ensures standards are being followed supervises real estate agents. Agents are paid a percentage of the commission rather than an hourly wage.
In addition to one-time costs like desk fees and marketing materials, agents may also be required to pay recurring costs like license renewal, continuing education, and MLS (Multiple Listing Service) membership. It often costs $25 to $500 per month to join a brokerage.
Comparison of Realtors, Real Estate Agents, and Real Estate Brokers
Real estate brokers, real estate agents, and realtors are all professionals in the area who assist clients with the purchase, sale, and rental of real estate. Regarding the requirements, duties, and affiliations of various roles, there are some significant variances, as given below.
| Real Estate Agent | Real Estate Broker | Realtor |
|---|---|---|
| Basic Real Estate License. | Higher-level licensing exam, additional training and education, and recent experience as an active agent are required. | Member of the National Association of Realtors (NAR). |
| Capable of assisting clients in purchasing or selling real estate. | Take care of the real estate transaction’s technical components. | Expected to possess subject-matter expertise and abide by the NAR’s code of ethics. |
| Operate through a real estate broker. | Can own a firm or franchise and hire agents or brokers. | Must belong to a state or local real estate association or board. |
| Typically work for brokers and split commissions with them. | Can work independently or with brokers or agents who report to them. | Must be a real estate agent or broker to be a realtor. |
The Importance of an Experienced Real Estate Agent
When you need to buy or sell a house, a skilled real estate agent is a must. Checking an agent’s license renewal history can help determine their experience.
Experienced agents offer valuable advice, including
- Rapport with other agents
- Knowledge of market trends
- Negotiation experience
- Referrals to vendors
- Community Connections
It’s better to find the best agent for your needs than to use a relative or close friend as an agent. Experienced agents with a strong foundation can weather fluctuations in the real estate market.
Traits to look for when identifying experienced agents include:
- Good communication skills
- Organizational skills
- Time management skills
- Patience
COVID-19’s Effects on the US Residential Real Estate Market
The COVID-19 pandemic had a considerable influence on the U.S. residential real estate market in the spring of 2020, according to a study from The Federal Reserve Bank of St. Louis. Health issues, instructions to remain at home, and financial instability were the causes of this. In April and May of 2020, home sales fell to their lowest levels since the financial crisis of 2007, but surprisingly recovered in the summer.
Despite the difficulties, real estate brokers have adjusted to the ever-changing circumstances, putting in place safety precautions including sanitation stations, masks, and warnings regarding travel and contact with symptomatic people. Despite these difficulties, numerous real estate firms, like Kaderabek’s, have seen record years in 2019 and 2020.
Guidelines for Achieving Success Real Estate Agent
Passing the real estate agent test is important, but having a plan for the job is crucial to succeeding. Steps such as finding a mentor and creating an online presence can help you become a successful agent.
- Have a backup source of income for at least six months without a commission.
- Find a mentor or assist a successful agent to learn about the real estate process.
- Make use of your team’s and agency’s credentials.
- Build your “book of business” by networking and hosting open houses.
- Start with technology and create a professional-looking website.
- Plan for challenges, have a plan, and work hard to find success in the first year or two.
Pros and Cons of Being a Real Estate Agent
Being a real estate agent can be a rewarding career for those who are passionate about the industry and helping clients buy or sell properties. Like any profession, there are benefits and drawbacks to take into account.
 Advantages of Being a Real Estate Agent |  Disadvantages of Being a Real Estate Agent |
|---|---|
| Attaining independenceExperiencing accountabilityEarning esteemThe thrill of the job | Lack of structureRisk of mistakesUnusual working hoursInconsistent earnings |
In a Nutshell
- Getting into real estate may be a rewarding and possibly successful career choice.
- Real estate agents play a vital role in the industry by connecting buyers and sellers, negotiating deals, and ensuring legal and ethical requirements are met during real estate transactions.
- To become a licensed agent, one must fulfill their state’s licensing criteria, which usually include completing a pre-licensing course, passing a state exam, receiving a license, and joining a brokerage.
- Real estate brokers have additional responsibilities and may work independently or act as transaction brokers.
- Experienced real estate agents are essential when buying or selling a house, and it’s better to find the best agent for your needs.
- Administrative duties, marketing, and social media promotion are important for new agents, while Realtors have access to NAR’s advantages and services.
- Being a real estate agent can provide independence, accountability, esteem, and excitement, but it also lacks structure, involves the risk of mistakes, requires unusual working hours, and may result in inconsistent earnings.
Frequently Asked Questions
1.What Common Administrative Duties Fall Under the Purview of a Real Estate Agent?
In addition to lead generation, marketing, open houses, and property closings, real estate agents also have many daily responsibilities. They also play a vital role in administrative duties like handling documents, scheduling appointments, and responding to messages. Agents frequently employ helpers to handle these duties, which boosts their efficiency.
2.How Can a New Real Estate Agent Market Their Self?
You can find it easier to start your job if you go out to your friends and family and build a marketing network. To increase interest in your new position, reach out to lenders, other realtors, and even new house builders. You should also use social media to promote your agent’s profile.
3.What is a Realtor, and How is it Different from a Real Estate Agent?
Real estate professionals who are part of the (NAR) National Association of Realtors, a trade association for agents in the US, are referred to as “Realtors” as a registered trademark. Although the term is occasionally used synonymously with “real estate agent,” it refers particularly to NAR members who adhere to the organization’s code of ethics and professional standards.
Realtors have access to the NAR’s advantages and services, including advocacy work, market research, and educational opportunities. Real estate agents who join the NAR and agree to follow its code of conduct are referred to as Realtors, which sets them apart from other real estate professionals who are not a part of the group.
4.What is the Compensation Method for Real Estate Agents?
- Real estate agents are paid through commission-based structures.
- A portion of the sale price is used as commission.
- A higher sale price means more commission for the agent.
- Alternative payment structures include flat fees and fee-for-service pricing
- The flat fee covers the entire transaction.
- Fee-for-service allows payment for specific aspects of the selling process.
- Some brokerages offer lower commission rates for high-priced homes.
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