A real estate agent is a licensed professional who arranges real estate transactions, putting buyers and sellers together and acting as their representative in negotiations. Real estate agents usually are compensated completely by a commission—a percentage of the property’s purchase price—so their income depends on their ability to close a deal. In almost every state a real estate agent must work for or be affiliated with a real estate broker (an individual or a brokerage firm), who is more experienced and licensed to a higher degree.
In order to become a real estate agent and legally practice real estate, you must work under a supervising broker. Brokers are licensed by the state to oversee real estate transactions and ensure that real estate salespeople (that's you!) are adhering to the required legal and ethical standards.Think of it as a similar safeguard to how stockbrokers must work at a licensed firm to trade stocks, rather than just winging it on their own. Eventually, you could also apply for a license to become a real estate broker as well, but you will first want to get a few years as an agent under your belt.
Do you know how to calculate the fair market value of a house? What about the capitalization rate or real estate conversion? Do you know what is the right type of appraisal for the house? The situs definition, as well as the replacement cost or income approach, may seem foreign to you. Moreover, as a real estate investor, do you know how to convert a warehouse into a loft? Or what novation in real estate means? Real estate agents are like copilots - they help home buyers, sellers and renters navigate through all the real estate documents they need to sign explaining all the unfamiliar real estate terms. And business gets a lot more complex as we dive into commercial real estate.
Deciding to become a real estate agent is a major move in anyone's career journey. People enter the field of real estate from various occupations and careers, and at various stages of their lives. Everyone has different reasons why they think real estate is the correct career choice for them. But, one question consistently comes from people looking to enter the real estate industry: "How do I become a real estate agent?"
Brokers typically own a firm or a franchise. They can be solo practitioners, but they must attain another higher-level license if they want to hire agents or other brokers to work under them. As mentioned earlier, a real estate agent usually cannot work alone but instead must operate through a real estate broker; the exception is in states such as Colorado and New Mexico, which mandate that every real estate professional be licensed as a broker. Usually, though, agents work for brokers and split commissions with them.
5. Agents perform tasks that take a lot of time, thus allowing their clients to focus on other things instead of wasting time trying to figure out how to do certain things on their own. Among the daily tasks are marketing the properties online or via the multiple listing services (MLS), scheduling showings, planning an open house, keeping in touch with the buyers/sellers/landlords, formulating offers, and so on.
Wouldn’t it be great if you could sit down with a room full of successful real estate professionals and ask them for career advice? We asked several accomplished real estate professionals what they wish they knew before they earned their license and started their career, and what they thought all aspiring real estate professionals should know. We put all of their advice into a value-packed eBook.
Real estate agents usually specialize in either commercial or residential real estate. Either way, they perform different duties, depending on whether they work for the buyer or the seller. Agents who work for the seller, also known as listing agents, advise clients on how to price the property and prepare it for a sale, including providing tips on last-minute improvements that can boost the price or encourage speedy offers. Seller agents market the property through listing services, networking, and advertisements.
Since 2003, The OFFICIAL Real Estate Agent Directory® has been building a community of trustworthy real estate professionals who are passionate about their jobs. Every single day, 365 days a year, homebuyers, home sellers, renters as well as successful entrepreneurs looking for commercial real estate rely on the services provided by the credible real estate professionals listed in our agent directory. For years, RealEstateAgent.com has been the meeting point of the real estate industry.