When buying or selling real estate, people usually turn to real estate agents for assistance. Most agents have as good , or better, knowledge of the community, neighborhood, and laws as politicians and have to be able to discreetly decide where their clients fit in.
What a real estate agent does
In order to be successful, a real estate agent has to have a thorough knowledge of the real estate market in their community. The agent has to know which neighborhoods fit different clients’ budgets and interests, how to obtain financing, and the local zoning and tax laws. People skills are also a must, as the agent acts as an intermediary between the buyer and seller. Real estate agents usually are independent sale workers who provide their services to a licensed real estate broker on a contractual basis, and the agent receives a commission on the property. Agents have the flexibility to make their own schedules, but the job does involve a lot of evening, weekend, and holiday hours (when everyone else, including people buying and selling houses, are off). Agents spend a lot of time obtaining listings, which are agreements by owners to allow the agent to sell the property. When evaluating a property’s worth and to determine a competitive price, an agent compares it to similar properties that recently sold.
Meeting with potential buyers
Before taking potential buyers to properties, the agent first sits down with them to determine how much the buyers can afford to spend. The agent also has to get a feel for the type of home and neighborhood the buyers are looking for. A young family looking for a house is a different market than parents looking to make an investment by buying their college student a condo. The agent and buyer usually sign a contract that states the agent will be the only one to show houses to the buyer. The agent uses a computer to show prospective houses to the buyer, which allows the buyer to view the outside of the house, the surrounding area, floor plans, and other interior images.
What you need to become a real estate agent
A real estate license is required in every state and the District of Columbia. The examination includes questions on basic real estate transactions and laws covering the sale of property. Most states also require 30 to 90 hours of formal training before the examination can be taken. The license also has to be renewed every one or two years.
Earnings and job outlook
Employment of real estate agents is expected to grow more slowly than other occupations through the year 2012. However, low interest rates should continue to keep the housing market going, resulting in a need for more agents and brokers. The job is relatively easy to enter, but beginning agents face stiff competition from established agents. Commission is the main source of earnings among agents and brokers. The median annual earnings for agents in 2002 was a little less than $31,000. Income usually increases as the agent’s experience does, but most experts recommend that an agent start out with enough money to support himself for 6 months or until commissions increase.
By Virginia Zignego