Though there are numerous real estate positions, real-estate brokers work directly with clients on the sale or purchase of a new home or office. They guide their clients through paperwork, government regulations, zoning laws, and price negotiations as they buy, or sell property. They often hold simultaneous meetings with the buyers, and sellers to optimize communication between all parties.
Real-estate brokers also help buyers arrange the financing of their home. These brokers communicate with banks or mortgage brokers, to secure sufficient financial aid for the residence or office. Once brokers close the sale, they usually receive an ample commission, especially if they have both listed the property as for sale and made the sale to a new owner.
Since brokers earn considerable amount of money from listing properties for sale, they spend much of their time scouting for new property to sell. Once they learn about properties that may be for sale, they contact the owner and ask for permission to list that property with their firm. Once brokers have listed a property for sale, they receive a commission. They then research the property in order to ascertain a reasonable market price for its sale. Some of the aspects they may research are the value of the property’s location, the average income for its surrounding area, and its structural assets (such as its proximity to schools and shopping areas). They then put the listed property in their records and present it to clients who may either be directly inquiring into that property or fit the profile for that property.
When buyers who are not making direct inquiries contact their firm, the real-estate broker will hold a consultation session with them to get an idea of their ideal property. If they are searching for a residence, the broker will take into account the size of their family, income status, and location preference. Before they present a list of possible properties, brokers have the buyers sign a loyalty contract, which states that the buyer will not contact another real-estate firm for obtaining new property. Thereafter, the broker presents properties that best complement the buyers’ needs, preferences, and details possible sources of financing for the clients.
This property-selection phase may last several sessions. Brokers use their expertise of the listed property to detail each property’s individual assets that pertain to their client’s preferences. For instance, they may describe to clients how a property in a relatively low-expense area is projected to gain real-estate value over the years, thus making its purchase a wise investment for the client.
In addition, the broker usually arranges on-site visits for the buyers. They arrange visit times with the owner of the property and visit the site, taking the buyers on a detailed tour of the property. This visit gives brokers the best opportunity for describing the property’s assets and investment potential.
Brokers are also responsible for price negotiation between the seller and buyer. The client often directs them to name a range of prices as negotiation takes place. Moreover, following the sale, the brokers often schedule inspections for the property, such as termite inspection or lead-paint evaluations.
Most brokers work in residential property, with a minority working in large firms for commercial, retail, industrial, and agricultural property. For each type of property, they gain specialized education and training that makes them highly qualified. They keep abreast of economic trends related to each type of property so they can advise buyers on the soundest property for their means.
Since brokers are licensed to manage their own real-estate business, they often manage other real-estate agents. However, both brokers and agents work erratic hours during their 40-hour week in order to respond to clients. Yet, brokers can often set down their own schedules and vacation time.
The state-mandated requirements for brokers to be a minimum age of 18, graduation from high school, and passing a written exam. However, most brokers obtain their bachelor’s degrees in real estate, business, or finance. They may also take courses offered by a real-estate association, such as the National Association of Realtors. These associations offer more job-specific courses than at colleges. For instance, they offer mortgage-lending courses for those who want to obtain real estate finance jobs.
Nonetheless, all real-estate brokers and agents pass a state-administered written examination before entering their practice. The examination for brokers is often more comprehensive than for agents, though both exams test knowledge of building laws and real-estate transactions. Broker exams often require 60-90 hours of classroom training plus 1-3 years of practical experience. Therefore, most brokers work as agents before they take their broker exam.
Brokers earn roughly $61,000 per year, including their commissions. Entry-level brokers earn nearly half that much at $37,000 yearly, while more seasoned, urban-based brokers can earn a six-figure salary. These salaries should remain relatively steady throughout the next decade, as real-estate job growth faces stagnation from economic conditions, new technology, and more established real-estate firms.
