Career Services

Real Estate

Nature of the Work

The purchase or sale of a home or investment property is not only one of the most important financial events in peoples' lives, but also one of the most complex transactions. As a result, people usually seek the help of real estate agents and brokers when buying or selling real estate.

Real estate agents and brokers have a thorough knowledge of the real estate market in their community. They know which neighborhoods will best fit clients' needs and budgets. They are familiar with local zoning and tax laws, and know where to obtain financing. Agents and brokers also act as an intermediary in price negotiations between buyers and sellers. Real estate agents are usually independent sales workers who provide their services to a licensed broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent's sale of the property.

Brokers are independent business people who, for a fee, sell real estate owned by others; they also may rent and manage properties for a fee. When selling real estate, brokers arrange for title searches and for meetings between buyers and sellers where details of the transactions are agreed upon and the new owners take possession. A broker's knowledge, resourcefulness, and creativity in arranging favorable financing for the prospective buyer often mean the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for closing sales; in others, lawyers or lenders do this. Brokers supervise agents who may have many of the same job duties. Brokers also manage their own offices, advertise properties, and handle other business matters. Some combine other types of work, such as selling insurance or practicing law, with their real estate business.

There is more to an agent or broker's job than just making sales. They must have properties to sell. Consequently, they spend a significant amount of time obtaining listings-owner agreements to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that have recently sold to determine its competitive market price. Once the property is sold, the agent who sold the property and the agent who obtained the listing both receive a portion of the commission. Thus, agents who sell a property they also listed can increase their commission.

» Real Estate (Associate in Applied Sciences Degree) at Richland College

Many people own some type of real estate, such as a house. To businesses and investors, however, properly managed real estate is a potential source of income and profits rather than a place of shelter. Property, real estate, and community association managers maintain and increase the value of real estate investments for investors. Property and real estate managers oversee the performance of income-producing commercial or residential properties; community association managers manage the communal property and services of condominium or community associations.

When owners of apartment, office buildings, retail, or industrial properties lack the time or expertise needed for day-to-day management of their real estate investments, they often hire a property or real estate manager. The manager is either directly employed by the owner or indirectly employed through a contract with a property management firm. Property managers handle the financial operations of the property, insuring that mortgages, taxes, insurance premiums, payroll, and maintenance bills are paid on time. Some property managers, called asset property managers, supervise the preparation of financial statements and periodically report to the owners on the status of the property, occupancy rates, dates of lease expirations, and other matters.

Employment & Job Outlook

Property managers held about 315,000 jobs in 1998. Most worked for real estate operators and lessors or for property management firms. Others worked for real estate development companies, government agencies that manage public buildings, and corporations with extensive holdings of commercial properties. Almost one half of property managers were self-employed. Employment of property, real estate, and community association managers is projected to increase as fast as the average for all occupations through the year 2008. Many job openings are expected to occur as property managers transfer to other occupations or leave the labor force. Opportunities should be best for those with a college degree in business administration, real estate, or a related field; as well as those who attain a professional designation. Growth in the demand for on-site property managers will be greatest in several areas. In commercial real estate, the demand for managers is expected to accompany the projected expansion in wholesale and retail trade; finance, insurance, and real estate; and services. Some additional employment growth will come from expansion of existing buildings.

Real estate agents and brokers held about 347,000 jobs in 1998. Many worked part-time, combining their real estate activities with other careers. More than two-thirds of real estate agents and brokers were self-employed. Real estate is sold in all areas, but employment is concentrated in large urban areas and in smaller, but rapidly growing communities. Employment of real estate agents and brokers is expected to grow about as fast as the average for all occupations through the year 2008. However, a large number of job openings will arise due to replacement needs. Each year, thousands of jobs will become available as workers transfer to other occupations or leave the labor force. Not everyone is successful in this highly competitive field; many beginners become discouraged by their inability to get listings and to close a sufficient number of sales. Well-trained, ambitious people who enjoy selling should have the best chance for success.

Increasing use of electronic information technology will increase the productivity of agents and brokers as computers, faxes, modems, and databases become commonplace. Some real estate companies use computer-generated images to show houses to customers without leaving the office. Internet sites contain information on vast numbers of homes for sale, available to anyone. These devices enable an agent to serve a greater number of customers. Use of this technology may eliminate some marginal agents such as those practicing real estate part time or between jobs. These workers will not be able to compete as easily with full time agents who have invested in this technology. Changing legal requirements, like disclosure laws, may also dissuade some that are not serious about practicing full time from continuing to work part time.

Earnings

A typical Real Estate Sales Agent working in Dallas, TX is expected to earn a median base salary of $29,086. Half of the people in this job are expected to earn between $28,414 and $37,033 (i.e., between the 25th and 75th percentiles). These numbers are based on national averages adjusted by geographical salary differentials.

A typical Manager Real Estate working in Dallas, TX is expected to earn a median base salary of $67,984. Half of the people in this job are expected to earn between $60,539 and $74,379 (i.e., between the 25th and 75th percentiles). These numbers are based on national averages adjusted by geographic salary differentials.

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