Job Profile: Significant Points
- Sell, for a fee, real estate owned by others.
- Obtain agreements from property owners to place properties for sale with real estate firms.
- Monitor fulfillment of purchase contract terms to ensure that they are handled in a timely manner.
- Compare a property with similar properties that have recently sold, in order to determine its competitive market price.
- Act as an intermediary in negotiations between buyers and sellers over property prices and settlement details, and during the closing of sales.
- Generate lists of properties for sale, their locations and descriptions, and available financing options, using computers.
- Maintain knowledge of real estate law, local economies and types of available home financing options.
- Coordinate work processed by lenders, advocates, and other professionals to ensure that it is performed properly.
- Appraise property values, assessing income potential when relevant.
- At present, there is no license required to start working as real estate or property broker or agent in India (Except in the state Haryana).
- Real estate brokers and sales agents often work evenings and weekends.
- Although gaining a job may be relatively easy, beginning workers face competition from well-established, more experienced agents and brokers.
- Employment is sensitive to swings in the economy, as well as interest rates; during periods of declining economic activity or rising interest rates, the volume of sales and the resulting demand for sales workers fall.
This is the only profession that offers you three options to build and grow your career-First become an independent professional property broker and second join an established property broking firm as an employee. In case of third option, people initially work for property broking firms for few years before establishing their own property brokerage agency.
A career as real estate broker (also called real estate agents, estate agents, property agents, property advisors, property consultants and property dealers) provides flexibility and freedom to set your own pace. Income directly reflects your efforts, with no limits on what hard-working and intelligent men and women can earn. Successful real estate agents are goal-oriented, persevering, self-motivated, ambitious and people-oriented. The rewards of the career in real estate consulting are a potential for high earnings, autonomy, time freedom, helping people, the intellectual challenge and the satisfaction from those accomplishments.
Working in real estate allows for independence and choices of environment in which to work, such as work directly with real estate developers as their authorized property agent or get affiliated with large property dealers as a franchisee. It is very common in real estate brokerage profession to find people who started alone and independently and today employ hundreds of people. This shows that you can achieve anything in real estate, if you have desire to achieve and will to perform. However, a word of caution-Real estate is today excessively competitive business and to survive and succeed, you have to perform and there is no alternative to hard work and perseverance.
Education for a Career in Real Estate Brokerage
Though in India, there is no prescribed and mandatory educational requirement to work as real estate broker, it is advisable to do some course in real estate. There are institutes that today offer thoroughly practical real estate courses. If you have done such courses, you will not face problems while on the work. Moreover, these courses become highly important when you seek employment with real estate marketing and broking firms. It is because, these firms expect their potential employees to have good knowledge and skills in real estate. Remember, once on the job, the market is so competitive that you have to be productive from the first day on the job.
Another important aspect is that till now there is no educational requirement to work as real estate broker. However, looking at the developments at the industry and Government levels, very soon the government is to enact a real estate licensing act which will make real estate education mandatory to become a real estate broker.
According to industry sources, the draft real estate bill requires that one must have undergone certain hours of real estate education in order to become a licensed real estate broker. However, this draft is yet to become a law.
It is worth to mention here that IDS National Institute of Real Estate Management (NIREM), which has been established by the industry development society for real estate for the development of human resource for Indian real estate, has especially devised a course for people planning to start their career in real estate sales and brokerage. The course titled “Real Estate Sales & Agency Management” offers the knowledge and skills that you need to plan, start and manage your own real estate broking firm as well as to get a job with real estate firms. NIREM has also launched a course in real estate brokerage management which gives complete insight of the working of property broking firms.
Employment:
According to an unconfirmed report, there are approximately 30 lakh real estate brokers in India. But most of them work part time, combining their real estate activities with other careers. Simi9larly, majority of the property brokers and agents are self-employed. Though, Real estate is sold in all areas, but employment is concentrated in large urban centres and in rapidly developing areas and communities.
Most real estate firms are relatively small; indeed, some are one-person businesses. By contrast, some large real estate firms have several hundred agents operating out of numerous branch offices across the country. Recently, franchise mode of business in property broking has come into vogue. In this business model, brokers have franchise agreements with national or regional real estate organizations. Under this type of arrangement, the broker pays a fee in exchange for the privilege of using the more widely known name of the parent organization. Although franchised brokers often receive help in training sales staff and running their offices, they bear the ultimate responsibility for the success or failure of their firms.
Earnings:
Commissions on sales are the main source of earnings of real estate agents and brokers. The rate of commission varies according to whatever the agent and broker agree on, the type of property, and its value. The percentage paid on the sale of agriculture and commercial properties or unimproved land is typically higher than the percentage paid for selling a home.
Commissions may be divided among several agents and brokers. The broker or agent who obtains a listing usually shares the commission with the broker or agent who sells the property and with the firms that employ each of them. Income usually increases as an agent gains experience, but individual motivation, economic conditions, and the type and location of the property also can affect income. Sales workers who are active in community organizations and in local real estate associations can broaden their contacts and increase their income. A beginner's earnings often are irregular because a few weeks or even months may go by without a sale. The beginner, therefore, should have enough money to live for about 6 months or until commissions increase.
Getting Started in Real Estate
Entry into the real estate sales and brokerage profession depends on education, training and interests. During the last few years, it has been observed that most people (even if their objective is to start independent broking firm) start their career as property sales trainees in brokerage firms. However, there are people who directly start their own firm. But most of such people have prior background (either self or family background) in real estate.
Nature of the Work:
One of the most complex and significant financial events in peoples' lives is the purchase or sale of a home or investment property. Because of the complexity and importance of this transaction, people typically seek the help of real estate brokers and sales agents when buying or selling real estate.
Real estate brokers and sales agents have a thorough knowledge of the real estate market in their communities. 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 for the purchase of property.
When selling property, brokers and agents arrange for title searches to verify ownership and for meetings between buyers and sellers during which they agree to the details of the transactions. In a final meeting, the new owners take possession of the property. Agents and brokers also act as intermediaries in price negotiations between buyers and sellers. They may help to arrange financing from a lender for the prospective buyer, which may make the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for finalizing, or closing, sales, but typically this function is done by lenders or lawyers.
Agents and brokers spend a significant amount of time looking for properties to buy or sell. They obtain listings—agreements by owners 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 recently sold, to determine a competitive market price for the property. Following the sale of the property, both the agent who sold it and the agent who obtained the listing receive a portion of the commission. Thus, agents who sell a property that they themselves have listed can increase their commission.
Before showing residential properties to potential buyers, agents meet with them to get an idea of the type of home the buyers would like, and how much the buyers can afford to spend. They may also ask buyers to sign a loyalty contract, which states that the agent will be the only one to show houses to the buyer. An agent or broker then generates lists of properties for sale, their location and description, and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties that interest them.
Agents may meet numerous times with prospective buyers to discuss and visit available properties. Agents identify and emphasize the most pertinent selling details. To a young family looking for a house, for example, they may emphasize the convenient floor plan, the area's low crime rate, and the proximity to schools and shopping. To a potential investor, they may point out the tax advantages of owning a rental property and finding a renter. If negotiation over price becomes necessary, agents must follow their client's instructions thoroughly and may present counteroffers to reach the final sales price.
Once the buyer and seller have signed a contract, the real estate broker or agent must ensure that all terms of the contract are met before the closing date. If the seller agrees to any repairs, the broker or agent ensures they are made. Increasingly, brokers and agents must deal with environmental issues as well, such as advising buyers about lead paint on the walls. In addition, the agent must make sure that any legally mandated or agreed-upon inspections, such as termite and radon inspections, take place. Loan officers, attorneys, and other people handle many details, but the agent must ensure that they are carried out.
Most real estate brokers and sales agents sell residential property. A small number—usually employed in large or specialized firms—sell commercial, industrial, agricultural, or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Selling, buying, or leasing business property requires an understanding of leasing practices, business trends, and the location of the property. Agents who sell, buy, or lease industrial properties must know about the region's transportation, utilities, and labor supply. Whatever the type of property, the agent or broker must know how to meet the client's particular requirements.
Work environment. Real estate agents and brokers often work more than a standard 40-hour week, often working evenings and weekends for the convenience of clients. Although the hours are long and frequently irregular, most agents and brokers have the freedom to determine their own schedule.
Advances in telecommunications and the ability to retrieve data about properties over the Internet allow many real estate brokers and sales agents to work out of their homes instead of real estate offices. Even with this convenience, workers spend much of their time away from their desks—showing properties to customers, analyzing properties for sale, meeting with prospective clients, or researching the real estate market. Nature of work of different types of real estate brokers is given below:
Careers in Residential Brokerage
Helping people buy and sell homes is one of the most important and basic services a real estate agent performs. Agents are experts in the process of buying and selling property, renting, financing etc. The real estate agent’s expertise facilitates the transaction, saving clients time, trouble and money. Real estate professionals need to have a thorough knowledge of such areas as real estate law, local economics, types of financing, mortgages etc.
Careers in Commercial Brokerage
Commercial brokers specialize in income-producing properties, such as apartment and office buildings, retail stores and warehouses, shopping centers and industrial parks. To understand and explain why the properties are good investments, commercial brokers need to be aware of the growth possibilities of the area where the property is located, current income tax regulations and purchasing arrangements that give the buyer a greater return on investment. Commercial brokers may also have to arrange financing.
Careers in Industrial and Office Brokerage
Industrial and office brokers specialize in the developing, selling or leasing property used for industry or manufacturing. Brokers need to understand different types of industries and determine such variables as transportation, proximity to raw materials, water and power, labor availability and local building, zoning and tax laws.
Careers in Farm and Land Brokerage
Land brokers deal in agriculture land and acquisition of rural land by clients for residential, commercial and industrial expansion. Success as a land broker depends on how accurately the income potential of the property can be established. Brokers need a good working knowledge of various factors which determines a farm’s capacity to produce, including agricultural knowledge and information such as land use conversion, market centers and transportation facilities.
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