Real Estate Professional FAQs
How do real estate brokers make money?
When a real estate transaction is completed, the buyer’s and seller’s agents receive a commission, usually 6%, of the purchase price. The agents each receive half of the real estate commission. Then they again shared this commission with their respective brokers. A common split is a 70/30 split, which means the agent gets 70% and the broker gets 30% of the 3% commission.
According In effect, real estate brokers across the country have an average salary of $68,256. On average, commissions earn them $42,000 more per year, bringing their annual income to more than $110,000. Of course, a broker’s income also depends on the type of real estate he manages. Residential, commercial and investment properties have different transaction rates and commissions.
How long does it take to become a real estate professional?
To become a real estate professional, you must follow your state’s guidelines. Although you don’t need a bachelor’s degree, you must take real estate courses and pass your state’s licensing exam.
The exact timeline for becoming a real estate professional varies by state. For example, in California, you must pass three real estate-related courses, with each course being 45 hours each. Alternatively, in Florida applicants must complete 63 hours of training. In addition to education, to become a broker you may need a number of years of experience.
Additionally, to maintain your real estate license, you must complete a certain number of continuing education hours according to your state’s laws. Most states require real estate professionals to renew their license every 2 years.
How do I know if I should use a real estate broker or agent?
Real estate brokers have a unique depth of legal knowledge relating to real estate transactions. Plus, their level of experience will help streamline buying or selling a property.
However, you access the expertise of a broker through your real estate agent, as each agent works under the umbrella of a broker. Brokers review and certify every transaction made by each of their agents. So when you hire a real estate agent, you also get the support of a broker who works behind the scenes to ensure you get excellent service. In addition, the brokerage will confirm that your real estate transaction complies with all applicable laws.
Because real estate transactions are complex, it is recommended to hire a real estate professional when buying or selling real estate. Conversely, buying a home without an agent can be difficult and expensive.
Where can I find the right real estate broker?
There are probably many real estate professionals available in your area. However, finding a good real estate broker or professional often takes effort. You can get a solid recommendation from family and friends, or you can do your own research.
In any case, the ideal is to find a broker with the following qualities:
- Focuses on your needs. Your criteria for your home should be your agent’s top priority. Also, if you are a first-time home buyer, your agent should walk you through the process. If you feel rushed by your agent, it may be a sign to look for someone else.
- Communicates clearly and frequently. Buying or selling a home can be an emotional and logistical challenge. Therefore, your agent should be a good communicator, providing you with knowledge and encouragement throughout the process. Also, since they are negotiating for you, it is essential that they communicate professionally, directly and quickly.
- Works with integrity. An agent who misleads you about a seller’s chances of accepting your offer or whether your asking price matches the market you’re in can hurt your ability to make the right choices. An effective agent will be honest with you and defend your best interests.
- Is quick to resolve issues. Whether an appraisal comes back with an unexpected amount or your final procedure reveals previously undiscovered issues, your real estate agent should think things through and not waste time trying to resolve the issues you are having.
- Stay up to date on the market. A great real estate agent will have a vast knowledge of the market and will work hard to stay informed. In the post-pandemic world, this is more crucial than ever. If your agent doesn’t seem familiar with housing market trends in 2022, you may want to find another agent.
- Is comfortable with technology. While tours and open houses are handy tools, real estate has moved online in a big way. For example, your agent should be familiar with Zillow and 3D tours. A tech-savvy agent can expedite your trip until closing day.
- Is detail oriented. From the amount of paperwork a buyer needs to submit to get mortgage approval to whether the home you’re considering is in a flood zone, mastering every detail is crucial. Your agent should be able to gather all the facts for you and leave no stone unturned.
- Show empathy. Buying or selling a home can be exciting, stressful and exhausting. An agent who can share your joy on closing day and sympathize with you if a deal falls through can be a great source of strength and encouragement.