The Rewards and Possibilities of a Real Estate Career

Film star Will Rogers once said, "Real estate is the best investment in the world because it is the only thing they're not making anymore!" Buying and selling property can bring tremendous joy, but also massive amounts of stress and confusion. A real estate professional tries to make that process as smooth and simple as possible.

What Exactly Is Real Estate?

The overall term "real estate" encompasses several distinct areas depending on the type of land and buildings involved.

• Commercial Real Estate can include empty land zoned for commercial use or existing income-producing properties like apartment buildings, offices, retail stores, warehouses, shopping centers, and industrial parks. You must help your client decide whether or not the property is a good investment, which involves evaluating its growth possibilities, current tax regulations, and its potential income.
• Residential Real Estate is the industry's largest and most popular field, with 105 million occupied housing units in this country as of the 2000 US Census. Essentially, you help individuals and families buy or sell their homes.
• Vacant Land Real Estate involves brokering deals for farming, ranching, residential, commercial, and industrial land. You need to determine the needs of your clients in order to help them successfully select a site, and for certain properties help determine the land's income potential.

What Does a Broker, Sales Agent, or Realtor Do?

Brokers and sales agents are the two primary careers within the real estate industry. Both of them do the same type of work. The main difference is that brokers are licensed to manage their own real estate businesses and sales agents are not. Instead, sales agents provide their services to a licensed real estate broker, typically on a contract basis. In exchange for that service, the broker gives the sales agent a portion of the commission earned from the agent's sale of a property.

The term "realtor" is an umbrella term referring to any sales agent or broker who is a member of the National Association of Realtors.

How to Begin Your Career in Real Estate

To work as a realtor you need a license, which involves passing a written exam. While the exam is far more comprehensive for brokers than it is for sales agents, you need at least some formal training to qualify for your license and to pass either test. A sales agent needs to complete 30-90 hours of classroom instruction; a broker needs to complete 60-90 hours of formal training and have 1-3 years of experience selling real estate. However, if you earn a bachelor's degree in real estate, some States will waive that 1-3 year experience requirement.

Most realtors have either an associate or bachelor's degree in real estate. Useful courses include:

• Business administration
• Economics
• Finance
• Law
• Real Estate
• Statistics

Both brokers and sales agents must thoroughly know their local real estate market, including the characteristics of different neighborhoods, tax laws, zoning regulations, and how to get financing.

Advantages of an Online Degree Program

Earning a real estate degree gives you thorough training in market analysis, site selection, investment analysis, and all the other skills you need to succeed in this career. Moreover, an online degree allows you to work full-time while studying, since you have the freedom to "attend" classes from the comfort of your own home at a time that best fits your schedule.

Why Work in Real Estate?

Certain names get hailed as icons of the real estate industry, such as:

• Donald Bren, the wealthiest real estate tycoon with $12 billion net worth from his hundreds of office buildings and 90 apartment complexes
• Conrad Hilton, founder of the Hilton Hotels
• Akira and Minoru Mori, real estate tycoon brothers worth billions thanks to their property and hotels throughout Japan
• Donald Trump, television celebrity and one of the most famous billionaire real estate developers.

While only a select few reach those financial heights, many have highly successful and enjoyable careers. The average real estate sales agent earns $54,410 annually, while the average broker earns $77,240.