A real estate agent is a specialist who deals with the purchase, sale or exchange of real estate. Solving clients' problems, he selects the required object, studies supply and demand on the labor market, looks for buyers or sellers of real estate, and concludes contracts.
The position of a real estate agent, in fact, includes one large-scale task - finding and selecting real estate with its subsequent purchase/sale or rental.
History of the profession
Previously, people who wanted to buy, sell or rent out real estate were offered their services by so-called commission offices, the prototype of modern real estate agencies. Such offices arose in connection with the growing demand for real estate and the more complex organization of the market. Along with the advent of agencies, the profession of a real estate agent (residential, commercial, suburban) appeared and became popular.
How and where real estate agents work - professional responsibilities
Most real estate agents are in private practice and work for a private company for themselves. They also have to be entrepreneurs. Less often, but still, there are specialists whose place of work is a real estate agency, or an investment company, or any other organization whose activities are related to real estate operations.
To understand who an agent is, you need to know what he does.
The responsibilities of a realtor include:
- Collecting information about real estate that is for rent or sale.
- Studying the real estate market, determining the demand for certain housing.
- On behalf of clients, negotiates sales, purchases, and rentals.
- Conducts inspections of sites where advertisements may be located.
- Registers proposals that may come from clients.
- Looking for buyers for a specific property.
- He also searches for tenants for any real estate.
- Introduces clients to offers, offers them the most profitable and most suitable option.
- Concludes contracts with property owners and formalizes all real estate transactions.
- Consults clients on all issues that arise.
- Represents the interests of clients, stores documents submitted for the transaction, ensures the safety and confidentiality of data.
- Involved in preparing reports on the work done.
Requirements for a real estate agent
Here is a list of basic requirements for a real estate agent:
- education (secondary or higher);
- PC knowledge.
Some employers have additional requirements, such as:
- having a personal car;
- work experience (real estate);
- knowledge of a foreign language (most often English).
Definition
Recently, a huge number of transactions in various directions have been carried out in the real estate market, such as purchase and sale, rent, donation, and so on.
Based on this, we conclude that a real estate agent (realtor) is a specially trained specialist with developed communication skills who helps clients in concluding various contracts, searching for clients or premises for residential and non-residential purposes, and also provides consultations.
Thanks to this specialist, clients not only solve some problems and free up personal time, but also avoid mistakes and deception in transactions.
How to become a real estate realtor?
If you decide to try yourself in the real estate business, then you need to know where to start your professional activity. There is an opportunity to take realtor courses - good. But it would be better to go to work for some real estate agency, even for a low-level position.
And already in the process of work, undergo training at the expense of the employer and by his own efforts. While working, you can meet more experienced specialists and copy their skills, work methods and study the real estate market.
There are no educational institutions for this profession, but there are sites on the Internet that provide detailed information on how to become a successful realtor for “dummies.”
It is necessary to carefully study all the information and learn all the intricacies of real estate transactions. You can strengthen your knowledge in an agency by gaining experience.
If you learn to work in real estate professionally, then you can leave the agency and open your own. But in the absence of legal education and the status of an individual entrepreneur, this should not be done. Typically, clients have more confidence in officially registered LLCs, especially if they are wealthy.
After all, they are always ready to meet their obligations. A realtor who works as a private individual, and who is not officially registered, in the real estate market can be content with only small transactions for renting housing or selling small apartments.
In addition, a successful specialist must be psychologically prepared for this work. If you don’t have the attitude, then neither experience nor education will help.
To be a real estate agent, you must have the following character traits:
- Be able to communicate with people, have communication skills.
- Be able to win people over.
- Presentable appearance.
- Competent and correct speech.
- Be able to convince people.
- Know how to drive a car.
- Be confident in your own strength.
There is no place for boorish and insolent people in this area, as well as for shy and shy people.
Search for offers
The first responsibility of a real estate agent is to help the client understand what exactly he needs and present the available options.
Realtors, working for a company or independently, have a database of properties that are offered for purchase. And the client makes a choice from the proposed list. If he does not have time to look, then he will be given a selection of offers that meet his needs.
Over time, offers to purchase real estate began to be posted on the Internet. And by visiting the website of an agency or company, a potential client can make a first impression about the property. The price and contact details of the agent responsible for the transaction are also indicated there. This type of work organization is typical for both small real estate agencies and large companies and banks.
Pros and cons of being a real estate agent today
In the modern world, the profession of a real estate agent is common.
The thing is that it has many advantages:
- Free work schedule. As a rule, specialists can start their working day at lunchtime or even in the evening, because many meetings with clients take place after 17-18 hours. This type of work is especially suitable for mothers with children. They can plan their day to spend time with family and work.
- High wages. Your salary depends not on the employer, who can find an argument and underpay you, but on you, on the number of transactions completed.
- Possibility to organize a workplace close to home.
- Lack of routine. Every specialist can draw up an agreement and conduct a transaction.
- New friends and contacts will appear.
- Communication with people.
- There are no age restrictions for employees - pensioners can also work in real estate.
- Opportunity to become a real estate professional.
- Possibility of taking advanced training courses.
- You can retrain as a realtor to a specialist in any other field.
There are also disadvantages to being a real estate agent:
- There is no fixed salary.
- Finding clients is very difficult.
- Earnings from the first or second transaction do not arrive immediately - after a month.
- Negative attitude from clients, as if realtors can deceive.
- There is no mark in the work book.
Perhaps, specialists who were able to get through the first six months of difficult work can confirm that it will be easier further. Since the contact database will expand over time, there will be more clients, some deals will “fall” on you.
Realtor training
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Where to find a realtor and how much their services cost
So, you have decided to sell or buy an apartment, rent a home, or simply find out the average prices for real estate in your area. Usually, having spent a fair amount of time on independent searches, calls, and correspondence on the Internet, people understand that their actions are ineffective and chaotic.
The thought arises of turning to a professional. They say that the best way to find a reliable specialist in real estate transactions is to listen to the advice of friends. Surely one of them has been involved in the sale or purchase of an apartment and is familiar with professional realtors.
I will tell you more about how to find an honest agent in the next section, and here I will explain exactly where to look for him.
There are three options:
- Choose the nearest real estate agency , call there, or better yet, come in person.
- Ask relatives and friends if they have a reliable person in mind;
- Find a private realtor online or through advertisements in the media.
Solo professionals working independently of agencies come in many different forms. Sometimes these are what are called “international-class grandmasters” with many years of experience, and sometimes they are self-taught with a dubious reputation and the same methods of work.
We will also talk separately about the main danger when working with independent specialists – “black” realtors.
It cannot be said that contacting an agency is more reliable than contacting independent realtors. There are truly professional specialists who are well-versed legally and economically and do not need the support of a large company.
And they work privately because there is no need to pay the agency a percentage of the transaction or office rent.
The agencies themselves also come in different levels and statuses. For example, in the capital there are several large companies staffed mostly by non-professionals and people with zero work experience.
What do realtors get their fees for?
Sales-lease transaction specialists typically receive a commission on each deal closed. There is no fixed rate or it is minimal. If a realtor represents an agency, he receives from 25% to 75% of the profit (depending on his level).
Example
The apartment was sold for 1 million: the agency received 30 thousand, the specialist who completed the transaction received 10-15 thousand. A realtor who works independently takes all the profits for himself, but at the same time does a greater amount of work, since no one provides him with legal and informational assistance.
To people who are far from the real estate market, the work of a realtor seems easy, not requiring special knowledge and skills: you just need to organize a meeting between the buyer and the seller and receive a fee for it. It is clear that in reality everything is much more complicated.
The best realtors are real workaholics who perform a colossal amount of work. Earnings of professionals are very respectable and can amount to six figures per month. And don’t think that realtors are a community of monsters who profit from their clients’ real estate problems.
Housing costs as much as they pay for it: it is impossible to influence the price in market conditions.
What does a realtor do?
It performs a number of functions:
- Information services (receives, collects and distributes (publishes) information about the property, provides it to the customer for the purpose of sale or rental, interacts with a notary or lawyer);
- Carries out the selection of suitable real estate objects;
- Checks the “legal purity” of documents;
- Consults clients on all issues related to real estate;
- Participates in negotiations with representatives of the other party to the transaction.
In their activities, real estate agents have the right:
- Draw up draft civil law agreements (purchase and sale agreements) regarding real estate and rights to it;
- Act on behalf of the customer as his representative during the execution of these agreements;
- Carry out an approximate assessment of the value of real estate in the event of alienation, conclusion of lease agreements, sales and in other cases provided for by law.
Realtors are required to:
- Perform your immediate duties, adhering to the requirements of the law and professional ethics;
- Inform customers about everything related to the property and the rights to it;
- Avoid distortion or concealment of information;
- Do not disclose information that is a trade secret and do not use it in your own interests or in the interests of third parties.
Example 1 (unethical behavior of a real estate agent):
I helped buy an apartment in St. Petersburg for the daughter of my friend. We found a suitable option in the advertisements and I called the number provided. The agent representing the interests of the seller of this apartment said that there is already a buyer for the apartment, and he is not going to show it anymore.
The advertisement, however, remained active and the deposit, as it turned out, had not yet been paid. My client was very excited about this apartment and offered to pay 50 thousand rubles. more than the price indicated in the advertisement. I called the realtor again and he agreed to show us the apartment.
After looking at the apartment, my friend’s daughter confirmed her consent to purchase it (and for cash). Then I asked to provide the necessary documents for the apartment for review.
And then it turned out that 4 people were registered in the apartment, for which the advertisement said “documents are ready” and “quick access to a deal,” including two minor children. In addition, the apartment was purchased on credit (mortgage). And a number of “unpleasant” points that require checking.
The seller's representative, despite the increase by 50 tr. his commission, did not want to receive an extract from the Unified State Register of Real Estate, which they did not have at all, and also to “strain” his client to confirm the removal of the mortgage payment encumbrance and the non-use of maternity capital funds when purchasing this apartment.
When I said that we wouldn’t enter into a deal without these documents, the seller’s agent himself called my client and, taking advantage of her interest in this apartment, convinced her that: “the apartment is “clean”, take my word for it... I just don’t want to receive documents that are unnecessary for the transaction.”
Such behavior on the part of a realtor is unethical, primarily in relation to the representative of the other party.
The buyer told me that she wanted to move quickly and “let’s not ask for documents.” I explained to her all the possible risks when buying such an apartment and she agreed to take full responsibility. Moreover, I helped her for free and we did not enter into an agreement with her.
A good realtor, in addition to real estate, must understand various aspects of human activity. He needs to know the basics of human psychology, marketing, and jurisprudence. He must be able to assess the technical condition of real estate.
A realtor's competence, honesty and focus on results are the key to a successful solution to any real estate issue.
Qualities that a good realtor should have:
- Communication skills;
- Flexibility and determination;
- Creativity;
- Attention, tact.
Such a broker is mobile, smart and passionate, and will quickly solve any client problem related to the purchase or sale of an apartment.
Such specialists are here.
At the first stage of his work, the realtor meets with the customer, listens to his requirements and requests, and only then proposes a cooperation plan.
Using independently collected information about real estate, the sales manager looks for the most suitable options and, after agreeing on viewing conditions, meets with the customer. If the object is interesting, the agent carefully studies all the documents and only after that agrees on the terms, price and other points.
The final stage in the work of a realtor is registration. The apartment is checked for legal “purity”, absence of debts and encumbrances, then the necessary documents are prepared and the transaction is formalized (with a notary or in simple writing).
In large agencies, each realtor performs his own specific work related to the sale or rental of real estate. Some are engaged in primary real estate, while others have proven themselves in the secondary market.
It is advisable for an agent for commercial real estate (non-residential premises) to have a certain knowledge base and extensive experience, since clients - owners of premises - sometimes require a special approach in their work.
A realtor involved in renting apartments needs to be a good psychologist in order to, taking into account the interests of all parties, resolve any problems that often arise in this type of transaction without conflict.
“Easy-going” specialists become successful in working with suburban real estate. They are well versed in the peculiarities of this market and know all its nuances.
How much does a realtor earn?
A real estate agent's earnings depend on the number of transactions he makes. According to statistics, within Russia their average salary is 50-60 thousand rubles. But this is an unstable amount of earnings, it all depends on the hard work of the specialist and other factors. The main amount of the salary comes from interest on the transaction.
The realtor who evaluates real estate makes good money. But he must have a higher economic or legal education. He must also take appraiser courses, join the appropriate organization and go to work with an experienced specialist to gain experience. A good specialist earns up to 80 thousand rubles. The profession is in demand and has prospects in the future.
The cost of realtor services varies in different regions, but does not differ too much. Typically, when buying and selling real estate, it is 3-6% of the cost of housing.
And one more question worries potential sellers and buyers: who pays the realtor, the seller or the buyer? As a rule, the realtor is paid by the customer of the transaction: if the seller has entered into an agreement with him, then on the day of the sale of the home he pays the agent; if the buyer contacts him, he pays for everything. The same goes for renting premises.
How to become a private realtor?
After gaining experience in an agency, you can open your own company. First of all, you need to register your business activity. If you decide to do business on your own, then it is enough to register an individual entrepreneur, but when opening a company with partners, you need to register a partnership.
After this, you need to find and rent office space, preferably closer to the city center. Then you can start looking for clients. Since modern buyers and sellers are looking for all the information on the Internet, it is necessary to open your own website.
Advertising posted on free bulletin boards works quite effectively. It is on them that most new proposals are posted.
It is recommended to call every phone number you pick up from the board and offer your services, this way you can build up a good client base.
With impeccable work, clients will offer your services to their family and friends, so you won’t be left without work.
