Significant Points
Real Estate agents can often set their own hours. Consequently, they can arrange their work so they can have time off when they want it.
A license is required in every State and the District of Columbia.
Many work part-time, combining their real estate activities with other careers. More than two-thirds of real estate agents and brokers were self-employed in 2000.
Nature of the Work
Real estate agents usually are independent sales workers who provide their services to a licensed real estate 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 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 may help to arrange favorable financing from a lender for the prospective buyer that often makes 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.
Working Conditions
Advances in telecommunications and the ability to retrieve data on 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, much of their time is spent away from their desk-showing properties to customers, analyzing properties for sale, meeting with prospective clients, or researching the state of the market.
Training, Other Qualifications, and Advancement
In every State and the District of Columbia, real estate brokers and sales agents must be licensed. Prospective agents must be a high school graduate, at least 18 years old, and pass a written test. The examination-more comprehensive for brokers than for agents-includes questions on basic real estate transactions and laws affecting the sale of property. Most States require candidates for the general sales license to complete between 30 and 90 hours of classroom instruction. Those seeking a broker's license need between 60 and 90 hours of formal training and a specific amount of experience selling real estate, usually 1 to 3 years. Some States waive the experience requirements for the broker's license for applicants who have a bachelor's degree in real estate.
State licenses typically must be renewed every 1 or 2 years, usually without examination. However, many States require continuing education for license renewal. Prospective agents and brokers should contact the real estate licensing commission of the State in which they wish to work to verify exact licensing requirements.
Earnings
The median annual earnings of salaried real estate agents, including commission, were $27,640 in 2000. The middle 50 percent earned between $19,530 and $45,740 a year. The lowest 10 percent earned less than $14,460, and the highest 10 percent earned more than $78,540. Median annual earnings in the industries employing the largest number of salaried real estate agents in 2000 were as follows:
| Residential building construction | $44,940 |
| Subdividers and developers | $32,030 |
| Real estate agents and managers | $27,770 |
| Real estate operators and lessors | $20,770 |
Median annual earnings of salaried real estate brokers, including commission, were $47,690 in 2000. The middle 50 percent earned between $30,630 and $80,250 a year. The lowest 10 percent earned less than $18,080, and the highest 10 percent earned more than $143,560 a year.
Commissions on sales are the main source of earnings of real estate agents and brokers. The rate of commission varies according to agent and broker agreement, the type of property, and its value. The percentage paid on the sale of farm and commercial properties or unimproved land usually is higher than the percentage paid for selling a home.
Commissions may be divided among several agents and brokers. The broker and the agent in the firm who obtained the listing usually share their commission when the property is sold; the broker and the agent in the firm who made the sale also usually share their part of the commission. Although an agent's share varies greatly from one firm to another, often it is about half of the total amount received by the firm. Agents who both list and sell a property maximize their commission.
Income usually increases as an agent gains experience, but individual ability, economic conditions, and the type and location of the property also affect earnings. Sales workers who are active in community organizations and local real estate associations can broaden their contacts and increase their earnings. A beginner's earnings often are irregular because a few weeks or even months may go by without a sale. Although some brokers allow an agent a drawing account against future earnings, this practice is not usual with new employees. The beginner, therefore, should have enough money to live on for about 6 months or until commissions increase.
Click on the following link to get state specific information: Arello State Directory .
**This information was obtained from the U.S. Department of Labor**