Real estate is one of those extremely lucrative fields of work. If you establish yourself truly well in this industry, you can make so much more than a living.
This is why so many people choose to work in real estate. There are a few perks to it, besides the money.
As a real estate agent, you can work from home, too. That’s especially important during a coronavirus outbreak, like today. You can work from home and distance yourself more than many other people.
Sure, that may not be the reason why you should pick this exact field of work. But it’s definitely a plus!
If you’re just looking into this branch, you may not have the exact idea of what a real estate agent exactly does. There are actually so many things in the job description!
What all can a real estate agent do? What are the things that fit into the description of the job? Continue reading to find out!
What Does A Real Estate Agent Do, Exactly?
A real estate agent does a lot of things, and we will cover them all. But first, let’s talk about the main things related to real estate.
The most important thing is that a real estate agent helps with buying, selling, and leasing property. They move properties and they do it because a certain portion of the sales goes straight into their pockets.
That portion is called commission, and it’s an integral part of the realtor’s salary. Real estate agents don’t receive a steady paycheck, their earnings vary on the percentage of their commission and how many properties they helped move.
There are two basic types of real estate – residential and commercial. Residential real estate is something most people know about because everyone needed a residential realtor once in their life.
Residential real estate is properties made for living in. So, houses, apartments, even apartment buildings are residential property. There are far more residential real estate agents than commercial because they’re needed more.
Commercial real estate is about moving property for businesses. So, this time we’re talking about office buildings, warehouses, factories, and many other types of property.
Commercial real estate is a specific market because it can be tough to appraise commercial property. Commercial real estate agents usually only work in this field, and they don’t dabble in residential property much, and vice versa.
The reason behind that is that the changes in these two markets can be difficult to track. Changes in the residential real estate market can not affect the commercial market and the other way around. Of course, that only applies to large cities. In smaller cities and towns, a real estate agent usually works with all types of property.
Whenever someone thinks of a real estate agent, they think of them working in the office or showing a house. In reality, houses are shown only if the clients seem interested in the property.
And about the office, well, agents often choose not to work in an office. Many choose to work from home, because of certain perks working from home has.
Sure, you can organize time better when you’re not carpooling all the time, but that’s not the most important reason. The most important one would be avoiding the hefty desk fee from working at the brokerage’s office.
Paying the desk fee offers some benefits, though. It may seem like a waste of money but you get benefits in a way that you get a lot of walk-in clients. Brokerages don’t refer walk-in clients to a realtor that works outside the brokerage’s office, only to its own clients.
What All Can A Real Estate Agent Do?
When we’re talking about a real estate agent and what this person does, all we think about is helping sell or buy a property. Of course, that’s not the whole story.
In this section, we’ll cover all those things that fall into the job description of a real estate agent. So, let’s start:
- When a real estate agent takes up a job, there are a few things that have to be done before an official listing is made. Appointments with the client that is looking to sell or buy are made.
- The realtor has to ask certain questions even before the appointment and research the market for listed properties. Then, they look up the sales activity for similar property.
- This all helps the realtor gain a better idea of what they’re working with. This affects the decision whether to take up this client or not. If it seems like too much work, some realtors may choose to pass on a client.
- Also, one of the crucial pre-listing activities is to prepare a CMA. CMA is a Comparable Market Analysis, and it’s an analysis used to establish fair market value for a property.
- There’s some research to be done pre-listing, too. The realtor has to look up ownership and deed type, and public records about lot size. The realtor has to verify legal description of the property and land use according to the deed restrictions.
Listing The Property
- Once all pre-listing requirements are fulfilled, it’s to list the property in an MLS database. MLS is a multi level service database which helps realtors find a property according to their needs easier.
- An integral part of the listing is a home inspection. A good real estate agent will supervise the inspection of the property to make sure everything is in order.
Loan Application Process
- More often than not, the client needs a loan to acquire a property. It’s up to the real estate agent to make sure that everything is going smoothly. The agent will help out with the application in any way possible.
- The real estate agent can also work as a loan officer. This can especially be convenient if you need a loan to buy a property. The loan officer can’t issue you any loan you may want, but they can offer a wide range of credit.
- A real estate agent can issue any type of loans to someone that isn’t their client for real estate. If they are, the law prohibits them from issuing some types of loans to you.
- Appraisal is one of those things that cannot be avoided when you’re looking to buy or sell a lot. Doing an unofficial appraisal doesn’t give the desired results.
- Your chosen real estate agent will schedule and oversee the appraisal themselves. Also, if the appraised value seems too low, your agent will work to question the appraisal report.
- A real estate agent can also work as a real estate appraiser. This may be an interesting side job for a real estate agent, because it requires working in the same field.
- There isn’t any legal obstacle that might stop a realtor from becoming a real estate appraiser, too. Beware of the conflict of interest – the appraiser cannot make a report for a client that is also their real estate client. It can help the realtor gain a better idea of what value to expect after someone else completes the real estate appraisal.
- Once all parts of the process are finished, there are some things the agent has to take care of. For example, the agent has to organize where the closing will be held and so on.
- The realtor has to make sure everyone got their copy of the contract and all necessary documents. They have to go over contracts to make sure that everyone signed every document and contract.
- Also, the real estate agent has to access the MLS database to change the status of the property to ‘sold’. The realtor has to remove any marketing ads and similar things after the selling contract has been signed.
What All Can A Real Estate Agent Do? – Conclusion
To conclude, a real estate agent can and has to do a lot of things. They have to supervise the entire process of selling or buying a property.
It’s the duty of the realtor to make sure that every part of the process is going smoothly. A real estate agent can also work as a loan officer and a real estate appraiser.
There are a few things that a real estate agent has to keep in mind before they take up any of these jobs. The realtor will have to face some restrictions when it comes to work their dual license.
The restrictions are there to remove any conflict of interest. The real estate agent will and should always work to help out their client, but they may be tempted to break the ethics code to help the client.
That’s why there are law regulations to protect the best interests of every party involved during the buying or selling process. It’s easier to adhere to the rules when the law’s involved!