Real Estate Occupation Stats And Practices
Working as a real estate agent can be a rewarding and lucrative experience. It provides the opportunity to become an entrepreneur in an a billion dollar industry. The median gross income for a real estate agent is $43,500 with a sales volume of $1.5 million and an average transaction volume of 12 per year.
The type of transactions real estate agents engage in are foreclosures and short sales. Twenty-four percent (24%) of residential brokers have at least one commercial transaction per year.
Seasoned and new agents quickly learn to become skillful and proficient at building their client base. In addition to using internet and traditional resources realtors find value in querying their client network for additional buyers. Realtors obtain 21% of new business from existing clients and 21% from referrals. However, regardless of effort and superior marketing there are some things realtors can’t control. For the past three years it has been a trend for buyers to be disqualified for mortgage funding. This has posed the greatest challenge for brokers servicing motivated buyers. A variety of factors that hinder qualification include; greater scrutiny of credit reports, restrictions on eligible income, tighter income-verification standards, and lending paranoia from the federal government requiring lenders to pay (the buyers) mortgage insurance if FHA guidelines are breached. Agents can recommend budget management companies or reputable credit counseling services. They can typically structure a plan for buyers to qualify for mortgage financing within 12-24 months.
Real estate agents have options of which sector to focus on within the real estate industry. The majority of agents specialize in residential brokerage at a rate of 80%. The bias is understandable considering the high volume of inventory and buyers that provide unlimited income potential. Seventy-seven percent (77%) of residential brokers made selling houses their primary occupation. The high volume of single-occupation brokers is understandable considering earnings are affected by the amount of time invested in marketing, networking and selling properties.
In the information age it is imperative that business operators not only use social media but have an actual website. Real estate agents have recognized the importance of technology to obtain new customers with 64% having a web page advertising their services and homes for sale. As the use of smartphones and tablets expand sales agents should develop a digital profile that pervades traditional computers and mobile technology.
The real estate industry is a magnet for entrepreneurs that reject a finite scope of their earning potential. The industry gives motivated individuals the opportunity to work as many hours as they want and build their business into a thriving enterprise. Considering the progressive environment the real estate industry creates it makes sense that 80% of residential brokers are independent contractors within their firm.