The concept of real estate really means the plan or intention of real estate. So what is your plan or intention? Better yet, what is the plan or intention of the various players in the real estate industry or those involved in real estate transactions?
Real estate is land, or something attached to land also known as known as real property. There are residential, commercial and industrial real estate agents, buyers and sellers.
The real estate industry has agents, licensing agencies, training companies, brokerages and an endless supply of those looking to provide resources to those listed above.
Personal property is most often excluded from a real estate transaction. Leave it off the purchase agreement whenever possible. Do an itemized bill of sale instead.
Money and the desire for security drive the real estate market and are what is behind the actual concept of real estate. Ownership means you have secured something in this case real property. People want to think they are secure, stronger and safer. Real Estate makes them feel as if they are.
The housing market is determined by availability of funds and the desirability of the available properties. If a property will not sell it is because of presentation or pricing. Lower the price, it will sell. Do the best job of informing those in the local market for your type of property and an interested buyer will investigate and ultimately you will be selling properties.
New and experienced real estate agents work under a licensed broker and are not yet their own boss. The broker will charge those real estate agents a desk fee and other types of fees just to keep their licenses active and be able to do their jobs.
When a agents sell homes the broker takes a percentage of the sale as well. When a real estate professional is starting a new career this eats up quite a bit of their income.
New agents in most states have to pass a licensing exam and no college degree is needed. This licensing exam will usually require you to pass an exam in a preparatory course before you are eligible to take the state exam for your actual real estate license and are hopefully on your way to a successful career.
Still the fail rate is nearly 50% in Florida for the state exam. Even being a real estate agent has startup expenses. This real estate license (not the test just additional training) usually is repeated every 2 years.
What is a realtor? It is someone who pays for a the right to be held to higher ethical standards and display that they are. In most cases you will benefit from being a realtor and not just a sales agent. I have a love/ hate relationship with the NAR as do many realtors.
Residential real estate is where most agents will start. This part of real estate is simply assisting potential buyers purchase real estate as a buyer's agent. You will be showing properties, holding open houses (to find a buyer) and hoping for an income.
If you are more of a self starter and taking advantage of training you will soon want to become a listing agent to increase your business and income.
Real estate agents who assist sellers usually start off selling single family homes not commercial properties. They assist with selecting the selling price/ asking price of the property and place the listing in the multiple listing service covering their area. These real estate professionals hope to someday set their own schedule and be their own boss.
Commercial real estate agents and industrial real estate agents are some of the highest paid agents. On the down side they also get fewer checks. My brother in law is a commercial broker and sometimes he makes millions, most of the time he lives on a budget.
Think of it this way. How many commercial sales are there in your area? How many residential sales? What is the median price of each? In most cases the steady income will come from selling traditional residential real estate and focusing on the median price.
The residential side is also easier to break into for new real estate agents. Most real estate investment trusts will not deal with a new agent.
My mother in-law sold a $45,000,000 dollar home and has sold many in the $20,000,000 range. How did she get her start? By selling her own home. She was already a millionaire and her husband (my father in-law) was a commercial developer and real estate broker.
This is a very difficult area to break into. We sell quite a few multi million dollar homes but the bulk of our business is single family homes closer to the median range and assisting buyers.
Probably two or three times a month I have someone contact me and say they are a real estate investor. Most are rank armatures who will want you to do research or free work for them and will then waste your time.
Real estate investing is a tricky business so be careful and don't make unrealistic promises to them. Professionals will spot you a mile away. Start your business as a buyer's agent like most people do. Learn the job and find a mentor. Soon you will master the concept of real estate.
407-575-5392
Wendy Morris LLC
DBA Wendy Morris Realty
Licensed in the State of Florida
BK 3146762
16797 Broadwater Avenue
Winter Garden, Florida 34787
