About Brenda Savage
Brenda Savage is a Real Estate Broker and Instructor licensed in the State of Arizona. She has been active in the real estate industry since 1988, and has been a Real Estate Instructor since 1999.
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Real Estate Career Options
A career in real estate includes many different options and areas of expertise! Here is an overview of several career options. It is highly recommended that you speak with agents and brokers in your area of interest, and, if possible, find a mentor to work with initially. Each career option requires very specific knowledge, which, quite honestly, can only be gained through experience and continuing education. A mentor will assist you in entering the industry ethically and with a great support system, so that you will be able to provide the accurate information and guidance that your clients will require. In addition, each career opportunity in real estate requires certain personality characteristics, so it is wise to truthfully and openly consider your own strengths and weaknesses, and work toward building on your strengths. For example, if you absolutely hate paperwork, real estate may not be the best career choice for you, because paperwork is the backbone of the real estate transaction. However, you can always hire an assistant at some point, to handle the organization, filing, and processing of paperwork. Where you are weak, surround yourself with others who are strong in that area.
Let's look at some real estate career options:
Residential real estate sales:
Residential real estate sales is the career path most taken by licensees. It is exciting, interesting, fun, personally rewarding, and can be very financially rewarding, as well. However, residential sales is not an "easy" road to financial success. It requires building a business from scratch, excellent people skills, a lot of patience, great negotiation ability, attention to detail, excellent knowledge of real estate law, contract law, and agency law; marketing skills, compassion, and flexibility. Interestingly, many people get into real estate because the "flexibility" of the job and work hours are attractive to them. But, in real life real estate, the "flexibility" required is your ability to revise your life around your client's needs. Most people like to look at homes on the weekends. So, you'll be working weekends. Many people need to look at homes after work, and quite often listing presentations and contract writing occurs in the evening, so you'll be working evenings. During your first year or two in the business, it may be difficult to plan vacations or weekends away, because if you are a busy real estate agent, there will always be deadlines and tasks to be completed. When a property goes under contract, it is only the beginning of a multitude of events that you must oversee and insure are completed in a timely manner. If you are to be successful in this career, you must be available almost 24/7.
It takes a lot of work (yes, work!) and dedication to become successful in this career. No brokerage, no matter how large (and no matter what they promise you) will supply you with enough leads to make a living. You will need to generate your own business, create your own leads, and ultimately turn those leads into sales. If you are a driven, motivated, self-starter who doesn't require a lot of supervision and are compassionate and willing to learn everything you can about your local area and the residential real estate industry, then this could be a good career choice for you.
The beauty of residential real estate sales is that in essence, the only thing you have to "sell" is yourself. You listen to what your client wants and needs, and you help them find it or achieve it. You don't have to "sell" them on any particular neighborhood or property, you simply help them find what they are looking for. You can sell them an existing home, or you can sell them new construction. you are not limited to certain properties. Therefore, listening skills are a huge asset in building your business.
New Home Sales
In residential real estate, new home sales (in the right subdivision) can be one of the fastest routes to financial success, however, finding the right opportunity, the right subdivision, and the right market all come in to play. Add to that that most new home subdivisions require that the on-site agents work all weekend, every weekend, and typically provide a day or two off during the week. There is no compensation other than commission. And, on-site agents must stay with potential clients until the job is complete, in other words, if someone walks into the models at 5:00 p.m. and after looking for an hour and a half, wants to write a contract, then you will be working until that contract is written. And no, that doesn't mean you get to sleep in tomorrow! New home sales is far more structured, and competition for the best subdivisions is fierce. Additionally, you sell a product in new home sales. it is your job to convince the perspective buyer that this home, this neighborhood, and this lifestyle are exactly what they need.
The benefit to new home sales is that if you can get the right opportunity, leads will walk in the door, you won't have to market yourself, and there is not the task of building your own business.
On the down side, when the subdivision you are selling is sold out, you will need to find a new opportunity. Note: many savvy agents also buy their own home in the neighborhood that they are selling, and later market to other homeowners as "the area expert". Clearly, that agent has an advantage in the resale market in that subdivision, as most of the homeowners know that agent (as he or she sold them their home!). This can provide a great opportunity to transition into the resale market from new home sales.
Property Management
Residential Property Management
Managing residential rental properties can be very lucrative, but, in my opinion, requires a great deal of wherewithal and patience. You will be dealing with people from all walks of life, many with credit or income issues. You will be on call all of the time for property issues such as leaking roofs and broken appliances. You will be handling all of the issues, trust funds, and paperwork for landlords, and you will be expected to take care of the tenants and properties, all the while insuring that all landlord and tenant laws and requirements are followed to the "T".
The upside of residential property management is that you can build a business that ultimately can be sold, if it is run properly. You can create a lifetime of steady business. I have personally seen quality property management companies provide very, very good income for generations of family members. And, with the exception of being on call for problems with the rental units, you can usually work 9 - 5 weekdays, and take the weekends off!
Commercial Property Management
In managing commercial properties, you will more than likely be working "for" someone else, although you may choose at some point to start your own commercial property management company. The upside is that your hours will most likely be normal weekday hours, and you may have a steady paycheck. There are a multitude of legal nuances, lengthy leases and contracts, and specific knowledge of the industry required.
Commercial Sales
Commercial real estate sales can be the most financially rewarding option for a real estate career, but it comes with a price.Commercial sales can take months, sometimes years to close escrow. Getting established as a commercial agent can also take far longer than in residential real estate, and quite often a commercial brokerage will require you to apprentice for a certain length of time. My personal opinion is that commercial real estate sales is far more cut-throat and competitive than residential real estate, so if you are tough, motivated, and can see the "big picture", then this may be the career choice for you. Be sure to align yourself with a reputable brokerage so that you effectively learn the commercial end of the business. This expertise requires a great deal of very specific knowledge regarding zoning laws, potential uses, commercial utilities, tenant improvements. the list goes on and on. Commercial real estate sales will require staying very up to date on local, county, state, and federal laws and requirements, as well.
Time Share or Vacation Ownership Sales
Some states require that you are a real estate licensee if you are selling time shares, or fractional ownership. Others do not require a license. Pros: leads will be provided for you. Cons: often a tough sell. Typically commission only.
Business Brokerage
A very specialized practice, business brokerage has different requirements in different states. Again, one should mentor with or apprentice for a knowledgeable practitioner, as there is much to know and learn in this industry. Additionally, it can be quite litigious, as business owners can be looking for a "responsible party" if the business fails.