REAL ESTATE AGENTS, BROKERS, AND APPRAISERS

Nature of the Work

The purchase or sale of a home, or an investment property, is not only one of the most important financial events in peoples' lives, but one of the most complex transactions as well.  As a result, people generally seek the help of real estate agents, brokers, and appraisers when buying or selling real estate.  Real estate agents and brokers have a thorough knowledge of the housing market in their community.  They know which neighborhoods will best fit their clients' needs and budgets.  They are familiar with local zoning and tax laws, and know where to obtain financing. Agents and brokers also act as a medium for price negotiations between buyer and seller.

Training, Other Qualifications, and Advancement

Real estate agents and brokers must be licensed in every State and in the District of Columbia.  All States require prospective agents to be a high school graduate, be 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 on laws affecting the sale of property.  Most States require candidates for the general sales license to complete at least 30 hours of classroom instruction and those seeking the broker's license to complete 90 hours of formal training in addition to a specified amount of experience in selling real estate (generally 1 to 3 years). 

Individuals enter real estate appraisal from a variety of backgrounds.  Traditionally, persons enter from real estate sales, management, and finance positions.  However, a growing number of people are entering appraiser jobs directly from college.  College courses in real estate, finance and business administration, economics, and English are helpful.

Job Outlook

Employment of real estate agents, brokers, and appraisers is expected to grow about as fast as the average for all occupations through the year 2005 as a result of the growing volume of sales of residential and commercial properties.  Despite this rising demand, however, the large majority of job openings will be due to replacement needs.  Each year, tens of thousands of jobs will become available as workers tranfer to other occupations or leave the labor force.  Because turnover is high, real estate sales positions should continue to be relatively easy to obtain. Well-trained, ambitious people who enjoy selling should have the best chance for success.

Earnings

Commissions on sales are the main source of earnings of real estate agents and brokers few receive a salary.  The rate of commission varies according to 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 that paid for selling a home.

Real estate agents, brokers, and appraisers who usually worked full time had median weekly earnings of $507 in 1992.  The middle 50 percent earned between $323 and $802.  The top 10 percent earned more than $1,247 and the lowest 10 percent earned less than $223.

Additional information can be obtained by contacting the following organizations:

National Association of Realtors, 777 14th St.  NW, Washington, DC 20005.

Appraisal Institute, 875 North Michigan Ave., Suite 2400, Chicago, IL 60611-1980.

American Society of Appraisers, P.O.  Box 17265, Washington, DC 20041 1-800-ASA-VALU.

Details on licensing requirements for real estate agents, brokers, and appraisers are available from most local real estate and appraiser organizations or from the State real estate commission or board.


