By James R. Hagerty
Special to RealEstateJournal
Question: What is the difference between a real-estate agent and a real-estate broker and what education and training is needed to enter these fields? If someone has a background in architecture, zoning and planning and wants to work in real-estate development, what can they do to find a job in this field?
--Andre, Indianapolis
Andre: In general, an agent works under the supervision of a broker, who has more experience and training. But the terminology can be confusing. In New York, for example, agents are commonly called brokers.
In most states, becoming an agent is pretty easy -- perhaps too easy. States usually require around 30 to 60 hours of instruction, followed by an exam, says Walt Molony, a spokesman for the National Association of Realtors. In New Jersey, people who want to become agents must complete 75 hours of course work. Obtaining a hairstyling license in New Jersey, by contrast, requires 1,200 hours of instruction.
To become a broker, an agent generally must meet certain requirements for experience, do further course work and pass another state exam. Requirements vary widely from state to state.
Succeeding as an agent is far more difficult than becoming one. The work is usually done on a commission basis, so if you don't complete any transactions, you don't get any compensation. Real-estate firms rarely provide such benefits as health insurance or retirement funds.
Some owners of real-estate brokerage firms say that around a third of the people who become agents give up within a year or so because they aren't finding enough customers to earn a decent living. It helps to have an engaging, cheerful personality to attract clients. You need a thick skin to endure the many snubs you will endure when approaching potential customers. Once you do find customers, you need loads of patience to cope with the ones who can't make up their minds or pull out of deals at the last minute.
Experience as an agent could be valuable for someone who wants to go into real-estate development. So would working for a real-estate developer. Knowledge of finance and real-estate law would be very helpful. Reading books by Donald Trump may not be necessary.
