Real Estate Brokers and Sales Agents Job Outlook

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Real Estate Brokers and Sales Agents Held About 517,800 Jobs in 2008

Employment

In 2008, Real Estate Brokers and Sales Agents held about 517,800 jobs; Real Estate Sales Agents held approximately 76 percent of these jobs.

Many real estate brokers and sales agents worked part time, combining their real estate activities with other careers. About 59 percent of real estate brokers and sales agents were self-employed. Real estate is sold in all areas, but employment is concentrated in large urban areas and in rapidly growing communities.

Most real estate firms are relatively small; indeed, some are one-person businesses. By contrast, some large real estate firms have several hundred agents operating out of numerous branch offices. Many brokers have franchise agreements with national or regional real estate organizations. Under this type of arrangement, the broker pays a fee in exchange for the privilege of using the more widely known name of the parent organization. Although franchised brokers often receive help in training sales staff and running their offices, they bear the ultimate responsibility for the success or failure of their firms.

Real Estate Brokers and Sales Agents are older, on average,than most other workers. Historically, many homemakers and retired persons were attracted to real estate sales by the flexible and part-time work schedules characteristic of the field. These individuals could enter,leave,and later return to the occupation,depending on the strength of the real estate market,their family responsibilities,or other personal circumstances.

Nature of the Work

One of the most complex and significant financial events in peoples' lives is the purchase or sale of a home or investment property. Because of this complexity and significance,people typically seek the help of Real Estate Brokers and Sales Agents when buying or selling real estate.

Real Estate Brokers and Sales Agents have a thorough knowledge of the market in their communities. They know which neighborhoods will best fit 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 intermediaries in price negotiations between buyers and sellers.

Real Estate Agents usually are independent sales workers who provide their services to a licensed Real Estate Brokers on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent's sale of the property. Brokers are independent businesspeople who sell real estate owned by others; they also may rent or manage properties for a fee.

When selling real estate, brokers arrange for title searches and for meetings between buyers and sellers during which the details of the transactions are agreed upon and the new owners take possession of the property. A broker may help to arrange favorable financing from a lender for the prospective buyer; often,this makes the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for cosing sales; in others,lawyers or lenders do.

Education and Qualifications

In every State and the District of Columbia, Real Estate Brokers and Sales Agents must be licensed. Prospective agents must be high school graduates, be at least 18 years old, and pass a written test administered by the State. Agents and brokers must be high school graduates. In fact, as real estate transactions have become more legally complex, many firms have turned to college graduates to fill positions. A large number of agents and brokers have some college training.

Earnings

The median annual wages, including commissions, of salaried real estate sales agents were $40,150 in May 2008. The middle 50 percent earned between $27,390 and $64,820 a year. The lowest 10 percent earned less than $21,120, and the highest 10 percent earned more than $101,860. Median annual wages in the industries employing the largest number of real estate sales agents in May 2008 were:

Residential building construction - $49,620
Land subdivision - $44,410
Offices of real estate agents and brokers - $41,320
Activities related to real estate - $36,410
Lessors of real estate - $32,150

Median annual wages, including commissions, of salaried real estate brokers were $57,500 in May 2008. The middle 50 percent earned between $36,420 and $93,970 a year. Median annual wages in the industries employing the largest number of real estate brokers in May 2008 were:

Residential building construction - $63,280
Offices of real estate agents and brokers - $59,710
Activities related to credit Intermediation - $57,740
Activities related to real estate 56,140 - $56,140
Lessors of real estate - $47,230

The information source: Bureau of Labor Statistics at http://www.bls.org

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