You have probably heard how commercial real estate has become a booming business in recent years. With so many opportunities available, you might be wondering how to become a commercial real estate agent. In this article, we will guide you through the steps and give you a good idea of how to get started.
What Does a Commercial Real Estate Agent Do?
A commercial real estate agent is someone who sells property for the purpose of doing business. Generally, this means helping people who are looking for space for their companies find the right fit. As a commercial real estate agent, you will be working with both business owners and property owners.
Commercial real estate agents must have a good knowledge of the local property market. Knowing the values of said property as well as the availability will be a major help. You will have to have a good idea of the options open for your clients and what will best fit their businesses.
One of the main jobs of a commercial real estate agent is advising clients on the right moves. Many clients will already have an idea of what their needs are and you will have to work with them. In order to do this effectively, you will also have to work within their means.
Knowing how likely a client’s business is to grow and finding a space to fit that is essential. There are a lot of factors at play when looking for commercial real estate. It is always best to anticipate the needs of your clients and find them spaces that fit.
There are several things involved when looking for commercial real estate for clients. The type of business they are will tell you a lot about what they need in order to thrive. It will also tell you how much space they are going to need should they want to expand or downsize.
As a commercial real estate agent, you will be a big part of your clients’ lives. It is important that you are able to effectively manage their expectations. A large portion of your job will be dedicated to fostering these relationships and generating leads.
How To Become A Commercial Real Estate Agent
In order to become a commercial real estate agent, you will have to go through a training process. Most states require you to undergo a set amount of education hours in order to get licensed. These hours must be completed at an accredited real estate school or institution.
Most real estate schools allow you to take classes online with an online course or in person. Depending on the type of learner you are, you will have to choose between one of these. Many of them can accommodate all kinds of schedules and learning styles to effectively train you.
After you have completed your education, you will then have to undergo a background check. This will check to make sure that you do not have any felonies or real estate related infractions. It will also check to make sure that you are in good standing with your financial institutions.
Once you have passed your background check, you will then be able to take the real estate exam. In most states, you must get at least a 75% on the exam in order for it to count as passing. Many real estate schools have some sort of exam prep to help you be as ready as possible.
After passing, you will then have to find a broker to work with and sponsor you. Working under a brokerage has many advantages, including the contacts you make starting out. In some states, however, you can begin working independently right away.
It is highly recommended that you work with a brokerage right after getting licensed. The commercial real estate industry is highly competitive and difficult to break into. Working under a brokerage will allow you to get started on the right track. Making contacts early is important and will help you be successful.
What Is the Difference Between a Commercial and Residential Real Estate Agent?
If you want to become a commercial real estate agent, you might wonder about that distinction. There are two different types of realtor: commercial and residential. Knowing the difference can help you decide on the right one for your skills.
Residential real estate agents deal in the business of finding people homes. They work with individuals or families and help them find the right home for their needs. When people think about real estate agents, this is usually what comes to mind.
Residential real estate agents must be good with people and have a passion for houses. They must have social skills and must have an eye for residential real estate. A lot of their job is done on an emotional level and knowing how to relate to others is crucial.
A commercial real estate agent works with business owners to find spaces for their companies. This can be manufacturing or production space, retail space or many other categories. If you are interested in commerce and business, this could be the right choice for you.
Generally, commercial real estate will come with a much higher price tag. Because of this, it can generate a lot more income for the agents that sell it. However, it is also much more competitive and requires a lot more knowledge and technical skill.
A commercial real estate agent must have an in-depth understanding of the local economy. This will be essential for finding the right properties for your clients. It will also help you find clients and generate leads.
Knowing your interests and what you are good at will go a long way with becoming a commercial real estate agent. Commercial real estate agents must have people skills as well. However, their knowledge of the market and economy is much more important.
Can a Residential Real Estate Agent Sell Commercial Property?
If you have been wondering how to become a commercial real estate agent, you may also wonder about licensing. Most real estate schools don’t offer a commercial real estate license. This can get confusing and may lead to some questions about eligibility.
In most states, there is no difference in license for a commercial real estate agent. You simply get your license and can choose to practice in any specialization you want. The real challenge comes in generating leads and clients.
Since there is no specific license to become a commercial real estate agent, the impetus is on you. Getting hired at a commercial real estate broker will be the next step when it comes time to work. This is where it pays to do research and educate yourself on the local market.
Although there is no specific license for a commercial real estate agent, most schools will cover it. It may not be the main focus of the curriculum but a lot of the rules and regulations are the same. The only difference comes in finding the right clients and the right properties for those clients.
How much does a commercial real estate agent make a year?
According to the Bureau of Labor Statistics, the average commercial real estate agent makes $50,730 a year. However, this number will change depending on your state and your market. It is incredibly difficult to pin down exactly how much you can make in this industry.
However, there are a few deciding factors that can help you make more money. For example, working in a market that is desirable for business owners can work wonders toward getting a higher salary. You will make money based on commissions, so the number goes up when the properties are more expensive.
You can also make more money if you are working with higher end businesses. If a company requires more properties and is expanding, they will need more real estate. Businesses that are successful will always have a need for commercial real estate. This puts you in a good position to work with them and help them purchase those properties.
The real estate business is all about connections and the clients you have. Attaching yourself to lucrative clients will almost always generate more money for you. A commercial real estate agent is only as successful as their clients and it is important to network.
Is it hard to become a commercial real estate agent?
The tools you need to become a commercial real estate agent are not necessarily hard to come by. Getting your license isn’t particularly difficult, but it can take time and may require some work on your part. However, it certainly isn’t impossible and can be achieved by just about anyone with the right mindset.
The difficult part about becoming a commercial real estate agent is generating leads and finding clients. This is why it is so important for you to find a good brokerage to work with right away. They will act as a stepping stone for you to get your foot in the door with local business owners.
The other difficult aspect of becoming a commercial real estate agent is the research. Unlike with residential real estate, you will have to be incredibly in tune with your local business economy. This will help you identify potential clients and seek them out as leads.
Doing this research can be a major source of work for you as a commercial real estate agent. You will have to conduct it in a way that is helpful and efficient and then reach out to those clients. However, if done correctly, it can pay off in a big way and be incredibly lucrative.
How do commercial real estate agents make money?
Generally, commercial real estate agents make money through commissions from their sales. This means that you will get a percentage of the final closing costs for each property. This percentage will be negotiated between you and the clients you work with.
As a commercial real estate agent, you can work as a buying agent or a selling agent. Buying agents work with clients to buy property, whereas selling agents work with property owners. Selling agents will usually be responsible for marketing and staging the properties.
The category that you choose to go into will depend on your abilities and skill sets. For example, selling agents are usually responsible for listing properties and making them available. This is a great job for someone who is interested in marketing and social media in their work.
Buying agents on the other hand, are responsible for helping business owners find said properties. Buying agents need to be more in tune with people and have better social skills. The kind of person you are will have a big impact on the kind of work you do as a commercial realtor.
Do you need a degree to be a commercial real estate agent?
You do not need a four year degree in order to become a commercial real estate agent. Most agents attend an accredited real estate school to get their license. This is usually enough to get hired by a brokerage and begin working in commercial real estate.
There are, however, some four year institutions that have a real estate program available for students. This might be a good option if you have the means and the ability to put yourself through these programs. It may give you a slight edge when you are looking to get hired with a brokerage.
If you do not have the ability to get a four year degree in real estate, a real estate school will suffice. You will learn most everything that you need to know in order to get licensed to sell real estate. However, when it comes to doing market specific research, you will be on your own.
Many people find that they learn best on the job. This is why working with a reputable brokerage is so important to a new agent. You will learn many things that you might not otherwise learn doing your own research.
Who makes more money commercial or residential real estate?
Real estate agents are salespeople at heart. The job of an agent is to sell a client on a property and to make commission on that property. Because of this, that commission will determine your success as a real estate agent.
Generally, commercial real estate comes with a higher price tag than residential real estate. Because of this, it will usually generate higher commissions for the agent in the long run. However, this will vary widely with the market and with the individual clients.
One of the deciding factors on which type of real estate agent makes more money is the market. If you are working in an area that doesn’t have much commerce but high home values, residential may be more lucrative. It depends greatly on the market where you are working.
If you are able to land clients that are always in the market for new property, commercial could be better. Business properties tend to be more expensive, so you stand to make more in commissions. Your success will be entirely dependent on your clients and their needs.
How much do top commercial real estate brokers make?
Because of the higher price of commercial real estate, commercial agents can make a lot of money. Many of the top earning commercial real estate agents make over $100,000 a year. In fact, there are many who make seven figure incomes regularly.
If you live in an area that has a large commercial market, you could also make this kind of money. Large manufacturing markets have many opportunities for commercial real estate agents. Whether you are a buying or selling agent, the industry can be quite lucrative.
One of the most important things to figure out is what your local market is like and what the need is. This will help you figure out what the best plan of action is for you specifically. Catering to the needs of your community will make you more in demand and therefore more successful.
Making seven figures a year is possible for a commercial real estate agent who knows the needs of the community. Networking with local business owners and property owners is a great way to learn. Working with a reputable broker will also go a long way towards your success.
Who pays commission on commercial real estate?
The commission on commercial real estate comes out of the final closing price of the property. Generally, this is a percentage that is split between the different realtors and loan originators involved in the sale. Your specific commission will depend on the deal you strike and how many people are involved.
The higher price of commercial real estate is also dictated by the deeper pockets of clients. By generating leads with clients that have the means to buy bigger properties, you make more money. This is why it is so important that you know the needs of the business owners in your area.
These needs will also dictate whether you want to be a buying agent or selling agent. The commissions are usually split between all the agents so it is best to figure out where the needs are. An area that doesn’t have many commercial properties will not be lucrative for you as an agent.
To become a commercial real estate agent, you will have to be dedicated and hard-working. However, if you are able to harness these qualities, it can potentially be very rewarding. The beauty of the industry is that there are no ceilings and you can dictate your own success.