Saturday, August 28, 2010

2010-2011 Real Estate Job Outlook & Projections

Although beginning agents and brokers will face competition from their well established, more experienced counterparts in obtaining listings and in closing an adequate number of sales, the employment of real estate brokers and agents is expected to grow faster than average for all occupations.

There is a growing population who will require the services of real estate agents and brokers to buy their new homes. Young adults will be forming households in greater numbers and home sales will be sparked by the continuing desire for people to create passive investments and their perception that real estate will be a good investment over the long run. Due to the increasing use of the Internet, job growth will be limited. For example real estate virtual assistance are improving the productivity of agents and brokers, and transforming the way they do business. Moreover, prospective customers often perform their own searches for properties that meet their criteria by accessing real estate information online.

In addition to job growth in the real estate industry, a large number of employment opportunities will arise from the need to replace workers who transfer to other occupations or retire from the labor force. On average, real estate brokers and sales agents are older than most workers and are expected to leave the occupation within the next decade.

Part-time work for real estate brokers and sales agents is also expected to decline due to the sensitive swings in the economy, such as a recession. The demands for sales workers fall during periods of declining economic activity or rising interest rates. Although the occupation is relatively easy to enter, increasingly complex technological and legal requirements are raising startup costs associated with becoming an agent and making it more difficult for part-time workers to enter and become successful in the occupation.

Ambitious, well-trained people who enjoy selling, especially those with extensive social and business connections in their communities, should have the best chance for success.
According to the National Employment Matrix, projected employment by 2018 is expected to grow around 9% for brokers and around 16% for agents.

Increasing office automation and organizational restructuring will continue to make real estate virtual assistants more productive in coming years. Computers, scanners, e-mail, and voice message systems will allow real estate virtual assistants to accomplish more in the same amount of time and save your real estate firm on the cost of doing business expenses.

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
Land subdivision
Offices of real estate agents and brokers
Activities related to real estate
Lessors of real estate

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
Offices of real estate agents and brokers
Activities related to credit Intermediation
Activities related to real estate
Lessors of real estate

Commissions on sales are the main source of earnings of real estate agents and brokers. The rate of commission varies according to whatever the agent and broker agree on, the type of property, and its value. The percentage paid on the sale of farm and commercial properties or unimproved land is typically higher than the percentage paid for selling a home.

Commissions may be divided among several agents and brokers. The broker or agent who obtains a listing usually shares the commission with the broker or agent who sells the property and with the firms that employ each of them. Although an agent's share varies greatly from one firm to another, often it is about half of the total amount received by the firm. Agents who both list and sell a property maximize their commission.

Income usually increases as an agent gains experience, but individual motivation, economic conditions, and the type and location of the property also can affect income. Sales workers who are active in community organizations and in local real estate associations can broaden their contacts and increase their income. A beginner's earnings often are irregular because a few weeks or even months may go by without a sale. Although some brokers allow an agent to draw against future income from a special account, the practice is not common with new employees. The beginner, therefore, should have enough money to live for about 6 months or until commissions increase.
For the latest wage information:

The above wage data are from the Occupational Employment Statistics (OES) survey program, unless otherwise noted. For the latest National, State, and local earnings data, visit the following pages:

· real estate brokers
real estate sales agents

Related Occupations

Other occupations requiring knowledge of real estate include:

Appraisers and assessors of real estate
Property, real estate, and community association managers

Other sales workers who need these character traits include:

Insurance sales agents
Sales representatives, wholesale and manufacturing
Securities, commodities, and financial services sales agents

--Source: Bureau of Labor Statistics