New Jersey Real Estate Careers

A single agent may handle both ends of the transaction, technically called 'dual agency'. Dual agency requires the consent of both the buyer and seller in a transaction. There are also occasions when agents working under the same broker represent both the buyer and the seller. Disclosure is required in these cases as well.

Agent Transaction Fees flow through the Broker
The commissions earned first goes to the broker, and then, depending on the agent and broker relationship, a portion of it is distributed to the agent. The more productive agents have the ability to negotiate terms with the Brokers they are representing.

Other types of transactions
The multi-list transaction, described above, is the most common in real estate deals involving agents and brokers. However, there are other types of listings that garner varying transactional fees. Here are some examples:

Agents may choose to specialize in certain areas such as commercial, industrial, or residential real estate. The most successful agents are comfortable working through legal, financial, and economic conditions, and generally have strong demographic knowledge of the area they serve. All of the knowledge the agent has is more information he or she can provide to the buyer, resulting in more sales for that agent.

What about benefits?
Because agents are usually independent contractors working for the brokers, benefits are generally limited. You should know also, that as an independent contractor, you need to be able to support yourself for some period of time before you begin influencing and getting commissions on transactions. Some Brokers may have special programs set up for just licensed agents. Here are some questions to consider asking Brokers before signing on with one:

Why should I get involved in the real estate profession?
There are so many opportunities that come along with being a real estate professional. You can make it a full time, or a part time job. There is also opportunity beyond being an agent or salesperson. Advancement opportunities may be different careers, or just higher positions in the real estate field. Agents can gain expertise in their fields through experience, and use that to make a higher commission, and therefore, earn a higher income. Agents may also choose to become brokers, by continuing their education, and applying for another license. Without a broker license, agents may become managers in their firms, in charge of sales, or general operations. If an agent chooses to do so, he/she may apply to become a broker, and then open an independent firm. With the right education and experience, brokers or agents may also enter property management, mortgage financing, investment counseling, land development, etc. It is also a good idea for agents and brokers to take continuing education courses, through which they can earn various designations that add prestige to their names.

Do I have the opportunity to make a lot of money in the real estate field?
Based upon information gathered in 2000, the average annual earnings for agents and brokers were $27,640, and $47,690, respectively. For agents, the highest ten percent earned over $78,540, while the lowest ten percent earned less than $14,460. In the brokerage field, the highest ten percent earned more than $143,560, while the lowest ten percent earned less than $18,080. Again, earnings directly reflect the amount of work put into the job, so there is enormous potential. This is because income is earned through commission, which is a percentage of the amount that the listed property sold for. The amount of commission depends on the particular agreement made, the firm that is used, and the type of land involved in the transaction. Agents who list and sell property earn more profits than they would by just representing a buyer or seller. Though income will normally increase with the gain of experience, the condition of the economy plays a large role in real estate. If consumer confidence is low, fewer homes will be purchased, though many may be up for sale. It may be difficult for new agents to get started, as it is hard to make a sale without a reputation or record in the industry. Therefore, it is important that new agents, and even new brokers, have enough of a cash flow to support themselves for the first six months to one year of employment. (Occupational Outlook Handbook, US Department of Labor, Bureau of Labor Statistics)

Educational
Although most of the educational background for agents and brokers is not required, it is becoming preferred as the field becomes more popular and competitive. High school diplomas, however, are typically a requirement for any firm. Most states will require that before a license can be obtained, the applicant should have between 30 and 90 hours of classroom instruction on the topic of real estate. Most brokerage firms do not require a college degree, but trends have shown that the majority of agents and brokers being hired do have them. Beneficial college courses to take for preparation in the field of real estate include real estate, financing, business management, statistics, law, economics, and writing. Also useful, would be public or consumer relations, in order to interact well with customers, and voice and diction, for speaking purposes. Many colleges and universities are now offering special programs that focus on instruction towards a bachelor's degree in real estate.

Experiential
In order to become a broker, a sales agent must have, on average, one to three years of agency experience, or other real estate experience. It is not necessary for people wishing to become agents to have experience, as it is nearly impossible to have experience without a real estate license.

General
General requirements include those that hold nationwide, regardless of any other requirements a state may hold. No matter what, agents and brokers must be licensed in each state that they plan to practice in. An applicant for an agent or broker license must have reasonable knowledge of the English language, and be a citizen of the United States. Any applicant that has been previously convicted of a crime must provide evidence of an Executive Pardon, Certificate of Good Conduct, or a Certificate of Relief from Disabilities. Age requirements vary from state to state, but license applications for anyone under the age of 18 will be refused. All states require some type of written test to obtain a broker or agent license.

Personality
It is very important for brokers and agents to interact well with their clients and business associates. Most employers will look for a pleasant attitude, trustworthiness, and dependability. It is also important that an agent or broker be neat, organized, and concerned with intricate details. In order to work well with their clients, agents and brokers should have the ability to remember names and faces well. Relationships with clients are integral with buying and selling properties. Clients must trust their agents and brokers, or a sale is nearly impossible.

Salesperson
In order to obtain a sales license in real estate, it is required that the applicant be at least 18 years of age, and have a high school diploma or GED. The applicant must complete a 75-hour course before application, and then pass the licensing examination. The applicant must then apply for the license through a sponsoring broker. This broker serves as certification of the applicant’s good character and integrity. The Real Estate Commission must be satisfied with the applicant’s reputation in order to grant licensure. The licensure fee for a salesperson license is $100.00.

Broker
A real estate broker applicant must be at least 21 years of age. The applicant must have a high school diploma or GED, and have been a licensed sales person for the three years right before application, as a full time employee of a broker. In addition, the applicant must have completed 150 hours of course instruction, consisting of 90 hours of general real estate, 30 hours of Agency and Ethics, and 30 hours of Office Management and related topics. When these hours have been completed, the applicant must submit proof of completion along with an Experience Report for Broker Applicant form. When the applicant may take the state examination when all of this has been completed, and he/she is declared eligible. The applicant cannot request issuance of a license more than one year after he/she has completed all of the pre-licensing requirements. The fee for a broker’s license is $160.00.

In the real estate field, professionals may continue their education while employed in order to gain recognition for their expertise and experience. Such prestige is noted by designations that follow their names. The following provides a list of these designations, their meanings, and information on how they are obtained.

Designation	Significance in the Real Estate Profession
ABR	Accredited Buyer Representative: There are only 4,000 ABR designated real estate professionals in the Americas. It is a designation awarded by the National Association of Realtors® (NAR), and requires experience in representing buyers, a written exam, and course instruction. This designation is important to those looking to purchase real estate, as ABR signifies expertise on the buyer side of the transaction.
ABRM	Accredited Buyer Representative Manager: This is awarded to real estate professionals who have completed a course with the Real Estate Buyer's Agent Council (REBAC), as well as passed a written examination. The professional must also be the owner of a firm, manager, or broker, with at least two years of experience with managing buyer representatives, or experience with managing at least 25 transactions with buyer agents. The designated professional must also be in good standing with the NAR, and REBAC.
ALC	Accredited Land Consultant: These designated professionals are experts in five types of transactions. These types consist of (1) farms and ranches, (2) undeveloped land, (3) transitional and development land, (4) wholesale and subdivision of lots, and (5) site selection. Requirements include recognition and respect from the Realtors® Land Institute (RLI), and at least 3 years as a Realtor®. In addition, five core courses, and one elective course at the RLI Land University in areas such as Planning and Design, Agricultural Land, and Site Selection.
ARM	Accredited Residential Manager: This designation is awarded by the Institute of Real Estate Management, (IREM), for real estate professionals that manage residential property such as apartment complexes and homeowners' associations. It may also be given to resident managers, property managers, and asset managers.
CBR	Certified Buyer Representative: This designation is sponsored by national Realtor® boards, and is awarded only after three days of buyer agency training, in which the skills needed to help buyers find property and negotiate for it are taught.
CCIM	Certified Commercial Investment Member: This is awarded only to Realtors®, tax attorneys, real estate attorneys, financial planners, financial managers, investment advisors, and other professionals. It is a symbol of training in commercial and investment real estate, and is earned after taking four graduate level courses and one introductory overview course.
CIPS	Certified International Property Specialist: Those designated are considered reliable sources of information for experts in the international real estate market. Requirements for designation include a seven-day program of study, dealing with issues such as currency and exchange, transnational transactions, and cross-cultural relationships.
CPM	Certified Property Manager: This designates outstanding experience and education in the field of property management. Those designated are experts in managing different types of properties, such as apartment complexes and office buildings. Becoming a CPM requires certain core and elective courses given by IREM.
CRB	Certified Real Estate Brokerage Manager: CRB is a program for Realtors® interested in gaining expertise in the areas of brokerage management, human behavior skills, as well as, recruitment and training. It can only be earned after at least 75 transactions have been made within 5 consecutive years, and after the completion of 18 credits. In addition, one must have a bachelor's, masters, or Ph.D. in real estate, or be designated with CCIM, CIPS, CRB, or GRI.
CRE	Counselor of Real Estate: When one is designated as a CRE, it signifies a membership in a well-respected group of real estate professionals known throughout the world. It also designates exemplary skill in the area of problem solving for such specializations as litigation, asset management, general analysis, etc. Membership in the group is by invitation only, as it is highly selective, currently including only 1,000 members.
CREA	Certified Real Estate Appraiser: This simply designates someone as a licensed professional in the area of appraising small areas of land. This includes residential areas, vacant land, small commercial properties, and other similar properties.
CRS	Certified Residential Specialist: CRS indicates a residential specialty and a higher level of education in that area. It is the highest designation in the industry, and affiliates those designated with other professionals on their level, both nationally and locally. Most importantly, a CRS designated agent or broker can provide expertise specific to the areas in which they offer their services.
E-PRO	E-PRO does not stand for any organization. It means that the designated agent or broker has completed 5 online courses, and is known as an Internet Professional.
GAA	General Accredited Appraiser: This designation is supported by the National Association of Realtors®, and is awarded to appraisers with education and experience that exceeds state and national requirements.
GRI	Graduate of the Realtors Institute: This is a nationally recognized real estate designation of the highest prestige. One can earn it only after 92 hours of course instruction, and is available to members of state and local Realtor® associations, as well as the NAR. The GRI symbol stands for professionalism and expert knowledge in one's field of real estate. The course instruction includes three, five-day programs involving Residential Real Estate, Advanced Residential Real Estate, and Specialty Real Estate.
LTG	Leadership Training Graduate: This is only awarded by the Women's Council of Realtors®, and requires four one-day courses.
QSC	Quality Service Certified: This is the most important designation, as it signifies accountability, reliability, and consistent quality of service with every transaction.
RAA	Residential Accredited Appraiser: This designation is supported by the National Association of Realtors®, and is awarded to appraisers with education and experience that exceeds state and national requirements, with concentration in the residential area.
RCE	Realtor® Association Certified Executive: This designation indicates association executives who have had many hours of course study in the management of a Realtor® Association.
SIOR	Society of Industrial and Office Realtors®: SIOR designees are highly respected and well known producers in the brokerage business. Certification requires a written examination, a CCIM or RICS designation, or 30 credit hours of real estate coursework. Also, a half-day seminar on ethics and moral standards must be completed.
SRES	Seniors Real Estate Specialist: This designation is earned after completion of a 2 day class or home study, and signifies expertise and experience in assisting seniors with the buying and selling of real estate.

Real estate agents or salespeople are often mistakenly called Realtors®, as a Realtor® is a registered trademark reserved for members of the National Association of Realtors®. The NAR® promotes the highest ethical standards in the real estate brokerage business. To become a member of NAR®, one must be licensed to sell real estate in an individual state, pay member fees, attend orientation classes, and have a formal induction. NAR® is composed of not only agents, but also of brokers, salespeople, and other members of the real estate industry. NAR® serves as a research facility, educational facility, and information exchange channel for the country's real estate experts, and it also provides information for any property owner seeking it. There are also Realtor® Associations at the state level, which strongly hold to the organization's strict code of ethics. Many agents and brokers become members of NAR® because of the prestige and recognition that comes along with being a Realtor®.