Pursuing a Career in Real Estates - Essay Example

Module Pursuing a Career in Real E s A business in real e involves buying, selling or renting land with any immovable property in it like buildings and minerals. This business is recognized internationally. In the U.K., it is simply referred to as property which in turn refers to land and fixtures. Real estate is mainly used in probate law, meaning all interest excluding interest from money arising from sale trust or on land held by the deceased at death. In the U.S., this business involves legal formalities with the help of professionals like the real estate agents, payment of taxes, legalities to ensure title and a neutral party like a title company to handle money and documentation. Title companies’ main work is to make smooth the exchange of properties between the concerned parties, doing all the work for the buyer who can be a citizen or a foreigner (Tyson and Griswold 62). Unlike the U.S., other countries have rules in regards to what property foreigners can buy. In Mexico, for example, foreigners are not allowed to own property within 50 km of the coast or 100 km from the borders unless they have a Mexican trust or Mexican corporation title. In South Asian countries like Thailand, foreigners cannot own land, but properties in it can be purchased followed by land acquisition under a lease option of 30 years. However, this land acquisition is not assured because the government still insists that land ownership by foreigners is illegal. In the Philippines real estate development is one of the fastest growing businesses (Edwards 78). This paper discusses real estate as a possible business venture and the qualities of a successful real estate agent. THE REAL ESTATE BUSINESS SECTOR As the world economies evolve, individuals and organizations have seen the need to make smart investment choices. In his book, on investing in real estate, Eldred asks, ‘What types of markets offer the best opportunities for future profits? What type of markets alleviates risks?’ (20). Questions like these are the ones that an individual asks when they wish to invest. The answer to the questions lies in the real estate industry. Real estate development has had a positive impact on economies of nations over the years. This is because land is so much a limited resource that even reclaiming it from the seas is not a sustainable option. Thus, a smart investor invests and owns part of it so as to have a bargaining chip. Furthermore, its value rarely goes down, and even if it does it does not take long for its value to shoot once again. Fields in the Real Estate Business. Private property ownership, has led to the development and growth of real estate to a significant business sector, also called commercial real estate. In reality, real estate properties are always expensive thus; they require a significant amount of investment. In addition, each piece of land has unique characteristics, which has lead to development of different fields in the industry with specialists that evaluate the real estate and facilitate the transactions. Businesses in real estate include Appraisals, where a professional determines the value of the property (Edwards 78). Second is the brokerage, where a broker is paid a fee to facilitate the transaction between the two parties. Third is development, which involves land improvement for use via replacing or adding buildings. Fourth is net leasing, which ensures tenants pay rent plus the additional expenses that are supposed to be paid by the landlord. Fifth is property management, which involves managing a property on behalf of the owner. Sixth is real estate marketing and it entails managing the sales aspect of the property. Seven is real estate investing, which entails management of the investment in the real estate. Eight is the relocation services, and as the name suggests, involves relocating business or people to different countries or regions. Lastly is the corporate real estate, which deals with management of a corporation’s real estate to support its core business (Edwards 78). In each of the above fields, a business may specialize in residential, commercial, industrial, agricultural or special-purpose types of real estate properties. Residential properties are used by families and individuals in urban, suburban or rural areas. Commercial properties are mainly for small and medium sized businesses like shopping centers while industrial are for large businesses like factories. Agricultural properties are mainly farm lands and special-purpose properties which are for specific purposes like schools or cemeteries (Edwards 111). Qualities of a Successful Real Estate Agent. A real estate agent is supposed to blend into the real estate business. According to Edwards ‘…you do not need to be intellectually gifted to be a successful real estate agent. It is far more important to have common sense and knowledge of human nature.’ (6). He further explains the qualities required for a successful real estate agent. First, the individual needs to enjoy solving people’s problems. One must be skilled at working with people, and they should enjoy the challenges that accompany such problems. The individual must be able to acknowledge inevitabilities of obstacles and how to deal with them. Furthermore, they should be able to detach themselves from their client’s problem so as to maintain objectivity in solving of the problem. Second, one needs to be able to work with different kinds of people. Initially, before one develops a reputation in the industry, they will need to be able to handle all kinds of clients. Thus, they will need to have humility and ability to keep things in perspective and at the same time maintaining a healthy sense of humor. Thirdly, one needs to be a skilled listener. For a successful career, one needs to listen to their clients’ opinions and views. Experienced agents attest that effective listening skills are of importance to the real estate agents. This enables them to note the needs of clients and this places them at a better position to solve the client’s problems to their satisfaction. Fourth, one needs to be mature and emotionally stable. This enables one to gain the trust and confidence of the client and at the same time maintaining fairness and balance. Fifth, an individual needs to know their product. Knowing ones product and intelligently talking about it goes a long way in convincing the client. Sixth, it is essential that an agent is convinced of the products value. This makes it easy to be enthusiastic about the product, thus enabling one to transact with confidence. Seven, as Tyson and Griswold clearly state ‘There is a strong correlation between the location of your real estate investment and your financial success’ (316). It is essential to know the territory, the geographical area, crime rates, hospitals, shopping centers and schools. This helps in pursuing potential clients who want to associate with such an area. Eight, one needs to be flexible since the real estate arena is constantly changing due to technological advances and partly due to challenges brought by traditional ways of doing business. Lastly, one needs to persevere. It is not always easy especially with the changes that are experienced in the market. Quitting should not be in the mind of an agent who wishes for success in the real estate business despite the challenges faced. CONCLUSION Real estate businesses have developed over the years due to the minimum risks involved in the business as well as certainty of future profits. There are several sectors of real estate business, and they include appraisals, brokerages, development, net leasing, property management, real estate marketing, real estate investing, relocation services and corporate real estate. The different fields offer opportunities to those interested in engaging in real estate businesses. In addition, the growing population that invests in real estates ensures a ready job market for those who want to pursue real estate businesses. However, this is not enough because an individual needs to have vital qualities so as to succeed in business. Some of these qualities include perseverance, flexibility and ability to work with different people as well as knowledge on properties. Works Cited Edwards, Kenneth W. Your Successful Real Estate Career. AMACOM Div American Mgmt Assn, 2007. Print. Eldred, Gary W. Investing in Real Estate. John Wiley & Sons, 2012. Print. Tyson, E. and Griswold, Robert S. Real Estate Investing For Dummies. John Wiley & Sons, 2009. Print. Read More