There is always a need for commercial real estate agents as long as people keep purchasing and leasing property. Naturally, anyone looking to invest in property wants a stress-free experience with someone helping to find their dream home, profitable commercial building, or selling their home. As someone who is getting ready to become a realtor, it becomes crucial to decide whether to become a commercial or private property agent.
The first main difference between the two types of agents is the type of property they handle. There are some differences in the level of education required, the work culture related to the different environments, and of cause the amount of commission earned after a successful sale.
The decision largely depends on the vision you have about your career in the business, and the steps you have already taken towards becoming a property agent. Start searching for good real estate training now.
The Difference Between A Commercial And Private Property Agent
Commercial agents spend a significant amount of time negotiating properties including entire apartment complexes, office buildings, hospitals, and even malls. Private agents, on the other hand, focus on residential real estate negotiating the sale of houses, apartments or condominiums.
The Commercial Agent
The return on investment drives a commercial realtor and are sometimes thought to take an emotionless approach and instead focus on hard numbers. A commercial agent must also be adept at calculations and realize that their clients want a good investment and not a dream property.
Working in the commercial real estate is a corporate affair and more data-driven. The agents have to present data with good numbers to win over clients. Commercial property clients are more concerned with cap rates, monthly ROI, and gross rent multipliers. These are all elements that a commercial agent should know off the top of their head.
The reality is that dealing with commercial property comes with much significant risk. However, there is always the possibility of benefiting from a larger commission. On the other hand, the sale commissions do no come as often because commercial property do not have a high turnover rate.
The Private Property Agent
Residential sales take a softer approach, and you often will not find agents dealing with such property concerning themselves with numbers. Residential realtors rely on quality pictures showcasing the property as a primary marketing method. Their role is to find their clients their dream home and get them in the house as soon as they desire.
The private property realtor can choose all forms of online and offline marketing methods to reach out to potential clients. For instance, most usually use classic flyers and circulars, and billboards as advertising tools. Now that most companies have also taken their business online, the agents also make use of social media to reach clients.
A private property agent might earn ten times less in a single commission compared to a commercial realtor. However, private property has a higher turnover rate, and with many listings, the realtor can still enjoy a significant amount of commissions.
- The Qualities and Skills That Both Commercial And Private Property Agent Should Possess
Whether dealing with commercial or private properties, a realtor must have specific skills and qualities to succeed in the business. Potential clients always look up a realtor before deciding to buy what they are selling. They want someone who has the necessary skills and experience to sell their property or help them find a suitable investment.
Being organized and having a keen attention to detail can single-handedly help you sell property in hard-to-sell markets. You must be able to identify the tiniest of changes that can significantly improve the property value. It also includes coming up with compelling enough property listings accompanied with quality photographs. Returning client calls promptly and getting to appointments on time are also some of the important virtues a realtor should have.
Realtors should be social enough to form connections who essentially become potential buyers. Having ties to a reputable agency does help as well as knowing other realtors working in the same area. It also pays off to know when to collaborate with other agents to sell property faster.
Aggressiveness sells in the real estate industry, but you should also have a polite attitude. Sellers want to see that you are taking a tenacious approach and working hard to find them a buyer. Realtors who treat the property as if it were their own and make use of all aggressive means possible to get it to the right clients often succeed.
It is needless to say that property agents should stay up-to-date with technology and their local market in general. Technology makes several aspects of a realtor’s work easier, and it also helps you to be more organized.
Last but not least, it helps to be honest with clients and tell them everything concerning their property even if it is not the easiest of news to hear. That means being open about the sale price and timing to close on the property.
- Should You Become A Commercial Or Private Property Agent?
Once again, it all falls back to your career prospects and where you currently are in your quest to become a realtor. Some people may want the challenging atmosphere that comes with working as a commercial agent. Others might feel more comfortable in the “less-strenuous” environment that comes with working as a private property realtor.
Naturally, this is not a decision you want to make in an instance, and you should take the time to study the market. Find out as much as you can about both the commercial and private property markets in your area. It can help you determine which route will be more lucrative. Another factor to have in mind is whether or not you intend to work as a full-time property agent.
Regardless, you cannot go wrong with the decision to join the property industry working as a realtor. There is also the option to possibly switch over to the other specialization once you start working as either a commercial or private property realtor.