Before you begin your career as a broker, you must pick a side-
Commercial or Residential
Doing this will help you find a brokerage that can help guide you as well as narrowing down your specific clientele. The difference between the two is that residential deals mainly in single family and multi-family homes whereas commercial deals more so with large parcels of real estate, such as shopping centers, high rise buildings, warehouses and even sometimes larger multi-family units.. Commercial real estate is a more direct and straightforward approach: What’s the cap rate? How much profit will be made? How many units can be constructed? And in residential, you’re selling an emotion, a future: Could you build a family here? How are the neighborhoods? What is the school district?
There is more math involved in the commercial side of real estate, but you are more connected with your clients in residential. Your hours of work are also vastly different. In commercial, you can expect more consistent hours Monday through Friday, something like a 9 to 5. In residential, however, you must be more flexible with your time and be prepared to make yourself available at moments notice.
Typically, commercial real estate brokers tend to make a higher commission in a single transaction, but residential brokers usually have a faster turnover rate in sales. And no matter the economic situation, residential brokers will always have a market. At the end of the day, your lifestyle and what you’re looking for in this career that will make major impact on how you proceed. Both routes are great choices and offer endless opportunities to be successful. Our broker courses get you prepared for either career choice you make!