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All real estate agents whether they specialize in residential or commercial real estate are required to be licensed. The purpose of the license is to ensure professional competency among licensees and to promote a fair and honest market environment for practitioners and their customers and clients in real estate transactions. Every state has a real estate commission that oversees the licensing process in the state. Although each state's requirements differ, many include the following guidelines: Must be at least 18 years old to obtain a real estate salesperson license and at least 21 years old to obtain either a broker's license or an associate broker's license. Must be a high school graduate or have a GED. Must complete a certain amount of hours of approved pre-licensure real estate courses. Must pass the state real estate exam.
Most new real estate agents will begin their career by focusing on the residential market. New residential agents can get off to a quick start by working with friends and relatives as they attempt to sell or buy a property. Agents who specialize in commercial markets will not be able to rely on this quick source of potential deals because it is highly unlikely that your best friend is buying or leasing office space or large apartment buildings. Commercial real estate deals are not only bigger deals that carry a higher price tag, but they require more expertise and specialized training and knowledge. The typical commercial client does not get emotionally attached to a property. Instead the client is typically a business-owner who will select a property based on a critical analysis of the numbers after doing extensive due diligence. The timeframe it takes to purchase a residential property can be anywhere from a day to a few months. Residential buyers may look at a potential choice only once or twice before signing a contract to purchase. Commercial transactions can easily last several months before an offer is ever submitted on a property. The due diligence period that follows can sometimes extend to half a year or longer. Commercial real estate is usually a niche market for real estate agents. Commercial agents have to have more detailed knowledge of commercial properties, the ability to perform in-depth financial analyses, and the desire to sometimes work up to a year on a deal before receiving a commission. Commercial real estate is a specialty. The steps to a career in commercial real estate require learning the basics of real estate first and then learning the specific trade of selling commercial properties. It is different than residential selling, but builds on your skills as a residential real estate agent. If commercial real estate is for you and you put forth the work and patience, the rewards can be great.
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