Real Estate Career Specialization

The types of careers that are open to holders of real estate degrees are generally lucrative, challenging, and satisfying. There are jobs in finance, sales, law, and insurance. Many jobs require specialized knowledge, so the time to decide on a career track is before applying to real estate degree programs. Much of the work is business-oriented, requiring math skills and a certain temperament. Others require good people skills and charisma. Some depend on organization, while others necessitate aesthetic taste. It is important to find a career that relies on your best qualities and skills.

Brokers and salespeople work in residential sales offices, commercial or residential brokerages, or for themselves. They facilitate buyers and sellers transferring properties and negotiating the best prices. Appraisers specialize in finding the true value of a property in a certain locale and at a certain time. Property managers take care of the daily running of investment properties by collecting rents, maintaining buildings, and tracking market values for the owners of the buildings. These are the frontline workers of the real estate industry.

Financial jobs in real estate are numerous and various. Working in mortgage finance means helping property buyers secure loan funding. Escrow officers handle the administration of pending deals and hold finances in escrow to ensure a deal closes. Commercial bankers manage groups of loans and try to maximize returns for shareholders.

Real estate lawyers ensure that large property transactions are processed legally. They also regulate the industry by litigating. Insurers underwrite the entire real estate industry by protecting the investments of property holders and lenders.

Real Estate Broker

Real estate brokers are on the frontline of the real estate industry. They are the primary handlers of real estate transactions. They must be licensed by the state and require special training. Brokers often have real estate degrees to help them achieve this training and licensure. There is a lot of responsibility involved with being a broker. The broker is responsible for their agents' actions, and also has to take care of all the obligations that come with owning any business, such as paying taxes, complying with regulations, dealing with workers compensation insurance, etc.

Brokers work for themselves or for a brokerage. Their main responsibility is to act as an intermediary in a real estate transaction. They can represent the seller. In this case, they advise on things such as asking price, staging, and hiring appraisers or contractors. They run open houses to show the property to prospective buyers. They contact buyers’ agents to arrange showings and negotiate for sellers. They also take sellers through all of the necessary paperwork and stages of the sale process. When they represent buyers, brokers show available properties that fit the client’s desires. They advise buyers on making offers, asking for amenities, and making counteroffers. They also negotiate with sellers’ agents to come to a final agreement.

Another major part of a broker’s job is drumming up new business. Many brokers run classes in home buying for first-time buyers. They show such buyers how to check their credit score, get pre-approved for a loan, and find appealing properties. They do this in the hopes that the students will become clients. They must also keep their eyes on the local market and attend broker open houses to see new properties when they hit the market.

Real Estate Appraiser

One of the specialty titles that requires particular training is that of appraisers. Appraisers make a valuation of properties of all kinds, based on the value of other properties, damage to the property, and special features of the property. This valuation is an official number that can be used by all stakeholders when discussing the worth of a building, a tract of land, or a development.

Appraisers must be knowledgeable about the local market they work in. They must be familiar with what similar properties in the area sold for recently. They must also be aware of geologic and climatic conditions that affect the longevity of buildings and structures. They usually specialize in appraisal while taking their degree, because appraisal requires both academic and practical knowledge.

Appraisers often specialize in a certain type of property. Residential property appraisers usually work on a client-by-client basis, appraising homes that house one to four families. Some appraisers work in general practice and will appraise any type of property, including residential buildings, commercial buildings, and land parcels for development or agriculture.

Appraisers must be licensed by the state. Licensing can be a long process. Most states require work experience so that appraisers become familiar with local conditions and regulations. Prospective appraisers must also pass a standard examination. Real estate degree programs can help on both counts, as many work requirements can be lessened by coursework and programs can help candidates prepare for the exam.

Escrow

Escrow is a financial instrument used in real estate transactions. It is an account controlled by a third party for holding a deposit until a property sale has closed. This period when a property is in escrow allows time for the title to be cleared of any liens or outstanding debts. For holders of degrees in real estate, escrow can become a lucrative career path.

Escrow officers and specialists assist real estate buyers, sellers, brokers, and loan officers to complete property transactions. Escrow officers oversee the transfer of the title and the down payment during the time when the property is in escrow. They must prepare escrow agreements and make sure that all parties follow all regulations. They file deeds with the housing office and maintain records of transactions. They can even help buyers secure financing for all or part of their loan.

Another important function of the escrow officer is training subordinates. Although a real estate degree is useful to an escrow officer in acquiring a position, work experience and on-the-job training are invaluable. There are a variety of escrow products available to clients and the escrow officer is the only one with the expertise to see the process through to fruition.

Mortgage Finance

Real estate is often the principal investment of a person’s life. For most people, buying a home with cash is not a realistic option. They must first secure a mortgage, a home loan of between five and forty years with fixed or adjustable payments. Careers in mortgage finance run the gamut from mortgage underwriters to mortgage bankers.

Securing a home loan can be a long and frustrating process. Mortgage finance professionals smooth over the bumps in the bureaucratic road and assist families and businesses in finding financing for their property deals. Mortgage underwriters determine the financial suitability of a particular real estate deal and decide whether a buyer should be granted a loan. They research the employment, accounts, and credit history of the buyer, as well as the true value of the property being bought.

A mortgage loan originator, also known as a loan officer, is an expert in loan products. Mortgage loan originators help brokers, sellers, and buyers find loans that fit their needs, whether the loans are fixed-rate, adjustable-rate, or group loans. The expertise required for this job means that states regulate the industry. Loan originators need to be licensed and pass a licensure exam before practicing their profession. This career can be highly remunerative, as loan originators earn a commission for loans successfully closed.

Residential Practices

Many real estate professionals specialize in residential buildings. Residential real estate is the biggest piece of the real estate pie. People buy residential buildings as primary homes, for vacation rentals, as investments to renovate and sell, or for the rental income that investment property produces. Residential practices specialize in their local markets and serve as both buyers’ agents and sellers’ agents in transactions.

Residential practices hire salespeople and brokers. They access listings for clients and negotiate with other agents for their clients. They organize open houses as sellers’ agents and contract out staging and appraising duties to other professionals. They also hold classes for first-time homebuyers, taking them through such processes as finding their credit scores, getting pre-approved for a loan, and selecting and buying a property.

Brokers and salespeople working for a residential practice must be licensed in their state. They must keep abreast of sales in their neighborhoods and be able to use online listing services. They go out on brokers’ tours of available homes so that they know what is appropriate for their clients. They also know what procedures need to be followed to close on a home, preparing paperwork for clients and providing them with trustworthy appraisers and finance people to complete all necessary tasks. Finally, they are client advocates, advising a client when a home has flaws or a price is unreasonable.

Real Estate Law

Real estate law is an exciting field and can make for a promising career. Professionals in real estate law perform a variety of tasks, ensuring that transactions are above board and stepping in when they are not. Real estate lawyers require specialized education outside of a real estate degree, as do the aides and administrative staff who assist them.

Like other lawyers, real estate lawyers graduate from law school with a J.D. (Juris Doctor) degree. The practice of law is regulated by the states, so lawyers must pass a bar exam as well. Once they are qualified to practice real estate law, they serve several functions. Large real estate transactions can have tricky structures and parties hire lawyers to set up trusts and deeds to meet regulations. Lawyers often enter the real property picture following death or in the event of foreclosure.

Lawyers also litigate. When transactions go sour or parties disagree about the value of property or seek legal separation of properties, as in the case of divorce, lawyers step in to represent the parties. Lawyers are retained by both parties during foreclosure proceedings. They can also be used to fight improper foreclosure, and in this market they are in demand from individuals and legal aid foundations.

Government lawyers investigate and prosecute real estate fraud. Private real estate lawyers who protect their clients from predatory schemes by lenders and brokers also police real estate fraud. Lenders can be too quick to foreclose or lend money in order to foreclose in so-called “loan to own” schemes. Real estate fraud is at an all-time high, and lawyers are more in demand than ever.

Brokerage

After graduating from school with a degree in real estate, many people work for real estate brokerages. Here they can train under experienced brokers and salespeople in the transfer of real property from sellers to buyers. There are quite a few advantages to working for a brokerage.

Brokers act as go-betweens for sellers with real property and buyers looking for residential or commercial real estate. Salespeople work only on the selling side of the ledger. Both must be licensed by the state. Brokers help sellers present their properties in the best light; advise clients on optimal pricing for their properties; and help sellers process all of the paperwork involved in transferring properties. Brokers help buyers view many properties that fit their budgets and tastes; help them negotiate a fair price; and guide them through the paperwork involved in closing on a property. For these services, the broker takes a commission from the final sale price of the property.

Working at a brokerage is a boon to a young real estate professional. Work experience is a prerequisite for licensure in many states. In addition, more experienced brokers can teach young workers about local markets and local regulations. Such work experience also gives potential brokers a client base from which to work. They can use the reputation of the firm to bolster their own trustworthiness in the community. When it comes time to take the licensing exam, it cannot hurt to have mentors who have successfully taken it before. Finally, the brokerage pays for its own administration and facility costs, giving the individual broker a base from which to build her career.

Real Property Management

Real property management is a lucrative growth area of the real estate industry. It requires a broad perspective on markets that can be improved through the acquisition of a real estate degree. Property managers maintain properties for property owners and are often responsible for improving the value of the properties themselves.

Property managers are responsible for residential properties.

• This can include apartment buildings, rental homes, and vacation rentals.
• They also oversee commercial properties such as storefronts and warehouses.
• Finally, they take care of tracts of undeveloped land and buildings held in trust.
  

Real property managers see to the daily maintenance of the properties in their charge. This can mean collecting rents from tenants and responding to their complaints and needs. It means repairing and improving occupied and unoccupied buildings. It also means actively seeking tenants and ensuring that buildings are getting market rental rates for their owners.

Property managers must have an eye for detail and solid organizational skills. They might manage multiple properties and need to keep track of all the financial obligations attached to each one, including property taxes and monthly bills such as water and sanitation fees. They also serve an advisory role for owners acquiring new properties. They must keep abreast of changes in local markets to identify accurately desirable properties for their company and clients.

Real Estate Insurance

Real estate insurance is an important factor in buying a home or other property. In fact, most states have mandatory insurance rules requiring property owners to carry a minimum amount of

mortgage insurance. Insurers are needed in both bull and bear markets. Real estate insurance companies hire college graduates and favor those with the knowledge that a real estate degree confers.

Many job descriptions for real estate insurance companies are regulated by the state. Agents in many localities need a P & C (Property and Casualty) license. This qualifies them to sell both property and auto insurance in most cases. Insurance rates, just like a term life insurance quote, are based on several factors. These can include local weather history, property appraisals, construction costs in the area, and other factors related to the location. Licensing ensures that agents are aware of rules and regulations in the state and region where they work. This allows agents to help homeowners buy sufficient and appropriate insurance for their property.

Claims examiners act in many ways as appraisers. They must have expertise in construction, building codes, and property insurance. They inspect properties after a claim has been made to see whether the property qualifies for the insurance benefit laid out in the owner’s policy. Insurance companies are large institutions with substantial corporate hierarchies employing administrators, managers, accountants, and other professionals. Real estate degree holders can find a bevy of opportunities in such firms.

Commercial Banks

Commercial banks are the cornerstone of the mortgage industry. They provide typical banking services such as savings and checking accounts to businesses and individuals. They also provide loans using the deposits of other clients. Home and commercial property loans are an increasingly large part of their business model. Holders of real estate degrees can become involved with commercial banks in several ways.

Real estate degree holders act as loan originators at commercial banks. They determine whether a loan applicant is worthy of a loan and decide which loan products are suitable. They also serve as loan officers and bankers. In this capacity, they seek out new clients and work with brokers to build relationships that benefit the bank. They give classes on home buying and loan pre-approval to first-time buyers. Bankers manage portfolios of loans and use credit default swaps to insure the bank’s exposure to loan defaults.

There are also opportunities for foreclosure specialists. When a loan holder is unable to make monthly payments, foreclosure specialists step in to take control of the property for the bank. They file the appropriate paperwork and notify the person in default. They take appropriate measures to ensure eviction and then decide what to do to the property to compensate the bank. They could do this through a regular sale or a short sale, where the bank agrees to take a haircut in order to rid itself of a moribund property.

Real Estate Investment Companies

Over the last decade, real estate markets have gone on a roller coaster ride. Real estate is still a major part of the economy and represents the single biggest investment for most families. Real estate investing is still a highly lucrative industry. Real estate investment companies scour top real estate degree programs looking for ambitious people to join their firms.

Investment companies hire real estate professionals as project managers. These managers identify new properties. They also see a new development through to completion, from breaking ground to finding tenants. Asset managers focus on buying and selling properties. While others identify properties and think in terms of the big picture, asset managers are on the ground making deals and negotiating prices.

Because real estate investment companies buy and hold many properties, they hire financial analysts to predict trends and analyze the viability of new developments. They research the current portfolio of properties to monitor if any need to be sold or are underperforming in terms of market rates. They also need property managers to maintain the properties they hold. These professionals deal with the day-to-day running of an investment company’s real property. Finally, they hire finance professionals to secure their investments through hedges and other financial instruments against unpredictable market forces.

Life Insurance Firms

Life insurance and real estate are inextricably linked in the financial world. Life insurance companies have grown remarkably since the middle of the 19th century. Two world wars also added to their bottom lines as people looked to protect their families against catastrophe. With a large capital base, life insurance firms began to look for lucrative ways to invest their capital. Nowadays, almost all life insurance firms have a real estate arm that offers loan products to property buyers. Graduates leaving school with a real estate degree would be wise to check out life insurance firms when they begin their employment searches.

Life insurance firms hire real estate school graduates to work in their real estate divisions. They can serve as loan originators. In this capacity, they work with loan applicants, checking their credit records, financial information, and employment histories. If an applicant checks out, the loan agent will suggest loan products that match the applicant’s needs.

Ever since the residential real estate market plunged a couple of years ago, life insurance firms have been moving toward commercial real estate. They still want to make loans, but they are likely to hire people with experience and knowledge of commercial property. Real estate students might want to take some courses in commercial real estate to take advantage of this emerging employment market.

Mortgage Companies

A mortgage is a loan product that is tied to a form of collateral, specifically a piece of real property. It is different than a typical loan because it is really a contract to make a set number of payments for a specified time. Most people could not afford to buy real estate without using a mortgage. The agreement gives the lender the right to evict borrowers and foreclose on the home if payments are not made on the agreed upon schedule. Mortgage companies originate loans, maintain accounts, and deal with foreclosure if the eventuality arises. They hire graduates with real estate degrees to perform all of these functions.

Loan officers originate loans. They verify a buyer’s credentials and financial history to ensure they have the means to make mortgage payments. They help them choose an appropriate loan product. They also manage current loans by working out pre-payments and refinancing, essentially exchanging one mortgage for another. Foreclosure specialists make sure that borrower evictions are based on up to date paperwork and regulations. Mortgage companies can be quite large with extensive administrative hierarchies. They can specialize in residential or commercial properties or have divisions that deal with both.

Title Insurance

Savings and Loan Associations

Savings and loan associations have a long history synonymous with real estate developments in the United States. Since the Federal Home Loan Bank Act was passed during the Great Depression, these institutions have been using the savings of depositors to make amortizing home loans to property buyers. This has allowed people to buy a home beyond their immediate means and pay it completely off in a matter of five to forty years. Savings and loans hire real estate professionals holding real estate degrees to help them determine who qualifies for loans and what loan products are appropriate for them.

Real estate professionals working for savings and loan associations often serve as loan underwriters and officers. They evaluate loan applications and research applicants’ employment history, bank account information, and other factors that qualify them, or disqualify them, for loan approval. They describe products to buyers and help them make a decision that matches their economic situation.

Savings and loan associations function like larger banks and have jobs in a variety of financial sectors. Collection specialists help clients refinance their loans or work out payment plans for those in danger of foreclosure. There are also foreclosure specialists, who specialize in taking legal control of properties and even arrange short sales of delinquent property. Regardless, specialized knowledge of real estate is a prerequisite for a career with these institutions.

Government Agencies

Real estate degree holders will find a ripe job market in the public sector. Government agencies hire real estate professionals for local, state, and federal offices. The jobs they perform include appraising and managing real property, performing regulatory functions, and doing administrative work.

Many real estate professionals work in urban policy, zoning, and land use. These skilled workers help determine the shape of cities and rural areas by designating areas for residential and commercial properties, establishing and maintaining infrastructure, and predicting growth and contraction. They work for the Department of Public Works or other metropolitan entity. Rent boards establish and regulate rules for transactions between landlords and tenants.

Some real estate professionals work in acquiring and maintaining properties for the government. Land for schools, hospitals, and government offices is purchased and developed by government workers with real estate training. Many local and county governments have a real estate division just for this purpose.

One of the most important functions of the government is regulatory, maintaining a fair playing field in the real estate industry and protecting consumers from fraud. Real estate fraud investigators and litigators prosecute discriminatory brokers and lenders. Other agencies impose fines and sanctions against unscrupulous developers and builders. Every government office includes administrators who document and file all manner of official transactions.

Real Estate Associations

Real estate professionals tend to be very focused and ambitious people. Many real estate jobs are paid on commission; this means that success depends largely on personal effort and motivation. Many combine their efforts in one area, however, to advance the industry and improve their own situations within the industry. Real estate associations are professional organizations that focus member influence on changing regulations and moving the industry forward into the future.

One of the primary functions of real estate associations is government advocacy.

Real estate is a highly regulated industry. Professionals of all stripes are licensed. There is a tremendous amount of paperwork and oversight associated with each real estate transaction. Properties are appraised and buyers sign hundreds of disclosure forms. Real estate associations advocate for their members, asking for more efficient and less onerous regulations. They lobby for rules that favor property owners and seek to spur development.

Membership in a given real estate association has other benefits for its members. Members are often required to be licensed professionals and, of course, they must pay dues for the privilege of membership. Many associations support member education through training programs and scholarship funds. Some offer certificate programs themselves so members can qualify for more advanced positions within their companies. There is also a wealth of information in the form of publications and online tools that associations make available to their members. Finally, associations and the events they support are great forums for networking. Many boast over 10,000 members. They hold conferences and events that bring members together. Because they are professional associations, it is not taboo to discuss business at such an event. In fact, it is expected and welcomed.

Finally, real estate associations spend member dues in a variety of ways that help the industry in general. One of their main functions is performing research. Associations pay professors and private institutes to study certain markets and suggest improvements that might improve conditions for increased development. They might study how improved infrastructure in the form of light rail effects property values near stations. This information can be used to lobby for government funding or new legislation. Associations are information resources that members can tap when they apply for zoning dispensations or regulation waivers. They also provide members listings of properties for sale, statistics about the industry, and more local information.