Tuesday, November 27, 2007

Service Jobs - Real Estate

Real estate

Real estate did not get its own sector in the North American Industry Classification System. Instead it is a sub-sector within a bigger sector entitled Real Estate and Rental and Leasing. Rental and leasing establishments rent or lease cars, trucks, RV’s, appliances, formal ware, costume ware, videos, health equipment, commercial machinery and equipment, or just about anything you can imagine.

It is the real estate sub-sector that interests us here with 1.44 million jobs in 2012. Real estate establishments sell, buy or rent real estate as brokers but also have all other establishments that rent, lease or manage real estate for others. A small part of asset leasing has establishments that lease patents, trade marks and franchise agreements, but it has only 24.2 thousand jobs.

Real estate establishments have 3 specialty occupations: property, real estate and community association managers, real estate agents and real estate brokers. Combined they have 287 thousand jobs in 2012. All real estate establishments have office work with jobs that reflect office needs such as bookkeeper, receptionist, office clerk and secretary.

A little over 4.1 percent of the non-managerial jobs in these sub-sectors use college degree training. College degree trained jobs at real estate firms are in finance and management but the Bureau of Labor Statistics defines real estate brokers and agents as sales occupations that do not need college degree skills. All states require brokers and agents to pass a written test and have a license that requires classroom training and some years of experience.

Real estate agents and brokers do not work for salary but typically work on sales commission. This practice causes some to draw hasty and inaccurate conclusions about broker and agent income. A $500,000 suburban house is not unusual in today’s economy and a 6 percent sales commission comes to $30,000. Who hasn’t noticed one of these houses selling after a single day on the market or one Sunday open house? Who hasn’t thought $30,000 for just one day’s work? Some definitely think, “I should get into real estate?”

The first mistake is to presume a $30,000 commission is income to the broker or agent. Brokers and agents typically pay half their commissions to their real estate company for office space and other necessary services like advertising. Since the real estate company gets half of commissions it is their interest to have many commissions and therefore many brokers and agents out selling, which increases competition among individual brokers and agents and decreases their chances of earning that sales commission.

A second mistake comes from the term’s buyers market and sellers market. People forget these terms do not apply to the real estate agent. In a buyers market there are more sellers than buyers. It is easier for an agent to get a house to list but buyers can do a lot of shopping and make many low bids. With buyers doing thorough shopping the weeks and months go by preparing offers and showing houses to bargain hunters, but no commission or income for all that work and time.

In a sellers market there are more buyers than sellers. It is harder to get a house to list so enterprising brokers and agents take up showing other agents listings to some of the many anxious buyers. To share in the commission they have to prepare separate offers and be the broker or agent with the highest bid. In hot suburban markets like metropolitan Washington, DC houses can draw 8, 10 and 12 offers with many offers above the listed asking price. Only one offer is the winning bid and so only one offer shares in the commission. With a sellers market, the weeks and months go by preparing offers and traipsing through houses, but no commission or income for all that work and time.

Annual wages for 2012 reported for brokers has a large range with the 10th percentile annual wage of $25,460 and the 90th percentile annual wage at $178,230. Seldom is the 90th percentile annual wage more than 6 times the 10th percentile amount as it is here.

In real estate offices annual incomes for agents and brokers depends on the selling skills and energy of individuals. The better someone can be at selling and the more time and energy they put into showing and marketing property the higher their income. Still, the high range of incomes reported by the Bureau of Labor Statistics does indicate risk. Only a few make high incomes in real estate and we have to suspect there are long and unpredictable hours doing so. For anyone considering a career in real estate, follow this advice. Develop a back up plan.

Real estate establishments are not just the offices of real estate agents and brokers, but also firms that act as lessors of residential and non-residential property. Also real estate property managers and offices of real estate appraisers go in this sub sector. Real estate assessor and appraisers have 43 percent of their jobs in the real estate sector, a 2012 real estate total of 25.4 thousand jobs out of a national total 59.5 thousand. Local governments employ the most real estate assessors and appraisers. The realty firms doing property management often hire many in building and grounds maintenance. Add the janitors, maids, and landscaping and grounds maintenance workers and it is more jobs than realtors and brokers.

Somewhat unnoticed in activities related to real estate is the rise of the mini warehouse and self-storage units, along with employment as lessors of mini warehouse and self-storage units. Employment growth as lessors in this sub sector increased at an annual rate of 5.24 percent from 1990 to 2012, a rate 4 times the employment growth for all of the real estate industry.

The general rule of storage unit leasing is to make sure those must-save-things are worth more than the monthly locker rental; an amount apparently in the $50 to $100 range depending on size and location. Check values of used furniture, clothes and kitchenware at the Salvation Army. Prices there are very attractive and it might be possible to fill a unit with less than $100.00 worth of used stuff. If you must go ahead, remember that employment is a requirement in America and you are helping to support wages and income for lessors of mini warehouse and self-storage units, an industry with 44.6 thousand jobs.

With a 115.3 million service jobs to divvy up, real estate services gives us 1.43 million jobs, but that is only 1.1 percent of establishment employment. Real estate services employment has been growing at 1.12 percent a year, which is faster than the rate for non-farm employment. We still have 59.7 million service jobs left to fill. They are still more sectors, but the share of professional jobs in the remaining sectors keeps going down.

19 comments:

Anonymous said...

There is definately a lot to find out about this issue. I like
all the points you have made.
Check out my homepage agencies advertising

Anonymous said...

Hello! This is my first visit to your blog!
We are a group of volunteers and starting a new initiative
in a community in the same niche. Your blog provided
us useful information to work on. You have done a extraordinary job!



my site: search businesses in Florida
my web page: Florida small business listings

Anonymous said...

You can certainly see your enthusiasm in the article you write.
The sector hopes for more passionate writers like you who aren't afraid to mention how they believe. Always go after your heart.

My web-site; http://www.eileenfleming.org/index.php?option=com_blog&view=comments&pid=1316&Itemid=0

Anonymous said...

Saved as a favorite, I really like your site!


My blog: relic watches

Anonymous said...

Its like you read my mind! You appear to know a lot
about this, like you wrote the book in it or something.
I think that you could do with some pics to drive
the message home a little bit, but other than that, this is
wonderful blog. A fantastic read. I will certainly be back.


Feel free to visit my web page - akribos

Anonymous said...

Every weekend i used to go to see this site, for the reason that i wish
for enjoyment, since this this web site conations genuinely good funny data too.


Also visit my webpage: Wrist watches

Anonymous said...

Hi! I just wanted to ask if you ever have
any issues with hackers? My last blog (wordpress) was hacked and I ended up losing many
months of hard work due to no back up. Do you have any methods to prevent hackers?


My web-site - victorinox

Anonymous said...

I've been browsing on-line greater than three hours nowadays, but I by no means found any fascinating article like yours. It is pretty value enough for me. In my opinion, if all web owners and bloggers made just right content as you probably did, the internet will likely be much more helpful than ever before.

Feel free to surf to my homepage www.skenz.it

Anonymous said...

We are a group of volunteers and starting a new scheme in our community.
Your website provided us with valuable info
to work on. You have done a formidable job and our entire
community will be grateful to you.

Feel free to surf to my blog; women's vestal watches

Anonymous said...

Great post.

Feel free to visit my homepage ... victorinox swiss army watches for menvictorinox for women

Anonymous said...

Hi there to all, how is the whole thing, I think every one is getting
more from this web page, and your views are fastidious in favor of new viewers.


Also visit my blog; Rc Hobbies

Anonymous said...

Hi there, I enjoy reading through your article post.
I like to write a little comment to support you.


my homepage; http://rhubarbwiki.talkunafraid.co.uk/

Anonymous said...

It's remarkable to go to see this web page and reading the views of all friends on the topic of this paragraph, while I am also zealous of getting experience.

Feel free to surf to my web-site: Relic Watch for Men

Anonymous said...

Hello there, You've done an incredible job. I'll definitely digg it and personally suggest
to my friends. I'm confident they'll be benefited from this site.


Here is my webpage: learn.equalit.ie

Anonymous said...

If you are going for finest contents like me, only visit this web site daily since
it gives feature contents, thanks

Feel free to visit my page: whitehat seo

Anonymous said...

This text is invaluable. Where can I find out more?



my weblog :: dev.gaychatz.net

Anonymous said...

I think this is among the most significant information for me.
And i am satisfied reading your article. However want to remark on few basic things,
The website style is ideal, the articles is actually excellent
: D. Just right task, cheers

My blog post; seo forum

Anonymous said...

Hi there! I just wanted to ask if you ever have any trouble with hackers?
My last blog (wordpress) was hacked and I ended up losing many months of hard work
due to no back up. Do you have any methods to protect against hackers?


Here is my web blog: icloud activation bypass v3.2.4

Anonymous said...

Appreciate the recommendation. Let me try it
out.

Also visit my blog: angry birds epic hack