Several professions in the real estate industry are very lucrative. Read what each profession does, what money can be made, and how to become that real estate professional. These real estate professions include: real estate broker, real estate appraiser, real estate inspector, and a real estate flipper.
Introduction
Over the last several years, the real estate industry in almost every major city market has experienced a boom. Property values are increasing and people are selling and buying homes at an amazing rate. While fortunes can be made quickly in the real estate industry, most people only think about entering the industry as a real estate broker. While becoming a real estate broker is a very lucrative real estate position, there are other positions in the real estate industry that are capable of generating a healthy return for you. If you are considering chasing after a portion of the multi-billion dollar real estate industry pie then you might want to consider these positions: real estate broker, real estate appraiser, real estate inspector, or a real estate flipper.
Real Estate Broker
The most visible real estate position that most people are familiar with is the real estate broker. This person can represent sellers exclusively, they can represent buyers exclusively, or they can represent both buyers and sellers. The difference is what portion of the commission from a sell of a house that the broker will get. If they are the listing agent then they get half of the commission regardless of whether they are the ones that sell the property or not. Conversely if they are the agent that sells the house, and are not the listing agent, then they receive only half of the commission with the remaining half going to the listing agent. If the agent works as both the listing and selling agent and a property sells, then they get all of the commission.
On average the total commission is 5% of the sale price. In areas where the housing costs are between $500,000 and $1,000,000 for a midlevel home, such as in Los Angeles, this commission will range between $25,000 and $50,000 per home sold. With the frequency of homes that are put up for sale weekly this can lead to an enormous income potential. Even in areas where homes only sell for about $150,000 to $200,000 for a midlevel home the commissions will still range from $7,500 to $10,000 per sale if the agent acts as both the listing and selling agent. If the agent only sells one house a month, this can still result in an annual income of between $90,000 and $120,000.