New Mexico Frequently Asked Questions

New Mexico Real Estate Frequently Asked Questions - "Becoming a Real Estate Professional"

1) Why is it wise to now choose a career in real estate?
2) What is the difference between a salesperson and a broker?
3) What does a real estate appraiser do?
4) How do I find employment in real estate?
5) What are my startup expenses?
6) What can I expect in terms of income? Is this salary or commission based?

1) Why is it wise to now choose a career in real estate?

1. When the market slows down, it creates an even stronger opportunity to succeed in real estate. In a strong market, the real estate field becomes flooded with agents, making it fairly competitive. A slower market gives you the opportunity to train properly and learn to market yourself. These are important factors that are often overlooked, which can determine the long-term success of a real estate professional.
   
   
2. Any professional agent can tell you that the history of real estate shows peaks and valleys in various cycles, just as in most careers. The real estate market does always bounce back. Get your license now so you are ready and have built your business to take full advantage of the next boom in this industry.
   
   
3. Be proactive! Now is a great time to take advantage of smaller class sizes and more personalized instruction. Brokers will have more time to properly train new agents in a down market. Get a great start into a new career by being one big step ahead of everyone else.
   
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2) What is the difference between a salesperson and a broker?

A real estate salesperson is a professional licensed by the state to help with buying or selling a home. The job of a real estate salesperson is to bring buyers and sellers together and help them reach an agreement.

A real estate broker is a professional who helps sellers sell property. In other words, a real estate broker is an intermediary between buyers and sellers. A broker usually has salespersons, known as real estate agents, to assist them in the selling process.

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3) What does a real estate appraiser do?

An appraiser gives an opinion of the quality, value, or utility of a specific property. An appraisal is usually required whenever real estate is sold, mortgaged, taxed, insured, or developed. A typical appraisal might include physically inspecting the property, measuring the improvements and collecting the associated costs, preparing a site drawing, writing the physical description of the property, researching official records and deeds, finding similar properties to compare, and writing a final appraisal report.

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4) How do I find employment in real estate?

1. Make a list of agencies you want to talk with. If you don't know where to start, browse real estate ads to see if some firms seem more interesting than others.
   
   
2. Visit your local Chamber of Commerce to find out which firms are best represented. Pay attention to television and radio advertising, billboards, and the “For Sale” signs you see in yards.
   
   
3. Make appointments with the broker-in-charge of each real estate agency on your list. Larger firms may have recruiting managers.
   
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5) What are my startup expenses?

1. Ask the broker for an itemized list of startup expenses. Are you required to join local, regional, and national professional organizations? Are there recurring monthly or quarterly expenses for membership?
   
   
2. Find out if advertising expenses are paid by the agency. How about “For Sale”signs and other signs? Do they provide them to agents free of charge?
   
   
3. Who pays for long distance telephone calls to clients? How about photocopies, stamps, and other office-related expenses?
   
   
4. Does the firm provide in-office computers and printers for real estate agent use, or are you expected to bring your own?
   
   
5. Ask if the firm carries errors and omissions insurance for agents. If so, find out what's covered. Discuss the policy with an insurance carrier to make sure it's adequate.
   
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6) What can I expect in terms of income? Is this salary or commission based?

According to Salary.com, most real estate agents earn on average between $34,000 and $45,000 annually. How much agents make depends on the number of transactions they complete, the commission paid to the brokerage, and their split with the sponsoring broker. If you are talking with a franchised agency, be sure to ask what percentage of each sales commission is deducted and sent to the franchising company. Top producers earn a lot more than the average real estate agent. Each real estate office sets its own standards for top producers, but it's probably safe to say that a top producer would need to sell at least one home a month to qualify. Mega-stars earn $200,000 and up per year. Very few real estate professionals earn a salary versus commission.

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