Can you sell commercial real estate with a residential license? Yes, a licensed real estate agent can sell any commercial and residential property. Again, the main distinction is the type of property they specialize in.
So, residential real estate agents are in the business of selling residential real estate. In contrast, a commercial real estate agent is trained to work with residential and commercial properties.
The majority of people associate becoming a real estate agent with selling single-family houses.
However, it is only one of the various sorts of properties in which real estate brokers are knowledgeable. If you’re thinking about a career in real estate, you should know the differences between commercial and residential properties.
However, this explanation is no more than a scratch on the surface of what real estate agents perform daily. Furthermore, it does not clarify the distinction between residential and commercial real estate and how their respective responsibilities differ.
Can you Sell Commercial Real Estate with a Residential License?
Yes, real estate agents can sell any commercial property or residential property. However, a great deal of on-the-job experience helps an agent market commercial properties more effectively than residential. Because of this, many clients choose to work with an agent skilled in one or the other.
The underlying question is: What expertise is required to handle a given type of transaction?
While your pre-licensing course covered the fundamentals, there may be other details you need to master to sell a business or residential property most efficiently. So, that’s why we encourage you to get hands-on experience and work with a mentor who can help you through the process of specializing in one or the other.
Real Estate Agent Responsibilities
A regular day in the life of a real estate agent entails much more than handling sales and aiding customers with house purchases.
These options are only a part of the many duties that come with being a real estate agent:
- Topical listings (current, prospective, or sold) may be found on the internet or in directories like Activity Reports.
- Keep up with the latest industry news, patterns, and regulations.
- Fill out paperwork and submit contracts to the appropriate state agencies.
- Consultations with your brokers or clients should be scheduled in advance.
- Create a marketing plan to bring in more customers.
- Customer calls and e-mails must be reverted.
- Organize product presentations and open homes.
- Create leads for your agency.
- Photoshoot properties for use in brochures and marketing materials.
- Staging your home for showings is a great way to get it ready.
- Make connections with other realtors.
- Analyzing the market to come up with a fair selling price.
- The license must be renewed on a regular basis.
- Register in a continuing education program.
What services do real estate agents provide?
Real estate agents provide services ranging from pre-sale to post-closing follow-up. Although each agent and each agency is unique, the following are the essential services a real estate agent can provide:
Services Provided Prior to Listing
- Arrange a meeting with your customer.
- Compiling a list of presently available assets and comparing their prices.
- Create an “Equivalent Analysis Of the market” to ascertain your property’s market price.
- Conducting research on the property, including deed sort, area and proportions, land use coding restrictions, existing use, zoning, and other factors.
- Create a quote collection.
- Provide a summary of market forecasts and current circumstances to your customer.
The Listing’s Promotion
- Get the property/building ready for showings.
- Arrange for visits.
- Compile a list of mortgage loan information.
- Talk about other options for funding.
- Make the offer public.
- Set up viewings with potential buyers.
- Produce and distribute adverts (print and online).
- Create an e-mail list of potential purchasers.
- Notifications of “New Listings” are provided via mail and e-mail.
- Submit real estate adverts to regional, national, and worldwide websites.
- Keep in touch with the seller about marketing reports, pricing adjustments, and other issues.
- Go through all “offer to buy” contracts with a fine-tooth comb.
- Talk to your consumer about the offerings.
- Contact the buyer’s agent to discuss the offer.
- Drafting a contract and sending it to the buyer in triplicate.
- Arrange for the deposit to be kept in an escrow for the purchaser.
- Remove the listing from the market and substitute it with “Sale Pending.”
- Request inspections for mold, termites, and septic systems.
- Verify that the contract has been signed by all parties.
- Forms and files must be current.
- Collaborate with the vendor, buyer, and buyer’s agent to supervise the closing process.
- Schedule a final walk-through with your team.
- Payments security.
- Make sure there are no inaccuracies in the documentation.
- Assign the status “sold.”
- Dispel any doubts or fears your customer may have.
- Answer follow-up calls and resolves outstanding issues.
- Reward yourself for a job well done.
What is the distinction between commercial and residential properties?
Commercial and residential real estate are the two main types. And the distinction between the two is simply the type of property on which an agent focuses their efforts.
Both types of agents must have the same fundamental training and qualifications. However, once they choose a specialty, they receive additional training to deal with commercial or residential real estate property.
Commercial and residential real estate agents are different.
There are significant distinctions between a job in commercial real estate and a job in residential real estate. Among them are the following:
In terms of yearly salary, commercial real estate agents often make far more than residential real estate brokers. The commissions are generally greater, and the more unpredictable residential property market.
Hours: Typically, commercial agents work a 9-to-5 or 40-hour workweek.
Outside of normal business hours, residential brokers often work substantially longer hours.
Commercial and residential brokers may get significantly different on-the-job training. Commercial agents work for commercial brokerage businesses and have more specialized training. Residential properties outnumber commercial ones by a large margin. As a result, commercial real estate deals are much fewer.
The transaction’s duration
A typical residential real estate deal is simple. A normal transaction takes 30-45 days to complete. As a result, business transactions might take up to a year to complete, although they are seldom completed in under 60 days.
Since commercial real estate usually sells for a higher price than an average home, commissions on retail sales are significantly higher.
How to Market Commercial Real Estate
If you already have a permit, you may jump-start your career by following the procedures listed below:
- Look for a real estate firm or submit an application to work as a real estate agent.
- Conduct market analysis. You want to be an expert in your field.
- Develop a marketing plan that will assist you in generating new real estate leads, increasing your exposure, and establishing yourself as a respected expert in your community.
- Find a mentor. Find somebody with broader experience than you to assist you. Improve your skills and correctly market yourself.
- Form alliances with other real estate experts. Promote the sale of your home.
- Undertake market research to determine a fair selling price. Arrange visits, track up with possible customers, make ads, publish material on your website, and raise your properties’ exposure.
- Keep your education going. Register in continuing education classes to improve your abilities over time, gain more licenses, and earn more money.
Frequently Asked Questions
What is a commercial real estate license?
A commercial real estate license is a professional designation carried by an agent specializing in commercial real estate.
Where do you start your career as a residential real estate agent?
To start your real estate career in the residential sector, you can choose from fundamental steps.
- Get a job with a brokerage firm.
- Analyze the market.
- Establish relationships with your colleagues.
- Promote your business and properties.
Do I need to have a commercial real estate license?
Yes, the licensing requirements are the same whether you choose to work as a commercial or residential agent. Both must take the same real estate courses and exams.
Why do you need a real estate license?
This is what it means to legally practice real estate, for which a license is required. Licensed real estate agents perform the following types of transactions or activities:
They represent a real estate agency by selling or renting real estate to tenants and buyers.
- Prepare listings of available properties.
- Enter into real estate contracts.
- Create new business opportunities.
- They are staging and presenting properties.
- Assist buyers during the purchase process, among others.
What makes more money in commercial or residential real estate?
In terms of profit, commercial properties usually offer a higher profit margin than residential properties. While it is easier to sell a residential home than commercial property, commercial agents earn a higher commission on the properties they sell.
You’re going to embark on a real estate career. The question is whether you go commercial or residential. While making this decision may seem complicated, you have plenty of time to make it.
Whether commercial or residential, any property can be sold by a real estate agent. An agent’s on-the-job experience contributes significantly to promoting commercial properties more effectively. Many clients choose to work with a real estate professional specializing in residential or commercial real estate. The Real Estate Agent provides a wide range of services, from pre-sale consultation to post-closing follow-up.
Commercial agents typically earn much more in commissions and complete more transactions. Therefore, residential agents typically work many more hours outside of regular business hours.
Agents deal with many more residential properties than commercial. A typical commercial real estate transaction can take up to a year and is rarely completed in less than 60 days; however, some key distinctions to keep in mind for agents who wish to specialize in residential or commercial real estate.
Some of these may favor one’s strengths more than others and help agents decide which path best suits their personality. We encourage you to pursue your passion, as it will lead to a meaningful and lasting career.
Sheena Whitlock, a property expert, and blogger with over 15 years of experience in the field. The knowledge and skills Sheena has acquired during her career have given her invaluable insight into the property management business.
She has done her Property Development BSc (Hons) from the University of Portsmouth and completed her Master’s Degrees in Property Management from the University of Chicago.
As a professional, she has spent time working for various companies as a property management officer and currently works at Asset Info Hub where she shares her knowledge and experience on various property matters with people around the world, questioning their queries via blogging and virtual consulting services.