I recently received a Seller referral from the CEO of JMJ Financial of Irvine (my awesome mortgage lenders), I learned from my client when we were in escrow that they were asked "Do you want an agent who wants to be your friend? Or an agent who gets the job done right?" They picked door #2. Which apparently led to me. And in the end led to them making $50K more than expected. (hoorah!)
So, I'm thinking shoot, am I not friendly? I think I am, I'm very analytical though, attention to detail a must. If I had been a cheerleader in High School, I'd probably be selling Mary Kay cosmetics instead of Real Estate. I do love Mary Kay & I have full R-E-S-P-E-C-T for those awesome ladies. Alas, I was not a cheerleader.
Why I am not 100% in Commercial Real Estate.... I love selling properties where there are kitchens & gardens, I love working with families who are realizing their dreams of home ownership. I think it's more rewarding to me that my clients are happy whether buying or selling & making a home their own.
With Commercial Real Estate it's solely about Investors & the bottom line, no emotion involved, no gardens, no remodeling the Kitchen, no walk in closets, ocean views or the Dream Master bathroom. Commercial Real Estate lacks the personal-ness (yes I know that's not a word, it is 11:37pm ok?) that I desire in my business.
However, after almost 17yrs in Real Estate, I do have the ability to crunch #'s, work with investors & sell an office building, multi family or motel or how about the Bay Theater in Seal Beach, if I have clients who want that sort of property.
I hope my comments & opinions tonight are giving you some insight into which avenue you would choose. Feel free to shoot me an email, I don't look back on this same Trulia posting for answers after mine.
Emily S. Knell
Realtor Since 1996
Realty ONE Group
They are different and commercial requires deeper understanding of financial analysis and terms...
Even within commercial there are many niches... you can be a retail lease gent... an office leasing agent... and industrial space agent... work lease listings or sales...
I do residential, multi-family commercial and development commercial... but I have all kins of degrees and experience that allows me to add value to my clients in these areas.
Welcome to a great profession! Make sure you deliver value to the community!
- there are many residential transactions each month and each pays relatively less
- there are fewer commercial transactions each month, but each pays much more
I broker residential, land and small commercial because each is a marketing channel for the other. It took a lot of years to develop the expertise necessary to compete with each of these property types and most of that experience happened by accident. It's good to focus on one type when you start out. So it's back to the question of would you rather do a lot of smaller priced deals or relatively fewer deals that pay much more. There are other questions to ask yourself, but you may want to start with that one.
If you are serious about commercial real estate, search about CCIM designation, the highest level designation for commercial real estate. Of course you don't need it to be a commercial agent, but what you learn and what network and other benefits is priceless.
How about talking to some "successful" commercial agents and learn how it is in real life, or starting residential first, get the feeling of how to be an agent. You can always change your mind. Meanwhile remember, most agents are residential. Commercial means, sell prices can be very high, so few even 1 transaction a year can be normal, in big billion dollar deals, 4-5 agents may be involved. It happens slowly. their paperwork, calculation, terminology everything is very different. You need seriously experienced mentor to be seriously successful.
One tip, residential involves emotions, sometimes lots of it, drama etc, commercial is all about numbers, generally no emotional attachment, some prefers commercial and can't deal with residential.
Please remember, whatever your decision is doesn't have to be your final decision for the rest of your life, find successful agent in both fields, and compare. good luck.
Well..I work in both areas and I think I'm in the minority on that, but I just happen to have a background that is conducive to working in both.
Commercial is a very logical type of business and beautiful for that reason. The transactions are more difficult, take more training (much more), and are larger. The commercial business is harder to break into then residential, however, the competition is different then what you will find in Residential Brokerage.
Unless you take C.C.I.M. courses or have a Business Degree,. you might find it harder to get into a big Commercial Brokerage.
There are a few Residential Brokerages that also have Commercial Divisions, that might be the best way to get started.
Now those $100,000 + bonuses were exciting but did not occur frequently enough. Although there was little emotion involved from the buyer. there was a lot of emotion on my side. One can be too invested in the outcome. For me, a change to residential, where the rolller coaster was not as tramatic was an easy, obvious and convienent choice.
The center of gravity shifted regarding my purpose, as my residential business gained traction.
Both commercial and residential have rewarding and fullfilling aspects. Today, especially after the last five years, the need for truly professional real estate consultants has grown along with the complexity of the business. When working with the preferred buyer and seller, those who recognize the value of a professional, the needed fullfillment that keeps me at the keyboard into the wee hours is secret of the 'little engine' that could. The center of gravity clearly has moved from profit making to solutions provider. An added benefit is the relationships that are the unexpected byproduct of helping others acheive their dream.
There are a gazillion ways to make money through real estate. Walk through the door that is open to you. Be honorable, Be respectful, Work hard. Choose kindness. The rest is beyond your control.
Commercial real estate and residential real estate are very different businesses. I am in residential, and wouldn't choose to do anything else. I like the satisfaction of dealing on a more personal level with my buyers and sellers than is possible in commercial. That also means being able to deal with a lot of emotion, including a lot of drama. That is a personal preference. I recently upgraded from a salesperson's license to a broker's license and the instructor is a commercial broker. He said he could never deal with the emotion of residential and likes that commercial is essentially strictly business. It really depends how closely you want to get involved with your clients. Someone's home, whether buying it or selling it, is a very emotional and stressful thing for that person, and I really enjoy guiding them through the steps and getting them to their goal. It's not for everyone, but i love it.