Commercial real estate training Vs Residential Real estate training: What is the difference between commercial real estate training and residential real estate training? Commercial real estate agents typically work to buy, lease, or sell commercial properties such as office buildings, warehouses, commercial retail space. Residential agents focus on buying and selling homes for people. The two fields may share some similarities but there are many differences in commercial vs residential that need to be considered before choosing which one you want to study or pursue a career in. In this post, we will discuss 10 of the most significant differences between commercial and residential property management so you can make the best decision possible when deciding if commercial or residential is right for you!
1- The commercial real estate agent primarily focuses on properties that are used for commercial purposes. Residential agents focus exclusively on buying and selling residential property such as homes, condos, duplexes, or other single-family dwellings.
2- Commercial real estate training typically requires a four-year degree in finance, accounting, or economics plus experience before becoming certified. Residential real estate training typically requires a two-year degree in finance, accounting, or marketing. Residential real commercial real estate agents need to be licensed by the state.
3- Commercial properties are commercial spaces used for commercial purposes such as office buildings, retail stores, and restaurants. Residential property is any other residential space including single-family homes, condos, and apartments.
4- The commercial agent’s primary responsibility is leasing out commercial space to tenants that want them while the residential agent primarily sells one house at a time to families who may wish to buy it from their own home or move into an apartment they purchase. Real estate courses help you learn how long it takes for things like foreclosures and short sales (a sale of your home) to take place before you can sell commercial or residential property.
5- Commercial agents may be able to use their own branded materials, while the other type of agent may have to buy them from the company they work for. Commercial real estate courses also teach how to build and manage a portfolio which is an important part of commercial dealing that Residential Real Estate does not cover at all in its training because it only deals with one house at a time.
6- The commercial agent’s primary responsibility is leasing commercial space, while the residential agent’s primary responsibility is helping to sell and buy commercial property
7- Residential Real Estate has a lot of restrictions as it relates to who can purchase commercial property commercial properties are generally bigger than residential properties because they usually encompass more land or have stories commercial agents may work on commission-based income whereas some residential agents are paid hourly rates for their services. Commercial agents also work long hours, often six days per week, which means that there isn’t much time for any other aspect of life.
8- many people trade stocks separately from their full-time jobs (which might not even include working in an office) but trading commercial real estate is generally on a full-time basis, in-person commercial agents are often more aggressive and less empathetic to sellers with higher demands than residential ones because commercial buyers may be turned away if the seller doesn’t lower their price commercial real estate agents also work longer hours sometimes six days per week. This means that they might not have as much time for other aspects of life.
9- There’s no such thing as downtime in commercial real property, said Jim Harris, president of KW Commercial Real Estate Services. You can never give up. Residential Agents usually only work weekday business hours so it leaves them more free time during the day or at night. They’re able to balance things like family obligations with commercial real estate work.
10- Commercial agents also have a higher turnover rate than residential ones because commercial properties require so much more time and effort to sell.
11- The level of service is going up, said Harris. People are not sticking around for five or six years. Residential Agents usually stick with one company, where commercial Real Estate Agents change jobs every few years as new positions open up.
12- Commercial transactions often involve larger sums of money which may be stressful on an agent’s family life when they’re constantly traveling internationally.
13- There was no such thing as taking your kids to soccer practice, he said. Residential property agents can avoid this stress by only working in the local area and having flexible hours that allow them to spend time with their families.
14- Commercial buildings may take years between sales, but Residential ones can often be sold in a matter of days or weeks as the market moves faster.
15- Residential agents have more range when it comes to what kind of properties they sell. They could work for a company that only sells luxury homes, while commercial Real Estate Agents might specialize in industrial property.
16- In commercial transactions where people list multiple units at once, an agent typically specializes in one type of unit apartments for instance which means a lot less competition from other brokers for those deals.
Here you go 16 differences between commercial and residential real estate agents.
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