How Commercial Real Estate Broker is different from Real Estate Agent?

 Real estate is divided into two types: commercial and residential. And the only distinction between the two is the type of property that an agent specializes in. Commercial real estate brokers are professionals who specialize in purchasing and selling commercial (business) assets. Residential real estate agents are experts in purchasing and selling residential (or "home") assets.

Both types of agents must complete the same basic education and qualification requirements. However, they must complete additional training to deal in commercial or residential real estate effectively once they want to specialize.


Differentiation between Commercial Broker and Real Estate Agent

A career in commercial real estate differs significantly from a career in residential real estate in many ways. Here are some of them:

·         Commercial real estate brokers typically earn far more than residential real estate agents in annual profits. It is due to higher commissions and the fact that the residential real estate industry is more susceptible to market volatility.

·         Commercial agents usually work "regular" 9-5, 40-hour workweeks. Residential agents are more likely to work after hours.

·         Commercial real estate brokers and residential agents can receive different types of on-the-job training. Commercial agents are more likely to work for commercial brokerages and receive advanced training. Their job requires a lot of math and analysis. They must be familiar with business terms such as Net Operating Income, profit and loss, tax policy, Return on Investment, Cap Rate, and Internal Rate of Return name a few.

·         A residential property sale is reasonably straightforward. The average transaction takes 30-45 days to complete. A commercial transaction can take up to a year to complete, but it is rarely completed under 60 days.

·         Since commercial property sells for more than the average home, commissions on commercial sales are typically much higher.

·         Another distinction to keep in mind is that commercial brokerages have more stringent recruiting conditions, making them more difficult to break into. In contrast to the more "corporate" commercial market, the traditional residential office culture is typically more laid back.


Final Thoughts

You're about to begin your real estate career in Houston. So, do you want to go commercial or residential? Agents usually are skewed one way or another due to disparities in pay, hours, and training. However, you can still put one on for size and then change your mind later. We suggest that you choose a field in which you are most interested, as this will lead to a more satisfying and long-term career. 



Location: Commercial Real Estate Broker, 1610 FM 1960, Houston, Texas 77073


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