31 Real Estate Broker
What is it Like Being a Real Estate Broker
On this episode of the Unboxing Careers Podcast, Greg Zakowicz unboxes the career of a Real Estate Broker with Lauren Herskovic
Guest: Lauren Herskovic is a real estate broker at Moda Group, specializing in helping home buyers and sellers in the (greatest!) city of Chicago. Lauren is passionate about her work with clients, focusing on educating her clients, constant communication, and utilizing tried and true systems, making a seamless and (dare we say it?!) fun experience for her clients.
Connect with Lauren:
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What does a real estate broker do? Lauren Herskovic, a real estate broker at Moda Group in Chicago, discusses the intricacies of a career in real estate, including the differences between agents and brokers, the educational requirements, and the value that agents bring to clients in today's market. Lauren shares her insights on the real estate industry, navigating economic fluctuations, essential skills for success, common misconceptions, and advice for those looking to enter the field.
Understanding the Basics: The Role of a Real Estate Broker
A career as a real estate broker involves far more than just showing houses and closing deals. Brokers serve as trusted advisors, negotiators, and problem solvers for their clients. Whether helping buyers find their dream homes or guiding sellers through the complexities of listing their property, brokers must be knowledgeable about market trends, legal requirements, and effective marketing strategies.
Their responsibilities include:
Assisting clients in buying, selling, and investing in property
Conducting market research and property valuation
Marketing properties through listings, social media, and networking
Negotiating contracts and guiding clients through the legal and financial aspects of transactions
Coordinating with attorneys, inspectors, lenders, and title companies to close deals successfully
The job is dynamic, and no two days are the same. A broker might spend the morning at a listing appointment, the afternoon at an inspection, and the evening negotiating an offer.
Licensing and Education for Real Etstae Brokers
The educational requirements for becoming a real estate broker vary by state. In Illinois, Lauren completed a 45-hour course and passed a challenging exam, and then completed another 45 hours of education within the first two years of being licensed. While the coursework covers important topics like fair housing, it doesn't fully prepare you for the day-to-day challenges of the job. This is why many new brokers seek out a mentor, to learn the practical aspects of the job, like identifying potential problems with a home.
Why Do People Need Real Estate Agents and Brokers?
Today, many buyers start their search online. However, Lauren emphasizes that a broker's value goes far beyond simply finding a property. Especially in a competitive market with limited housing, a broker offers crucial expertise, such as:
Market knowledge: understanding different property types and neighborhood nuances.
Strategic Negotiation: crafting winning offers in a competitive market by networking with other agents.
Transaction Management: guiding clients through inspections, working with title companies, and handling insurance.
Unbiased Advice: helping sellers prepare their home and set realistic prices.
Lauren also underscores the importance of networking and building relationships within the industry. She noticed that transactions were smoother when working with agents she knew and trusted. Building a network can lead to more opportunities and give clients an advantage.
Challenges of Being a Real Estate Broker
While real estate offers exciting opportunities, it also comes with its fair share of challenges. Brokers do not receive a steady paycheck; instead, they rely on commission-based income. This means financial instability, particularly for those just starting in the field. Furthermore, long hours and high-pressure negotiations can make the job stressful and emotionally demanding.
Other challenges include:
Long and unpredictable hours, often including evenings and weekends. Lauren stresses that work-life balance requires setting boundaries and being proactive in planning personal commitments. Agents must be flexible, accommodating client schedules, while also maintaining their personal lives.
Emotional highs and lows due to the competitive nature of the business
Managing difficult clients and navigating stressful negotiations
Successful real estate professionals learn to manage these challenges by staying organized, maintaining a strong network, and continuously improving their knowledge of the industry.
Financial Planning and Economic Realities
It's essential for real estate professionals to be financially savvy. Lauren emphasizes the need for financial planning, especially because income can fluctuate with the economy. She advises against spending commissions impulsively and suggests hiring a financial advisor to manage finances. She warns against the common misconception of real estate agents being wealthy, noting that many agents have to leave the business when they do not save.
Key Skills for Real Estate Success
Thriving in real estate requires a combination of technical expertise and interpersonal skills. Brokers must not only understand the ins and outs of the market but also possess the ability to connect with clients and close deals effectively. Strong communication, adaptability, and perseverance are key traits that define a successful real estate professional.
To succeed, brokers should develop the following skills:
People skills: Understanding and managing clients’ emotions during high-stress transactions
Organization: Handling multiple clients, properties, and negotiations simultaneously
Market knowledge: Staying updated on housing trends, interest rates, and local market conditions
Sales and negotiation skills: Closing deals effectively while ensuring clients get the best possible outcomes
Self-motivation: Being proactive in generating leads and managing one’s own business
The Rewards of a Real Estate Career
While challenging, a career in real estate can be incredibly rewarding. Brokers get the satisfaction of helping clients find their dream homes or make smart investments. Additionally, the financial potential is unlimited—those who work hard and build strong client relationships can earn significant income. The ability to control one’s own career path and work independently makes real estate a great option for self-motivated individuals.
Some of the top rewards of a real estate career include:
The ability to build lasting relationships with clients
The potential for high earnings based on performance
The opportunity to work independently and grow a personal brand
The satisfaction of making a meaningful impact on clients' lives
Is a Career in Real Estate Right for You?Advice for Aspiring Brokers
Real estate can be a fulfilling career for those who enjoy working with people, negotiating deals, and embracing an ever-changing work environment. If you're considering a career in real estate, shadowing a broker, taking business and finance courses, and building strong networking skills can set you up for success in this competitive yet rewarding field.
Lauren offers several pieces of advice for those interested in real estate:
Develop financial literacy skills
Seek Out leadership and teamwork opportunities
Practice public speaking and stepping out of your comfort zone
Connect with people in the industry
Takeaways For Those Interested in a Career as a Real Estate Broker
Lauren emphasizes the importance of customer experience in real estate.
The role of a broker is often interchangeable with that of an agent in Chicago.
Real estate education varies by state, with Illinois requiring a 45-hour course and a challenging exam.
Networking with other agents is crucial for success in real estate.
Real estate offers flexibility, but agents must be proactive in setting boundaries.
The market dynamics have changed, making the role of an agent more valuable than ever.
Lauren's diverse career background contributes to her success in real estate.
Work-life balance is essential, but challenging to maintain in the industry.
Building relationships with clients can lead to long-term connections and satisfaction.
Daily tasks for agents can vary greatly, requiring adaptability and organization. There's a ton of paperwork in real estate.
You get paid when you close a deal, so financial planning is crucial.
Hiring a financial advisor can change your life.
Being organized and detail-oriented is essential for success.
You need to be self-motivated in this industry.
People skills are vital when working with clients.
Technology and AI can enhance your real estate business.
Financial literacy is important for young people entering the field.
Misconceptions about real estate include the idea that agents are overpaid.
The most rewarding part of real estate is helping clients find their dream homes.
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