SIC 6531 Real Estate Agents and Managers
SIC 6531
This classification includes establishments primarily engaged in renting, buying, selling, managing, and appraising real estate for others.
531210
Offices of Real Estate Agents and Brokers
813990
Other Similar Organizations
531311
Residential Property Managers
531312
Nonresidential Property Managers
531320
Offices of Real Estate Appraisers
812220
Cemeteries and Crematories
531390
Other Activities Related to Real Estate
Real estate agents and managers assist people who are purchasing, selling, leasing, financing, and building places to live. The industry also includes agents and managers who work on commercial real estate, including high-rise office buildings, shopping centers, industrial plants, ranches, medical centers, museums, and theaters.
The real estate industry employs hundreds of thousands of full- and part-time workers in the United States, including real estate agents who assist buyers and sellers of property, mortgage brokers who assist with financing, leasing agents who lease residential and commercial real estate, property managers who manage the property of others, appraisers who analyze the fair market value of property, and developers who build new structures. In the mid-2000s, more than two million real estate agents held licenses in the United States.
The overall health of the real estate industry is closely intertwined with swings in the economy. As businesses grow, they generally acquire more real estate to expand their plants and hire more workers. The supply and demand of available homes, office buildings, and other real estate are strongly influenced by the availability of financing for developers who develop land into residential and business properties. Therefore, during periods of tight credit and declining economic activity, real estate activity is low. Changes in tax laws and interest rates also have a great impact on the real estate industry.
In the mid-2000s the real estate industry was booming as a result of historically low interest rates and increased economic activity. In 2004 the industry posted its fourth straight year of record housing sales, with record gained expected for 2005, and real estate firms collected $6.1 billion in commissions. However, the industry's landscape was being challenged by an influx of discount brokerages who offered services below the traditional 5 to 6 percent commission.
Real estate is a service business involving a variety of professionals who act in concert to bring about the purchase, sale, financing, leasing, or construction of property. It can involve residential real estate, commercial real estate, industrial property, agricultural land, or vacant lots.
Real estate brokers or agents generally earn their income from commissions on the purchase, sale, or leasing of real estate. In most states, a real estate broker holds an advanced license and manages an office of real estate agents. The agents have less experience and work under the supervision of a broker. When the agent earns a commission, it is usually split between the agent and the supervising broker. The term "realtor" is a registered term belonging to the National Association of Realtors (NAR), and only brokers and agents who belong to the organization may use the term. At the end of 2004, NAR's membership exceeded 1.1 million.
Homeowners usually consult with one or more real estate agents when trying to sell a home. The agents discuss with the homeowners the price at which the property might sell, develop their plans for marketing the property, outline the strengths and weaknesses of the property, and determine how the property compares to other homes on the market. The seller then selects one agent to market the property and represent his or her interests when it comes to negotiating a contract of sale. The agent and the seller sign a contract authorizing the agent to act on behalf of the seller and market the property in exchange for a specified commission upon the sale of the property. If a buyer is not found for the property, the agent does not receive any commission.
Moreover, buyers of residential real estate generally contact one or more agents to scout neighborhoods for homes fitting their requirements in terms of size, price, location, and amenities. The agent then represents the buyer in negotiating a contract and assists in obtaining inspections of the property by experts, such as structural and termite inspectors, and may assist the buyer in obtaining a mortgage loan.
Some real estate agents are relocation specialists and work primarily to assist individuals who are relocating to another geographic area. They must have extensive knowledge of school facilities and other neighborhood attributes in order to properly serve their clients. They are sometimes paid by an employer that is relocating its employees.
Commercial real estate agents work in a similar fashion when the purchase or sale of commercial...
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