Real Estate Investing
Real estate investments have been attracting more and more buyers who formerly invested in stocks, IRAs and bonds. Whether the properties are residential, commercial, agricultural, or coastal, the appreciation rates have been outstanding. It’s commonly believed that property investments increase in value at a greater rate than funds deposited in savings, IRAs and even 401K plans. Back in the mid-1980s, for example, a one-and-a-quarter-acre lot in residential areas like Leon County’s Miccosukee Meadows sold for $5,000. Today, these same lots sell at prices approaching or even exceeding $25,000, producing substantial gains for investors who purchased when prices were low.
Understanding Real Estate Financing
National Association of Realtors (NAR) President Al Mansell says the services provided by real estate agents and brokers safeguard consumers. “It’s especially important to understand loan terms - a real estate professional can help you to avoid riskier products, in addition to walking you through the transaction process.”
Florida’s Boom in Real Estate Values
Partly because mortgage loan rates are low, the value of real estate continues to climb, especially in Florida. NAR Statistics show that single-family home prices rose 6.6 percent to a national average of $166,600 in the first quarter of 2005 when compared with the same period in 2004. Three Florida metro areas led the nation in increased property values: Bradenton, Sarasota and West Palm Beach. The strong real estate market has pushed up prices in Orlando, (28.7 percent increase from the first quarter of 2004); Miami-Hialeah, (up 28.4 percent); and Ocala (up 27 percent). Eighteen other Southern metro areas experienced double-digit increases in their median real estate prices, including Ft. Myers, Cape Coral, Punta Gorda, Tampa, St. Petersburg and Clearwater.”
The Orlando-based Florida Association of Realtors now has 125,000 members,” says FAR Project Editor Kerry Smith. “Just a few years ago, we had 80,000 members, but over the last three years the Association of Realtors has seen steady membership growth. Interest in the real estate business is increasing throughout the U.S. and the National Association of Realtors recently surpassed the one-million-member mark.”
Florida Regulation Over Brokers and Sales Associates
Regulated by the Department of Business and Professional Regulation, (DBPR) real estate sales associates and brokers who work in the Sunshine State must comply with all Florida Statutes. DBPR Press Secretary Kristen A. Ploska reports that in the 12 months ending on April 30, 2005, 84 citations were issued and 287 fines paid. Reprimands totaled 41 and 165 agents and brokers were placed on probation. When license suspensions and revocations are included, the total number of disciplinary actions taken against Florida real estate professionals was 948.
Desirable Characteristics of Real Estate Professionals
Real estate classes are ideal for people seeking new, lucrative careers; stay-at-home mothers who are available to show properties in the evenings and on weekends; and retirees who wish to supplement their incomes. The ideal candidate should possess excellent people skills, integrity and time-management abilities. Perseverance is important, too, as it is not uncommon for real estate agents to show one property to the same customers several times before transactions are completed.”
Agents’ first-year earnings vary depending on many factors,” says Steven Louchheim of the Tallahassee Board of Realtors, “including how many contacts they have and how many hours they invest in marketing properties.”
Real Estate Career Opportunities
Career opportunities in real estate include licensed sales associates (sales agents) who work for licensed brokers.. Most sales associates operate as independent contractors for brokers, but a small number are classified as employees of their brokers. To apply for Florida real estate licenses, an individual must be at least 18 years old with a high school diploma or GED. “The toughest problem new agents face is failing to understand that they are starting their own businesses,” Louchheim explains. “A new agent will tend to view real estate as a job, but not as their own business.”
While agents may engage in marketing efforts, acquire listings and show real estate properties to potential buyers, only brokers can accept commissions. The transactions of both agents and brokers are monitored by the Florida Real Estate Commission (FREC). The governor, with confirmation by the Florida Senate, appoints the seven-member commission, which also includes five real estate professionals. To ensure that the consumer’s interests are considered, two members of the FREC must be lay persons who have never been real estate agents or brokers.
State Licensing Examinations
The state of Florida uses Promissor, Inc., a private testing company, to administer the state examination in 15 testing sites in different areas of the Florida. To view the Promissor locations, click on the following link: http://www.realestate-school.com/testing_locations.shtml.
Students in the prelicense course should complete and file the application for licensing and register with the Florida Division of Real Estate (DRE). After the application has been approved, the applicant should contact Promissor at (888) 204-6289 to arrange a time for the state exam.
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