Real Estate is one of the most popular job sectors in Pakistan, engaging a large segment of society in its dealings. Real estate has a diverse job market with multiple roles, helping clients in buying and selling real estate property. They are known by different names such as real estate dealers, brokers, agents, etc.
If you are planning to become a real estate agent, you have to decide between commercial and residential real estate agents. You must first decide your area of expertise and interest and choose the one which suits you well.
People often get confused with commercial and residential real estate agents. To clear the confusion, Graana.com, Pakistan’s smartest property portal, has gathered detailed information about the difference between Commercial and Residential Real Estate agents.
|Who is a Real Estate Agent?|
|Difference between Commercial and Residential Real Estate Agent|
|Residential or Commercial Real Estate Agents? Which one to choose?|
Who is a Real Estate Agent?
Real estate agents are licensed professionals who help clients in buying and selling commercial (Business) and residential real estate properties. In Pakistan, there are many real estate companies, and Graana.com is known among the masses for its professional real estate agents.
To obtain the best price, real estate agents negotiate on behalf of both buyers and sellers. The real estate sector is among the highest-paying sectors in Pakistan.
Some key responsibilities of the real estate agents include scheduling appointments with clients and showing properties, updating property listings, drafting and delivering documents, performing real estate market analysis, and keeping up to date on the ongoing real estate market and price trends.
Commercial Real Estate Agent
Commercial real estate agents deal with people who are looking to buy, sell, and rent warehouses, buildings, malls, office complexes, parking areas, and undeveloped commercial areas.
The buying and selling of commercial properties are typically more time-consuming and complicated than residential transactions, and commercial agents frequently represent both the buyers and the sellers.
Residential Real Estate Agent
Residential real estate agents deal with residential properties. Residential properties refer to private properties such as buying and selling houses, plots, condos, farmhouses, and apartments.
Agents of this field finalise deals on behalf of their clients from the process of showing the property, filing, and responding to the queries of clients, paperwork, property listing, and residential inspections.
Difference between Commercial and Residential Real Estate Agent
The main goal of real estate agents is to help clients or investors in buying and selling property. However, both commercial and residential agents work with real estate properties.
There are some different factors based on the type of property, education, sales, earning, etc. We have listed below the key differences that can help you choose between commercial and residential agents.
Real estate agents do not usually have a fixed salary. They rely on commissions from commercial or residential property sales. The buying and selling of commercial properties take a long time, but commercial real estate agents earn a high amount of commissions as compared to residential agents because they deal in higher-value projects.
Residential agents do not earn high commissions as the residential market fluctuates with time but they are much easier to sell as people are always on the lookout for residential properties.
In most countries, commercial agents follow a proper schedule. They work in specific business hours five days a week. Commercial transactions are time-consuming as they focus on large projects which take time to process.
If you are well with time management, then you can opt to become a commercial real estate agent. However, residential agents are more flexible in terms of timings as they can work anytime, any day. If you choose to be a residential property agent, you can generate passive income as it gives you the option of working part-time.
Due to the high demand for residential properties, residential real estate agents tend to have more clients as compared to commercial ones. However, getting commercial clients is tougher since commercial projects are much less in number compared to their counterparts.
However, the market of commercial properties is stable, and you can get a higher return on investment.
Education and Training
To become a successful real estate agent, whether it’s a commercial or residential agent, it is important to have a good education. The level of education for real estate agents varies across regions and cities.
To become a residential real estate agent, there is no specific educational background, but you should have a license. On the other hand, if you want to be a commercial real estate agent, you should have a college degree, preferably in business or finance. Commercial agents must deal with tax, cap rate (capitalisation rate), profit, loss, and ROI.
Good education and training can help you get more clients on the basis of good skills in calculation and database. Training and certification ultimately reward you in the form of a decent commission.
Many institutions are offering real estate training and certification. People who are looking for training and certification related to real estate can find these course at PIDE, NUST, and UCP, as they offer real estate education in collaboration with Graana.com
Residential or Commercial Real Estate Agents? Which one to choose?
To sum up, these differences might help you in choosing between residential and commercial real estate agents. However, the decision to become one or the other depends on where you operate and how much time you have on your hands.
When making a decision, it is best not to rush to a conclusion because your future trajectory in the real estate sector could depend on your choices. You should choose the area which you are more passionate about and which aligns well with your goals.
If your goal is to earn more money, being a commercial real estate agent would suit you well. However, if you want to work in a flexible environment and are looking for a part-time job with less academic qualifications, becoming a residential real estate agent might be a good fit for you.
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