How to Become A Real Estate Agent? ❖ Who is a real estate agent? ❖ The requirements for exercising the business ❖ The skills of the real estate agent ❖ The personal requirements ❖ The moral requirements ❖ Become a real estate agent through the franchise model Who is a real estate agent? First, it is good to define the real estate agent's role, as it is regulated by Italian law. The business agent in real estate brokerage is a figure of mediation who puts two or more parties about to conclude a deal without being linked to any of them by relationships of collaboration, dependence, or representation. This means that a real estate agent does not take the parts of either the buyer or the seller, but acts as an intermediary and takes care of supporting in the promotion and sale process in the case of the seller and in that of visiting the properties and buying in the case of the part that believes. In this, the personal interests of the agent do not come into play, but only his professionalism and his ability to be the best support to meet everyone's needs. The requirements for exercising the business Some objective requirements are thought necessary to act as a real estate agent: ▪ holding a high school diploma. In some real estate agencies, obtaining a degree may be a preferential requirement, but a degree is generally sufficient. ▪ Attendance of a compulsory professional training course, with the consequent passing of the relative written and oral exam at the Chamber of Commerce. This exam allows you to obtain the license as a real estate agent, an essential requirement for practicing the profession. ▪ Registration in the business register or the economic and administrative news repertory (REA), at the Chamber of Commerce ▪ Possession of professional insurance for real estate agents against professional risks 51
The skills of the real estate agent To carry out the work of real estate brokerage in the best possible way, an agent must possess a whole series of essential knowledge relating to the development of the profession and the real estate market as a whole. These will first be learned during the training course to acquire the license and then consolidated and deepened with direct work in the agency, which will allow you to achieve the fundamental practical knowledge for the job of the real estate agent, perhaps also specializing in specific segments, of the sector (such as residential and commercial sales and rentals). Over time, therefore, a real estate agent will learn to know in detail, for example, all the bureaucratic steps behind the sale of a property, the documents necessary for the sale, and how it is right to present and fill them in, but also the correct way to evaluate a property and to read the market trend of one's reference area. The personal requirements To become a real estate agent, however, not only professional and training skills are enough, but it is also necessary to respond to a specific character and personal profile to be entirely suitable for the pursuit of the profession. These characteristics are not a requirement considered fundamental by law, but they constitute a preferential element in the case of an interview to work in a real estate agency. The real estate agent works in contact with the public and, for this reason, must be available, kind, and cordial, always ready to answer the doubts of the customers and to solve the problems that may arise during the buying and selling process. The ability to listen and empathy of a real estate agent is essential since the house is an asset to which a significant emotional weight is also linked. Therefore, getting in touch with customers even personally is vital. In addition to good interpersonal skills, it is also essential to have solid sales and promotion skills, both of oneself, since it is a strength of a real estate agent to show himself worthy of trust and respect and the properties entrusted to his mediation. 52
The moral requirements Finally, since it is a professional job, to be able to fill the role of a real estate agent, the following moral requirements must be respected: ⦁ not having been subjected to anti-mafia regulations ⦁ not be subjected to ancillary administrative sanctions ⦁ Not be prohibited, incapable, insolvent, guilty of crimes, or guilty of any other offense punishable by a two- to a five-year jail sentence. When you request to be registered, the Chamber of Commerce verifies the latter type of requirements. 53
CHAPTER NINE WHY THE AGENCY AND NOT DO IT MYSELF What are the advantages of working with a real estate agency? Selling, renting, and shopping for a home are significant life events that bring joy, change, and stress. Using a real estate agent to purchase or rent a home means having a professional on your side who will help you through every step of the process. The real estate agent is not the one who brings supply and demand together, but also the person who can give the client advice and documentation about the property for sale's regularity, such as cadastral plans, the mortgage certificate, a copy of the title of ownership, the certificate of conformity of the systems, the building's energy certification, and the minutes of the most recent ordinary and extraordinary meetings. All information and data are made available to the customer before submitting an irrevocable purchase or rental proposal. It is therefore not only the one who can scour the market most effectively, allowing the customer to visit a more significant number of homes that match their budget and wishes, 54
The correct and professional real estate agent is the one who qualifies at any time as a real estate agent and upon request shows the registration card as a mediator to the RI / REA of the Chamber of Commerce and operates according to the standards present in the Code of Ethics, aware of the social function of the profession exercised. The real estate agent indicates the amount of the commission due in the contracts. Use the forms filed with the Chamber of Commerce, advertise the property's price for sale or lease, and use various offline and online marketing techniques to promote properties. The real estate agent is always a third party between the parties and is always required to serve the interests of the buyer and seller. It's important to remember that the mediator, according to the law (Article 1754 of the Civil Code), is the person who brings two or more parties together to conclude a contract which was not linked to any of them by relationships of collaboration, dependence, or representation; this means that the mediator must be impartial and pursue the interests of both parties, communicating all facts he knows about the contract's evaluation and security. Is It Worth Relying on A Real Estate Agent? Selling your apartment or property is often complicated, and in many cases, it is underestimated how demanding it is. Selling an apartment or house overnight is unthinkable. What is the current value of my property? How can I get the best possible price for my home? Do I have to go to the notary to sell the property? On which side will I be able to sell my apartment successfully? These are still the most straightforward questions to clear up before the sale. First, the owner must decide whether he wants to sell his property independently or with the support of a real estate agent. Saving the commission of a professional real estate agent is undoubtedly an attractive prospect, but this alleged advantage can quickly prove to be a double- edged sword. Requesting the advice of a real estate agent costs, but in many cases, it is worthwhile. The advantage of relying on a real estate agent lies in his experience, so much so that the costs are often more than offset by the higher sale price obtained for the property. 55
The Benefits of a Real Estate Agent The advantages of the services of a real estate agent range from the first consultation to the sale of the property and the delivery of the keys. The owner saves himself all the work, such as answering countless phone calls, always being reachable, carefully handling the paperwork, and managing the many demanding visits. In a nutshell, the benefit is a more efficient, faster, and better price sale. Extensive customer network To get your apartment or house to the right buyers, real estate agents leverage their network as well as other effective channels. It is usually not enough to publish single advertisements to sell 56
the apartment. The advantages of real estate agents also emerge from the fact that their client network often extends from the region in question to the whole world. Real estate in Switzerland is of great value and is in high demand internationally. With his experience, a real estate agent can usually get the apartment owners and potential buyers to meet faster. A realistic estimate of the purchase price The big challenge in selling real estate is putting it on the market at a realistic price. Real estate brokers have the advantage of knowing everything there is to know about the local housing market and prices. You give money away if the selling price is too low; if it is too expensive, you risk having trouble finding a buyer. Owners often overestimate their property and ask for too high a price, so the times get longer. At that point, the price is lowered, which, however, puts the property in a bad light and can be considered a disadvantage because any interested parties could be frightened by the sudden collapse of the price. It is also worth asking the real estate agent about the renovations. Sometimes these interventions can significantly raise the cost of the property, but other times it is not convenient to renovate because the market price would only slightly increase. Thanks to his experience, a real estate agent can better assess the situation. Negotiation skills and experience in negotiations Negotiation is one of the core skills and part of the know-how of a real estate agent who knows exactly how-to bring sellers and potential buyers together. This skill pays off, especially if the negotiations are long and tiring. Complicated bargaining is the norm when selling a home because large sums of money are at stake for the seller and the buyer. No emotional connection with the property It's not simple to sell a home where you've lived for a long time. Many good memories are linked to the house; maybe even their children have grown there. Obviously, in these cases, selling your apartment is difficult. A real estate agent evaluates the situation more pragmatically, focusing on the sale of the property. Legal knowledge 57
Any errors in the course of the property sale can be costly. Non-experts often lack solid knowledge of contract law, land register, and financing. Sellers save themselves from nasty surprises with a real estate agent, and the property can be successfully sold to new owners. Real estate agents undertake the verification of the contract, provide support with the land authority and verify the buyers' solvency. 58
CHAPTER TEN The right real estate agent In Switzerland, anyone can call themselves a real estate agent. The level of education is much higher than a few years ago; however, some black sheep still demand disproportionate commissions among the agents. Membership in the Swiss Chamber of Mediators (CSM) indicates the seriousness of an intermediary. If you require a real estate agent to sell your house, we suggest gathering several offers, checking references, and negotiating the contract's terms. Selling a house or apartment is a life-changing decision involving a lot of money for both parties. A real estate agent's experience and negotiation skills can make a difference. The advantage of relying on an intermediary is that he will take care of a whole series of unpleasant and complicated tasks for you. ADVANTAGES AND DISADVANTAGES OF REAL ESTATE INVESTING Before considering the advantages and disadvantages of real estate investing, it's necessary to grasp the difference between an asset and a liability. In simple terms, we believe an asset brings us money; it gives us a positive cash flow. Conversely, a liability takes away our money and is negative cash flow. In practice, therefore, a property in which we live that does not bring us any positive cash flow cannot be considered an asset, but it is a liability because it takes away our money. Conversely, a property that we have bought to re-let can be viewed as an asset. Advantages of investing in real estate 1. Physical investment The first benefit of investing in real estate is investing money into a tangible asset. Unlike investing in mutual funds or stocks, we can touch the investment where the whole process is 59
done digitally using binary code. If nothing unexpected happens, we will continue to find our property in its place. 2. A basic human need Housing is a basic human need, defined in Maslow's pyramid of needs. We are all looking for a place to settle down, feel safe, and perform other conditions such as hygiene or our hobbies. As a result, residences and rents in desirable locations will always be in demand. 3. Lower volatility The real estate market has less volatility or volatility. Talk about how quickly the price changes over time. Volatility is a natural characteristic of any market and implies a certain degree of uncertainty for investors. Markets rise and constantly fall because they react to supply and demand—the more the volatility, the greater the investment's risk. If we compare the stock or commodity market with the real estate market, we find that it has lower volatility because it changes by a few percentage units per year. In contrast, commodities and stocks change by a few percentage units per day. Therefore, we consider the most stable real estate with more predictable developments. 4. Two returns Real estate offers two types of returns in one. They combine capital appreciation with cash flow. The first mentioned capital appreciation is a type of income obtained from the increase in the price of real estate. We mean the income from rental properties by cash flow, but the vast majority of investments in the financial market only make one of these incomes. 5. Financial leverage One of the most significant benefits real estate investing provides is leverage. It is the only form of investment in which a bank will lend us money to buy and acquire an asset. They are pleased to do this because they have a lien on the property in question. Another advantage of investing in a rental property is that the bank loan is paid for by someone else. 6. Tax exemption The Income Tax Act regulates how income from the sale of real estate can be exempt from tax. The income from the sale of the property is exempt from income tax and health insurance contribution if we have owned the property for more than five years or have been exempt 60
from commercial property for more than five years. Revenue from real estate rental is also not subject to the obligation to pay the health insurance contribution. 7. Check it out Control over real estate investing is another benefit that mutual funds or stocks will never allow. We have no control over their management or the company's management, but quite the opposite. We are paying the mutual fund manager and company management to take control of our investment. When we invest in real estate, we can react operationally and decide whether to increase or decrease rents. 8. Depreciation and costs We can take advantage of the depreciation and take a 1/40 tax deduction each year for the property's value if we have commercial real estate. It is also beneficial to deduct the costs associated with paying the mortgage from the tax base and any costs associated with managing the property. Disadvantages of investing in real estate No investment is without risk, and real estate has its drawbacks, so it's a good idea to understand them before you start investing. 1. Higher initial investment This is one of the main disadvantages because the banks have tightened the conditions for taking out a mortgage loan, and you have to invest 10-20% of your resources. Yet, after years, we will own a property that has been paid for by someone else. However, there is an option to invest even with less start-up capital through crowdfunding. 2. Less liquidity It takes longer to sell a property, and therefore we get to the money later than mutual funds, where we have the money in the account within a week. When we urgently need the money we have saved in the apartment or house, we expose ourselves to the potential risk of selling the property under the price. 3. Property management 61
Lack of experience in property selection, tenant selection, and management can lead to financial losses resulting from vacancy and potential deterioration of the property by the tenant. This disadvantage is closely linked to another penalty, which is time. 4. Long-term planning Investing in real estate requires long-term planning thinking about the years ahead so that we can, for example, apply for an exemption from income tax on sales, which can save us a considerable sum. 5. Decrease in value Investing is always associated with some risk, and in the case of real estate, it is a decline in value. Not in all situations can we sell an investment at a higher price than what we put in it. The supply and demand in the segment determine the market's rise and fall. Short-term downturns punctuate long-term growth in the housing market, so it's essential to emphasize property selection and be careful when property prices are at their peak. 62
Conclusion The profit-oriented Real Estate Investment Market is a complex web of businesses from many industries. Changes in global economic conditions have the most significant impact on this sector's prospects. Depending on its focus, many elements influence a company's strategy, general performance, and future, ranging from land development to retail shopping centers to industry/office space to apartments and multi-family homes. CBRE invests in technology and infrastructure to serve its clients better and become more efficient in their markets. CBRE may now use a significant number of office inventory (properties managed or owned) and be more robust to economic shifts resulting from recent purchases. Jones Lang LaSalle has amassed a sizable portfolio of buildings under management and has expanded its services to include investment management. Kimco specializes in retail shopping centers and commercial real estate investment. Hammerson has positioned itself as the UK's and Europe's top developer and owner/manager of retail buildings. Each of the companies we looked at has safety policies, and governance plans to maximize the benefits of their good governance processes and ensure that they are always meeting their full potential in terms of safety rules and initiatives. In terms of financial success, these organizations excel in distinct areas. With a high P/E ratio, Kimco outperforms the competition and the industry average. The company with the highest gross margin is Hammerson. They all have modest dividend payout ratios, which is typical in this business. According to their financials, they are reinvesting most of their profits into new properties. With a 9.1 percent return on investment, CBRE leads the group, followed by JLL at 7.8 percent and Kimco at 3.6 percent. These numbers are more significant than the industry average, showing a good return on investment in these companies. CBRE and Kimco are nearly double the size of JLL in terms of market capitalization. In this regard, Hammerson is somewhere in the middle. While not all companies submit comprehensive GRI reports, they all participate in Corporate Responsibility Reporting, becoming an integral element of their operations. These companies aim to implement and become industry leaders in this field, thanks to the broad adoption and 63
requirements of Green Building Certifications for new construction, such as LEED in the United States and BREEAM in the European Union. Sustainability is being adopted at all levels of businesses, not just in terms of how buildings are constructed and managed but also in how all levels of the organization, down to individual employees, may be involved. Each of these businesses adapts to changes in technology, the economy, and the environment. The challenges ahead may present possibilities. Each company we investigated seemed to be making significant decisions to position itself to meet and excel in the future commercial real estate market. 64
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