Main Differences between Education of UK & US Real Estate Agents
There are a lot of differences between America and Britain. Some of these differences include dialect, food, and way of life. Also, there is a distinction in the housing market. Likewise, there is a contrast in real estate agents’ education requirements in these two locations. Below are differences you may want to know about.
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Education Requirements
In general, you do not need any certificate to operate as a real estate agent in the United Kingdom. This requirement makes getting into the business easy. Plus, there are no regulations that mandate licenses for agents. On the other hand, the industry in the UK is not as lucrative as you will find it in America.
In the US, you need to have at least finished high school to get a real estate license. Likewise, you are more likely going to make more money facilitating housing transactions in America. Depending on the state, there may be other regulations you must adhere to. Also, each state requires you to present documentation that proves you had gone to high school to get licensed. Other requirements include:
• Taking pre-licensing courses;
• Applying for the license;
• Paying specific fees;
• Taking exams.
Interstate Practice
Working as a real estate agent in multiple US states is not always straightforward. Sometimes you will have to obtain a new license if you want to practice within the territory of another state. Some states have agreements that allow agents to switch their permits easily. However, this process is different in the UK. Since you do not need a license to operate, you are at liberty to facilitate the buying and selling of properties across the United Kingdom. The only requirement is to ensure all activities and transactions are legal.
Additional Education
Getting a bachelor’s degree or more is not required on either side of the Atlantic. However, getting a degree is advantageous to you in America. It improves your chances of working for a real estate agency that pays well. Additionally, you have a better opportunity of creating a business that flourishes. The advantage of studying this course is also that you will learn all aspects of the trade.
Other courses that are beneficial for an agent include:
• Accounting;
• Economics;
• Business management.
Studying any course relating to trade can make you a better agent.
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Understanding Differences in Terms
The word real estate is popular in America and North America. In this location, people who trade properties are called agents. When you cross to the UK, being a real estate agent means becoming a sale negotiator. The houses you trade in are generally referred to as property in Britain. Besides, you may not work as an individual in the UK for you to be referred to as an agent. Instead, you will primarily operate within a larger company involved in buying and selling properties.
Transaction Processes
As stated earlier, you will need a license to operate as a real estate agent in the United States. As such, you are usually hired by the buyer. Once hired, you are responsible for negotiating costs, drawing paperwork, and closing the deal. You will also handle all the costs associated with the entire transaction. In addition, working as an agent means you may operate as an independent contractor. That said, all the described processes are different across the pond.
In the United Kingdom, it is the responsibility of the seller to hire a sale negotiator. This person’s job is to facilitate the interactions between the buyers, lawyers, and agencies responsible for selling properties. It is clear from this that the property market in the UK is oriented towards the advancements of companies instead of individual career progression. The sales negotiator (brokerage firm) handles all aspects of a sale.
Learning About Commissions
Whether in the UK or US, real estate agents (sole negotiators) operate to earn commissions. However, there is a clear difference in earnings in each country. In the United States, you can quickly become a wealthy person if you are involved in buying and selling top-tier real estate. Also, you make the bulk of your money from sales commissions. The process primarily involves listing properties and getting the houses or apartments sold. The amount of money an agent makes depends on the listing types and location. As such, you can make a few thousand or more depending on the properties you can sell.
Things work differently in the UK. An agent usually earns a salary. Also, the commission you get for sales and rentals is tiny compared to what agents get in America.
On average, you will not make more than $20,000 a year. This amount may likely double when you acquire several years of experience. However, you are entitled to a 10% bonus for making the sale. Additionally, a yearly cap is placed to limit the size of your reward.
In Conclusion
Real estate agents handle the buying and selling of apartments, buildings, and other properties, and yet there are many differences associated with being an agent in the US and UK. In the US, you require at least a high school education to get a license and work in the industry. However, you do not need to complete high school or require a permit to work as an agent in the UK. Similarly, there are rules which govern interstate practice in America, while these requirements do not exist in Britain. Furthermore, possessing a degree can be advantageous if you operate as an agent in the US. Finally, the terms used to describe the profession and the processes are different in each country. Hopeggu, this article gave you an insight into the profession of a real estate agent in the US and UK, and now you have clarity regarding the similarities and differences of this trade in both markets.
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