5 Real Estate Professions in the Philippines and How Much They Earn
The real estate profession has expanded and offers one of the widest career selections in the business world today. Imagine working in a career with an income that isn’t usually limited by an hourly wage or a corporate-dictated salary range and if you’re lucky, a flexible schedule to boot.
Assuming you choose the path that’s right for you, a career in real estate can be profitable and fulfilling. From helping people buy and sell homes, office rentals, industrial property to planning, real estate counseling, appraisal, and research, there are so many reasons to choose real estate as your career.
Here are 5 Real Estate Professions in the Philippines:
- Real Estate Consultant
According to RESA law: A real estate consultant is a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgement on: acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon.
Real estate consultants provide research, analysis and advising services to clients such as construction developers, investment banks, mortgage lenders, materials producers, builders and property investors. Some consultants provide services to many types of business or investors, while others specialize in a particular type of client. As a consultant, you can either work for an established firm that already provides these services or start your own business.
- Real Estate Appraiser
According to RESA law: A real estate appraiser is a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders or offers to perform services in estimating and arriving at an opinion of or acts as an expert on real estate values, such services of which shall finally be rendered by the preparation of the report in acceptable written form.
Real estate appraisers determine the value of properties. Real estate is appraised to determine many types of values—assessed value for tax purposes, investment value or present value for potential investors, “book” value of accounting purposes, rental value for income projections and insurable value. Appraisers need to know acceptable principles of appraisal and related information. They need to have practical experience, technical education, good judgment and some knowledge of mathematics, accounting and economics. Furthermore, An applicant for license as a real estate broker must have the following qualifications : (a) at least 21 years of age, (b) not convicted of any offense involving moral turpitude, (c) at least have five (5) years experience as a licensed real estate broker or five (5) years experience as an appraiser in any government agency, banking/financial institution of any company involved in appraisal of real estate properties and (d) must pass a real estate appraisers examination.
- Real Estate Assessor
According to RESA law: A real estate assessor is a duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real properties including plants, equipment, and machinery essentially for taxation purposes.
Real Estate Assessor assessors of real estate estimate the value of land and the buildings on the land usually before it is sold, mortgaged, taxed, insured, or developed. Although assessors of real estate work in offices, they often spend a large part of their day visiting properties. Most work full time during regular business hours.
- Real Estate Broker
According to RESA law: A real estate broker is a duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, acts as an agent of a party in a real estate transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein.
Real estate brokers together with the help of sales agents/salespersons assist clients to buy, sell, and rent properties. It is a common perception that brokers and agents almost do the same type of work, but brokers are licensed to manage their own real estate businesses and have the necessary training, education, and experience. He/she is armed with legal requirements such as: passing the government examination for brokers, NBI clearance, surety bond, and secures necessary certificates. He/she also undergoes Continuing Professional Education and is properly guided by Code of Ethics, as required by the Professional Regulation Commission (PRC).
- Real Estate Salesperson
According to RESA law: A real estate salesperson is a duly accredited natural person who performs service for, and in behalf of a real estate broker who is registered and licensed by the Professional Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration.
A real estate salesperson must work under a real estate broker. No examination is required for real estate salespersons as stated by RESA law but there are minimum requirements the applicant must possess. What many seem to ignore is the vital role that real estate salespersons contribute to the well-being of the real estate business and industry. The unsung heroes of real estate are thrust in the background of the real estate service practice simply because their functions and responsibilities in the real estate world are not given much importance.
How much do they earn?
According to Salary Explorer, the average monthly salary of a Real Estate Agent in the Philippines 2019 is P41,396 while that of a Real Estate Broker’s is P48,230. Another way to get earned income in real estate would be through commissions. In the Philippines, the common commission rates for brokers are 3% to 6% while agents usually get 2% to 3%. But there’s a downside if you rely on earned income only. No income comes in if you’re unable to consistently find a property to flip or to broker and complete the deal by actually selling it and closing the deal. Don’t forget that if you earn commissions by being a broker or an agent, you also have to pay income tax and your earnings will get taxed at earned income levels.
Success in real estate or any endeavor for that matter does not come easy and in a short period of time. It takes years, a lot of hard work, unending sacrifices, even frustrations, disappointments, and the need of continuing challenges to improving one’s craft. Financial rewards come from it and afterward.
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