How to start a career in real estate

Between Australia’s recent property boom and the rise of TV shows like Luxe Listings Sydney and Million Dollar Listing New York, real estate is a career that’s enjoying its moment in the limelight.

But what does it really take to succeed in the industry, which qualifications are required and how do you get your foot in the door?

We spoke with Victor James Pisanos, who is the Chief Executive Officer of real estate training organisation, Validum Institute to find out more…

Spotlight on the industry

Employing over 110,000 people across the country, the real estate industry isn’t just about selling houses.

It also encompasses managing rental properties, selling commercial properties and businesses, managing the leasing of business premises, and running agencies that can include large teams of people.

According to Australian Government data, real estate is a sector that is currently enjoying annual growth of around 5 per cent, with 5800 new jobs in the industry becoming available each year.

The different roles within real estate

Breaking the sector down into specific roles, the industry currently includes a number of different job descriptions  and areas of expertise, ranging from property managers and agents to principals and business brokers.

So let’s break down the numbers and look at the different types of jobs available.

Real estate agents and real estate representatives

When most people think of real estate, the mind turns to agents selling houses. At present there are 24,900 real estate agents and 13,200 real estate representatives across the country, and the difference in the two job titles lies in their level of qualification and experience.

An agent holds a real estate agent’s licence, while a representative works under the supervision of a qualified agent, but the jobs overlap in terms of the tasks involved, which are:

• Sourcing properties to sell via prospecting, networking, word of mouth and marketing
• Listing properties for sale, and handling the advertising, inspections, and buyer inquiries
• Advising sellers on the best way to sell their home, including marketing the property
• Assessing buyer’s needs and locating properties for their consideration
• Valuing properties and handling the terms of settlement, including drawing up the contract of sale

Property managers

Property managers look after the leasing of residential and commercial rental properties, with 39,200 property managers currently employed nationally.

The role includes:

• Securing rental properties to manage, advertising the property, organising inspections, screening applicants, and drawing up the terms of the lease agreement
• Collecting rent money and disbursing it to the property owner
• Organising repairs and maintenance on the property, while ensuring it is looked after by the tenant.
• Ensuring the relevant state or territory rental law is adhered to and the terms of the tenancy agreement are met.

Agency principals

Agency principals are responsible for running a real estate agency. And these businesses may range in size from sole operators or small teams to large organisations with vast teams of real estate agents, property managers, and administration staff.

At present, there are 7,200 agency principals nationally. All agency principals are required to hold a real estate agent licence, and often they will work as an agent as well as overseeing the running of the business.

In addition to having the skills required of a real estate agent, their job also involves:

• Overseeing the real estate agency, including the hiring and management of staff, business advertising, business planning, policy and procedures.
• Ensuring compliance with relevant state and territory real estate laws and licensing.

Business brokers

Business brokers handle the sale of businesses and at present there are 580 business brokers nationally.

Their role includes:

• Valuing businesses based on their performance and potential
• Advising the business seller on the best way to sell the property and the right marketing strategies
• Listing businesses for sale and handling advertising, marketing, inspections and buyer inquiries
• Collating the business documentation for buyer inspection
• Possibly arranging business finance, conveyancing and also the lease for the business premises.

Qualifications and training required

As the director and CEO of real estate training organisation, Validum Institute, Victor James Pisanos is a highly experienced real estate agent himself and notes the interesting thing about the industry is that each state and territory has different training and licensing requirements.

That said, there are general similarities across the country, with the following required before you are eligible to become a fully licensed agent.

1. Complete an approved real estate certificate with a Registered Training Organisation, such as the Certificate IV in Real Estate Practice, which includes nationally recognised units and competency
2. Gain experience in the industry, supervised by a licensed real estate agent.
3. Apply for a real estate agent’s licence with the relevant authority in your state.

In most cases, this sees prospective agents complete an initial course that allows them to work under the supervision of a fully qualified agent.

With industry experience under their belt, they can then go on to complete the full training required before applying for their full real estate licence.

So let’s take a quick look at how the training looks for the three largest real estate markets in Australia: New South Wales, Queensland, and Victoria.

Getting started

In most states and territories there are stages involved in becoming an agent. There is an initial course that allows you to sell or manage properties under the supervision of a fully licensed agent.

You can then complete additional study to gain a higher real estate qualification such as the Certificate IV in Real Estate Practice (CPP41419) which is nationally recognised and a key stepping stone to becoming a licensed real estate agent in many Australian states and territories.

New South Wales

Victor explains that in NSW, the first step to becoming an agent is the Assistant Agent Course (Certificate of Registration).

This entry-level program includes five nationally recognised units and is designed for anyone wanting to begin work in real estate sales or property management in NSW.

Queensland

In Queensland, the Real Estate Registration Certificate is the minimum qualification that’s required to work as a real estate salesperson, property manager, or administrator within an existing agency.

This course covers topics related to both property management and sales, as well as an introduction to ethics and legislation.

Victoria

If you’re looking to kickstart your real estate career in Victoria, the first step involves completing an Agents Representative course.

Covering topics such as ethics, legislation, selling property, and managing tenancies, this qualification allows you to work for a Licensed Real Estate Agent and undertake a broad range of duties and responsibilities such as sales, property management, business broking and buyer’s advocacy.

A taste of what the industry involves

Victor says there are benefits to completing these preliminary courses before diving straight into the full Certificate IV qualification and committing to a real estate career.

“An initial course allows you to dip your toe in if you’re not too sure what the industry involves or if it’s right for you,” Victor explains.

“And you can do it without breaking the bank.”

Industry experience

Armed with your initial certificate, you can start working in the real estate industry under the supervision of a licensed agent.

This might see you making phone calls and appointments on behalf of that agent, assisting with open homes, or handling inquiries about a property or the sales process.

Victor notes this experience is a great way to obtain working knowledge of what the industry is like and the skills involved, including marketing, networking, negotiating and more.

In NSW and VIctoria, this experience is also mandatory. Agents must spend one to two years working in the industry prior to completing their full qualification.

“Your first year or so is all about learning, so it’s important to pick the right office and agency as they will be giving you the guidance and induction that sets the foundation of your career,” Victor says.

Full qualification

A full real estate qualification allows you to work independently as a licensed sales agent, and again the requirements differ from state to state.

New South Wales

In NSW, the next step in a real estate career is the Class 2 real estate licence, which is available in both a sales stream and property management stream.

This qualification includes Units of Competency that contribute to a Certificate IV in Real Estate Practice and equips you with the skills to sell, lease, and auction real estate in New South Wales.

If you then want to go on and run your own agency, further qualifications are required in the form of a Class 1 licence and a Diploma of Property.

Queensland

In Queensland, a Certificate IV in Real Estate Practice is the next step to becoming a fully qualified agent.

This course has a focus on both property management and sales, as well as universal real estate skills like marketing, and trust accounting.

If you then wish to go on and become the principal of your own agency, you will need to complete additional units on top of the Certificate IV or undertake the full Real Estate Agent Licence Course which equips you to operate independently, manage trust accounts, and work as a principal licensee.

Victoria

In Victoria, becoming a fully licensed independent agent involves completing the Diploma of Property (Agency Management), alongside the Certificate IV in Real Estate Practice.

Comprising 25 units of competency in total, these qualifications meet the Victorian Business Licensing Authority’s educational requirements for applying for an Estate Agent's licence.

This level of proficiency allows you to seek employment as an Estate Agent or work as Principal Agent, running your own agency.

Attaining your licence

Only fully qualified and licensed agents can sell or manage properties without supervision. Once you have completed the necessary training, you will need to apply to the government department overseeing licensing in your state.

In Queensland, the Office of Fair Trading handles licensing, in Victoria it’s Consumer Affairs Victoria, and in NSW, licensing is handled by NSW Fair Trading.

In addition to ensuring you hold a qualification, these departments will also consider suitability and eligibility, which includes:

• Age - Licensed agents must be 18 and over, although you can complete your training if you’re younger than 18.
• Criminal check - You must not have been convicted of a serious criminal offence within the five years prior to applying for your licence.
• Right to work in Australia - You must be either an Australian citizen or have the right to work in Australia.

The importance of training

While you don’t require any previous formal education prior to starting a real estate course, the training that’s covered within a real estate certificate or diploma is critical when it comes to both best professional practice and attaining your real estate licence. 

After all, it’s no small thing to handle the sale or rental of what is likely to be someone’s greatest financial asset and there are legal implications involved.

The real estate courses offered by Registered Training Organisations are designed to cover the ethical, legal, and practical knowledge that agents require in addition to skills such as marketing property, establishing buyer, vendor, landlord and tenant relationships and more.

Ongoing professional development

The learning doesn’t stop once you’ve acquired your real estate licence. In fact most states and territories require agents to complete units of Continuing Professional Development (CPD) to sharpen their skills and hone their craft each year.

This continuing education is designed to ensure agents are abreast of the latest legislation, tools, techniques and skills relating to the industry.

Depending on where you’re up to in your career, there will be different CPD units to complete, some of which are elective and some of which are compulsory.

Possible career paths

Victor notes the great thing about real estate is it’s a varied industry where no two days are the same and successful agents can forge their own destiny.

“If you’re willing to put in the hard yards, it’s a job where there is potentially uncapped income,” he says.

“You can become a high performing agent, own your own business or even establish your own real estate brand.”

It’s also a sector that suits a large demographic - from young people starting their careers to people re-entering the workforce or those looking to embrace a new profession.

“It really is an industry where you’re in charge of your own destiny,” he says.

The different roles within the industry mean it also appeals to different people for different reasons.

For example, property managers are in high demand, with the role offering job security and flexibility in terms of full time or part time work.

Meanwhile, sales agents can work within large teams, form their own business units where they are in charge of a small team of agents, or take the next step and become an agency principal at the helm of their own real estate business.

They can also add additional skills to their toolkit such as auctioneering.

Possible career paths within the sector include:

• Sales Agent
• Auctioneer
• Property Manager
• Business Development Manager
• Agency Principal
• Multi-Agency Principal
• Business Broker
• And more…

Meanwhile, Victor also explains the skills and knowledge covered in a real estate course can also be beneficial to subsidiary industries such as mortgage broking, business lending, conveyancing, property development, and more.

“Recognised real estate courses may also be required for compliance for professionals such as accountants and financial advisors if they’re talking with their clients about property investing,” he says.

Who the industry suits

As for who the industry suits, Victor says it’s a wide variety of people, and contrary to popular belief it’s not all about flash cars and fancy properties.

“People need to be realistic about the work that’s involved, especially in those first few years,” he says.

“There are long hours, weekend open homes, and it takes time to build relationships and a reputation in your community.

He says it’s important to appreciate success doesn’t happen overnight.

“Your first year in real estate is about learning, not earning,” he reflects.

But if you’re a people person who genuinely enjoys networking, being part of a community and helping people, Victor says real estate can be a great career.

“Whether you work in property management or real estate sales, it’s a job that’s all about creating relationships with people, and that’s incredibly rewarding.”

How to pick the right training organisation

If you’re looking to take the first step in an exciting real estate career, it’s important to partner with the right training organisation from the outset.

Victor says this involves looking at the RTO’s experience, industry expertise, the range of courses available, and previous student testimonials.

“Ultimately the training should ensure that you’re job ready,” Victor says.

“So it’s a good idea to look for a training organisation where the trainers and assessors have current real world experience at the coalface of the industry.”

It’s also worth speaking with the organisation to get a feel for the study options available prior to enrolling.

For example, Validum schedules a consultation with prospective students in order to provide career guidance, course advice and personalise the training.

“We basically start out with a career consultation to understand where you want to go and bring you on board into the right course that suits your needs,” Victor says.

Although the industry has different licensing requirements, it’s also worth undertaking courses that are nationally recognised.

This allows you to translate your previous learning and skills and have them recognised should you choose to relocate from one state to another.

And as for the benefits of studying real estate? Victor says it can lead to an exciting and varied career where the sky is the limit in terms of earning potential and ambition.

“Real estate is a career that now suits more people than ever,” Victor says.

“And the great thing is, there’s no HECS debt, the training doesn’t cost the earth and the short courses that are available allow you to gain your qualification quickly so you can start working in the industry within months or even weeks.”