Real Estate

What it’s about:

The real estate major provides you with an under-standing of the economic and social principles that affect how real property-buildings and land-is developed, financed, operated, and traded.

What the study of this major is like:

In real estate, which is an interdisciplinary field, you study various areas of business and you learn to communicate well, both in speaking and in writing. As a major, you probably won’t take real estate courses until after you complete course work in the liberal arts and introductory business courses such as accounting, economics, and statistics. Then you take an introductory course covering the language of real estate, ethics, brokerage (the buying and selling of real estate), appraisal (the valuation of real estate), contracts, and property management.

In higher-level courses, you learn about the law of property ownership, transfer, and land-use control; methods of financing property purchases and sales; the effect of tax laws on real estate investment; management of office buildings and apartment building; and marketing techniques. In addition, you gain development and redevelopment skills, including ways of salvaging abandoned properties. You might also have the opportunity to do a residential or commercial practicum, managing the construction or development of an actual piece of property.

Real estate classes typically follow a lecture-discussion format and use case studies and computer software as problem-solving tools. Some programs in real estate focus on physical elements (sites and structures) and have studio courses to teach physical planning and construction. Other programs concentrate on theory. Try to determine which type of program interests you the most. You might be attracted to theory-oriented programs if you are considering a job in planning or government. If you want to go into the real estate business, look for programs that emphasize real-world interaction between the real estate and business communities. 

The real estate field, which is constantly changing, is a challenging area. To creatively meet the needs of owners, landlords, tenants, purchasers, financiers, and others involved in property transfer, real estate professionals must understand the many aspects of the business and work well with a variety of individuals and representatives. For example, you might have to locate a site for an office building; determine how to finance the transaction; figure out a tax-saving strategy; and work with teams of attorneys, accountants, and other professionals. Successful real estate professionals need initiative, patience, and stamina to see projects through; various technical skills; and an ability to see the “big picture” of a real estate deal. 

Although many graduate work in established sectors of the industry, others establish their own businesses or manage their own investments. In addition to financial rewards, the real estate field can give you the chance to set your own flexible schedule.

Career options and trends: 

Real estate broker or sales agent; appraiser, consultant; mortgage banker; financial analysts; developer, tax assessor; real estate asset manager. 

In order to work as a real estate sales agent or broker, you must pass a state real estate licensing exam. 

Opportunities in the real estate field can be found in global and international real estate, REITs (real estate investment trusts), corporate positions, investment houses, financial and tax planning organizations, low-income housing, and government agencies dealing with housing, building regulation, and property management. 

The real estate filed tends to be cyclical. Swings in the economy, especially interest rates, affect agents and brokers the most. The real estate market is slowly revering from the recent downturn, but to varying extent across the country. The time it will take to recover will also vary by region. 

However, there are a wide variety of employment opportunities in the industry. After all, everyone needs a place to live, and a place to work. With or without cycles, this fact won’t change.

Source: CollegeBoard 2012 Book of Majors