Becoming a real estate analyst is a great way to start your career in the field of real estate. Real estate analysts are responsible for assessing the value of properties and helping clients make sound investment decisions. This position requires strong math skills and an eye for detail. If you want to become a real estate analyst, you’ll need to have a college degree in math or economics, as well as some experience in the field. Here’s what you need to know about pursuing a career as a real estate analyst.
1. What Is a Real Estate Analyst?
A real estate analyst is involved in research, analysis, and reporting on the financial and economic implications of property or land use. Their work includes: valuing properties, checking the accuracy of reports and specifications for development proposals, and assessing how proposed developments will affect local businesses and jobs. Real estate analysts may also be engaged in appraising construction projects – this may include assessing the technical and commercial feasibility of a project, verifying budgets, and checking projected returns against current market conditions.
In many cases, real estate analysts work for local authorities or government agencies. In the private sector, real estate analysts may be employed by financial institutions, insurance companies, and property developers.
Real estate analysis is a key component in determining a company’s next move when it comes to investing in a certain place. It is essential that they have a good understanding of the surrounding area and its surroundings before they purchase a property in another region.
The primary goal is to achieve maximum returns with minimal risks. However, when it comes to assessing the stock market, real estate analysts also work alongside investment bankers in order to provide clients with suitable investment opportunities.
2. What Does a Real Estate Analyst Do?
Real estate analysts use data to produce reports and documents that assess the financial and economic implications of property or land use.
The specific responsibilities and tasks carried out by real estate analysts vary depending on their level of seniority, but common duties include: assessing proposed developments; preparing impact studies; participating in feasibility studies; carrying out market research; reviewing budgets and forecasting cash flow; analyzing costs and revenue; preparing reports; liaising with clients, developers, contractors, and other professionals.
3. How to Become a Real Estate Analyst?
To become a real estate analyst, you will need to have a degree in math or economics. It is also highly recommended that you gain some work experience before pursuing a career as a real estate analyst.
Many colleges offer courses in real estate, which provide students with the skills needed to pursue a career as a real estate analyst. Courses may cover topics such as the US real estate market, commercial real estate appraisal, real estate finance, and sales. Some employers may prefer candidates who also have professional accreditations in areas like Environmental Site Assessment (ESA), Lead-Based Paint (EPA 40 CFR 745), Phase I ESA (State/Local Governments).
Real estate analysts may advance to more senior positions, such as associate or vice president. More experienced professionals often take on supervisory responsibilities and manage a team of analysts.
As mentioned previously, you will need to have a degree and some work experience before pursuing a career as a real estate analyst. The American Community Survey (ACS) reported that the largest number of people employed in this occupation across all levels of education had attained an associate’s degree.
4. What Skills and Qualities Do I Need?
Some of the skills and qualities that are needed to become a real estate analyst include:
- Strong analytical skills- You will need to be able to assess the potential impact of proposed developments and assess financial viability.
- Good interpersonal skills- You will need to liaise with clients, developers, and other professionals on a regular basis.
- Mathematical skills- You will need to excel at data analysis in order to prepare reports. Research skills- You will need to carry out research on local demographics and socio-economic factors to assess the impact of proposed developments.
- Knowledge of real estate performance analysis – You will need knowledge of real estates performance analysis such as discounted cash flow modeling, financial forecasting, and cost/benefit analysis.
- Knowledge of market trends- You will need to be able to interpret market data and provide written reports on the associated real estate statistics.
- Flexibility and adaptability- You will need to be able to work with a range of people and under pressure, especially if you are employed by an investment firm.
- Good presentation skills- You will need to present research findings and market analysis in a professional manner during meetings with clients or at conferences.
5. What Kind of Salaries Do Real Estate Analysts Earn?
According to the US Bureau of Labor Statistics (BLS), real estate analysts working for investment and commercial banks earned an average salary of $92,760 in 2016. Other employers offering high salaries include securities and commodities exchanges, management, scientific and technical consulting services, and financial investment activities.
Entry-level salaries tend to be on par with those offered by schools, colleges, and universities. Although the further up the career ladder you climb, the higher your salary will be.
Real estate analysts may earn more in certain states due to a shortage of skilled labor in these regions. The US Bureau of Labor Statistics reported that real estate analysts working in the District of Columbia earned an average salary of $108,940 in 2016. Other high paying states included California ($101,400), Massachusetts ($88,880) and New York ($87,820).
Real estate analysts working for investment and commercial banks earned an average wage of $92,760 in 2016.
6. Real Estate Analyst Job Outlook
The US Bureau of Labor Statistics projects 19.8 percent employment growth for real estate analysts between 2016 and 2026. In that period, an estimated 15,800 jobs should open up. Licensed assessors are also expected to find more work as the amount of commercial development continues to increase. Jobs related to real estate development are expected to grow 15 percent between 2016 and 2026.
7. How to Advance in This Career?
Real estate analysts in senior positions may advance to a chief economist or director of real estate analysis, often after gaining a master’s degree in real estate.
A master’s degree in real estate development is a distinct advantage when it comes to advancing your career as a real estate analyst. However, many employers also consider relevant work experience and prior academic achievements. There are also real estate training courses you can complete online.
In addition, many employers prefer analysts with knowledge of GIS systems as well as commercial and residential building types. They may require individuals to have a bachelor’s degree in a field other than finance or economics, such as geography or engineering. Real estate developers usually have at least a bachelor’s degree in real estate, business, or a related field.
In addition to experience and educational attainment, employers may consider other qualifications such as relevant work experience and prior academic achievements, knowledge of GIS systems, and commercial and residential building types. Often real estate developers have a degree in finance, economics, or another subject unrelated to the industry.
8. What Does a Typical Day Look Like for a Real Estate Analyst?
A typical day for a real estate analyst varies depending on which sector you work in. Some roles will require you to spend more time researching market trends and presenting findings at meetings or conferences, whereas others may involve working closely with developers and clients throughout the pre-planning stage of a project.
Real estate analysts who work in private industry can expect to spend their days analyzing market trends, preparing reports and forecasts based on this data. They may also be required to attend meetings with clients or present findings at conferences.
For real estate analysts who work for local authorities, the working day can be more varied. You may spend your time in meetings with developers, attending block watch meetings with the community, or working with local businesses.
In both sectors, real estate analysts may be required to carry out additional tasks such as writing reports for clients and stakeholders or updating project spreadsheets. This can involve a lot of research and data analysis work.
9. Where Does a Real Estate Analyst Work?
Many real estate analysts are employed by investment and commercial banks, but they may also work for credit unions, life insurance companies, or other types of financial institutions. The risk assessment component of the job will differ depending on which sector you work in.
If you are employed by an investment bank, your day-to-day tasks will likely involve researching market trends and performing risk assessments of the properties you are analyzing. You may also be involved in structuring commercial loans with developers or assessing mortgage-backed securities for quality and risks associated with various terms.
In the public sector, real estate analysts may work as assessors or planners for a local authority that is responsible for zoning ordinances and other development regulations. They may also find work as appraisers for federal agencies such as the Federal Housing Administration (FHA).
10. What Are the Top Recruiting Companies for a Real Estate Analyst?
The top recruiting companies for real estate analyst positions are listed below, along with some popular job titles.
- 1. JP Morgan Chase – Commercial Loan Risk Analyst
- 3. Black Knight Financial Services – Residential Mortgage Underwriter
- 4. American International Group, Inc. (AIG) – Insurance Risk Analyst
- 5. SunTrust Banks, Inc. – Property Underwriter
- 6. Bank of America Corporation – Senior Analyst
- 7. Morgan Stanley – Commercial Real Estate Loan Officer
11. Best Colleges to Study Real Estate Analysis
If you are interested in studying to become a real estate analyst, the following colleges or universities offer degrees that could help you do just that.
- Texas A & M University-Corpus Christi – Bachelor of Science in Business Administration with an emphasis in Real Estate
- Belmont Abbey College – Bachelor of Arts in Economics and Business Administration with a Minor in Environmental Studies
- The University of North Carolina at Greensboro – Bachelor of Arts or Sciences, depending on specialization chosen
- Montclair State University – Master’s degree and Doctor of Philosophy (Ph.D.)
- Washington and Lee University – Master’s degree in Real Estate or Urban Land Economics
- La Salle University – Master’s degree in Real Estate
- The University of California Riverside – Bachelor’s degree, Master’s Degree and Doctorate degree in Real Estate
- Harvard University – Master’s or Ph.D.
12. Online Courses to Study Real Estate Analysis
If you don’t want to work towards a college degree, there are several online courses that could help prepare you for roles as a real estate analyst.
Real Estate Investing…Without Owning Real Estate Property by Udemy
This course is designed to give you the tools and strategies needed to start investing in real estate as an absolute beginner with limited funds to invest in real estate. There is no previous experience or background knowledge required to complete this course.
Wholesaling Real Estate And Assignment Mastermind Course by Udemy
In this course, you will learn the three major ways to make money as a real estate wholesaler. You will also discover how to analyze deals and determine if they are worth pursuing or not. This is a six-week course with video lectures and a weekly assignment for self-reflection.
Real Estate Analysis Foundations by Linkedin learning
This course will provide you with the best practices needed to create accurate real estate investment analysis. You will develop the necessary skills to assess current market conditions, perform proper financial analysis and create accurate reports.
Fundamentals of Analyzing Real Estate Investments by Udemy
This course is designed to provide you with the knowledge base needed to understand how real estate investors source, underwrite, and close deals. The course will also teach you how to perform a full financial analysis on a rental property so that you can determine its value and whether or not it should be included in a portfolio.
Becoming a real estate analyst is a great way to enter into the world of commercial or residential property. By studying and understanding market trends, you can help clients make informed decisions about where to invest their money. The best part of this career path is that there are many ways to specialize, so you can find your niche in the industry and become an expert in it. With hard work and determination, you could be on your way to a successful real estate career.