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The Difference between the Residential and the Commercial Real Estate Agents

The Difference between the Residential and the Commercial Real Estate Agents

The residential real estate agents have many things in common with the commercial real estate agents. It’s known that it’s easier to break into the residential real estate segment than in the commercial segment.

Commercial real estate is business-focused and it relates to the legal entities business needs, while the residential real estate revolves around natural persons needs. Almost every individual could identify himself or herself with someone who owns a house and would like to sell it. Since it’s a less rigid market it’s easier to begin working in the residential real estates environment.

Emotional Return of Investment for residential real estate agents

Buying a house to live in represents an emotional choice. Some particular features of that house, such as the way the windows are positioned or how lovely the future owners picture themselves living there, make people decide to buy a real estate that would cost more than it really values, even if they know that it’s a loss. They will have an emotional benefit instead of it. It’s a once in a lifetime choice that will have its value returned in pleasant moments and joy in your private life, not in your career life. The return of investment has different unity measure now.

Financial Return of Investment for commercial real estate agents

You will never hear about anything than financial interpretations when we talk about the commercial real estate agents. They work in a stiffer market – it’s only about business decisions such as what million dollars retail center would it better to buy? These are decisions that are not based on sympathy but on strict return of investment calculations.


Someone could become an expert in the residential real estate market after working conscientiously for three to six months. Commercial real estate agents cannot start on their own but in some bigger enterprise that has access to a database and has market contacts.


You can make more money by working in the commercial segment than working in the residential one, that is for sure. However you can start working doing both if you are placed in a small market which is not specialized enough.

Age limit

Basically there is no limit for entering on this job segment, but we must say that working in the residential segment seems more permissive than working in the commercial segment. 40 years old women can start having this kind of job with no problem. The commercial real estates segment requires a person to start early to have time to make many contacts and connections. Another option would be to start at any age on the residential real estate segment, get comfortable there and then slowly pass to the commercial one.