A real estate analyst provides financial analysis in support to the financing, acquisition, marketing and leasing of a certain property. He will give professional advice to real estate companies and other firms in the business based on the economic conditions, market trends and their financial situation. His job can also involve evaluating his client’s credit, helping negotiate lease and mortgage contracts and coordinating loans.
This professional typically works with firms that hold significant investments in real estate, where he is needed to make sure the investment portfolios are stable and to help with increasing their holdings. He will be responsible for mitigating risks that these firms’ current and future investments carry, while he carefully analyze these areas. In case he is working with organizations that specialize in structured finance, he will also be responsible for the purchases, whether he is working on a project as a member of a team or alone. Moreover, he might also focus on a specific aspect of real estate, like concentrating in one particular type of property or working only in a specific region.
Real Estate Analyst Duties and Responsibilities
A real estate analyst has many duties and responsibilities, but there are tasks that are usually found in the profession’s job description, such as the following:
- He produces regular market performance assessment (MPA) reports for his client and maintains real estate market rating models for the assigned properties on the market.
- He monitors and analyzes specified commercial and residential real estate market conditions, using the area’s internal and external real estate, financial and economic data, as well as research.
- He is responsible for managing his organization’s real estate holdings, continuously watching the markets where his client or company is having properties to be prepared in dealing with any changes that might occur in the area and in capitalizing any positive shifts.
- Based on market analysis and assessment, he contributes to the development of forward-looking and proprietary perspectives on an assigned property’s anticipated performance.
- He monitors and analyzes key demographic and economic trends in the assigned geographic market, as well as reports the key developments to his manager and end-users in the property business.
- He may also be responsible for preparing weekly or monthly meetings for his firm’s management to keep his superiors updated with the developments in the industry. He works with buyers and answers their queries about his firm’s properties.
- He assists his manager in applying market research to help guide the benchmark underwriting assumptions for assigned properties in the region.
- He builds and maintains working relationships to acquire market insights from internal and external sources, such as lenders, appraisers, brokers and research professionals.
- He contributes to the development of specialized research on the real estate market pertaining to geographic markets of interest and property types in order to enhance the realizable value of real estate market resources for his firm and end-users.
- Considered as a senior professional within his organization, he serves as member of first-line management. As such, he can provide technical and team supervision, where his firm will depend on his expertise and experience.
- He is in charge of identifying opportune moments to sell current property and researching new areas to invest in.
Required Knowledge and Skills
Whether he works with the development and acquisitions department of a firm or works separately, a real estate analyst will have to perform an array of analysis, which depends on a specific criterion. This means that he should have excellent skills of operating with figures and have mathematical and analytical solving skills. Aside from analysis, he also have to write reports and rankings, so to be a good real estate analyst, he should be fluent when it comes to writing and savvy with computers, as he will most likely find himself in situations where he will definitely have to interpret and explain figures, charts and studies. Verbal communication is also a really important quality in this profession.
Also, the work of a real estate analyst often requires the study of property markets and creating surveys for him to find out the potential capability of real estate acquisition in a certain area, and evaluating a particular target region means he has to prepare portfolios on various criteria and study the previous cash flows in that area. He must be up to speed with local and national news related to the real estate business, and should analyze the sales of private and public properties, which include ranking of figures, especially the lowest and highest prices per square foot. Moreover, this professional needs to be aware of competitor activities and should continuously approach new sellers and customers.
Real Estate Analyst Salary and Job Outlook
According to a report by the US Bureau of Labor Statistics (BLS), the general average salary of real estate analysts as of May 2014 is nearly $92,250, with the top earning 10% of this working group earning more than $154,680, while the bottom earning 10% earning $48,170 or less. In terms of job outlook, real estate analysts can expect to see a growth in employment of 16% from 2012 to 2022, but they should also expect competition, as there are more aspiring real estate analysts than other open positions. However, the BLS also said that the job outlook for such a profession is less predictable.
Those who are looking to land a job as a real estate analyst are generally required to hold at least a bachelor’s degree in business administration, finance or other related fields. Also, depending on the position’s seniority, they would be asked by employers of 1 to 3 years of experience of working in real estate.
In a nutshell, a real estate analyst is a financial analyst who helps with stabilizing the property market by offering analytical insight for sellers and buyers. And if you are interested in becoming this type of professional, make sure you weigh down the pros and cons before you make such a career decision.