Every month in America, hundreds of people Google “how to become a real estate agent” as they ponder becoming one of the millions of real estate license holders in the country. And with good reason—thrilling it’s to assist someone in finding the ideal residence or in making a tonne of cash when they sell their property.
Real estate transactions aren’t always as simple as they might seem. It’s also a notoriously difficult field for rookies; according to real estate guru Tom Ferry, the majority of new agents fail within the first five years.
This all implies that you should carefully consider the benefits and hazards of entering this job. Here are the stages so you know how much time and money you’ll need to put in in the beginning.
How to become a real estate agent
- Take a real estate pre-licensing course
- Take the real estate licensing exam
- Activate your real estate license
- Consider becoming a Realtor
- Join a brokerage
How much do real estate agents make?
Not to mention the potentially lucrative nature of the real estate industry. The average annual salary for real estate agents, according to the Bureau of Labor Statistics, is $51,000; however, the top 10% of agents can make more than three times that amount.
Rae Wayne, a Realtor with the Bizzy Blondes team in Los Angeles, claims that “we can earn as much money as physicians and attorneys, yet they spend tens of thousands of dollars on their degrees.”
But it doesn’t mean the procedure is simple. A broad description of how to get there is given below.
Take a pre-licensing course
Before they may take the real estate license test, individuals must complete pre-licensing training from an accredited institution, according to state regulations. The needed amount of training hours vary greatly depending on the jurisdiction: for instance, real estate agents in Virginia must complete 60 hours of pre-licensing training, while those in California must complete 135 hours.
You will learn real estate techniques, such as how to assess a property’s worth, real estate principles (including concepts like “lien,” “escrow,” and “encumbrance”), and business law in this course. To learn more about licensing requirements and to see a list of authorized pre-licensing colleges, visit the website of your state’s real estate commission.
Pre-licensing classes may be completed online or in person, so think about your learning style before choosing a location. (Wayne notes that some people concentrate better in a classroom environment.)
Take the licensing exam
To register to take the license exam, visit the website of your state’s real estate commission. (The majority of states contract with independent testing facilities to administer the tests.) State-specific laws make up the second component of exams, which are often separated into two sections covering federal real estate legislation and generic real estate concepts. Both generally have between 60 and 100 multiple-choice questions, some of which rely on a calculator for math (e.g., prorating taxes for a specific property). Sample exams are offered to students in the majority of pre-licensing classes, and many real estate commissions provide sample questions online.
What are the chances that you’ll refuse? 50% of students fail the first time in some states, including Florida. The good news is that throughout a two-year period, you may typically take the test as frequently as you’d like. However, after two years, candidates must retake the pre-licensing course.
Active your real estate agent license
Pass the exam? Congratulations! What you need to do next in order to interact with clients is as follows:
- Utilize the website of your state’s real estate commission to activate your license. The average activation price ranges from $200 to $400.
- Pay a fee to join the neighborhood multiple listing service. Since you must utilize the MLS to list properties, which are subsequently distributed to websites like realtor.com, membership in the local MLS is crucial. You may also quickly access a property’s tax records, examine market trends, and view listings before they hit the market thanks to this service.
Consider becoming a Realtor
You must join the National Association of Realtors® in order to be a full-fledged Realtor, a licensed agent with the right to use that esteemed title. Without exceptions So what is the benefit?
Access to real estate market data, price breaks on educational programs, and transaction management services are just a few advantages of NAR membership. Additionally, it lends legitimacy to be able to utilize Realtor on your business card and other promotional materials.
Join a brokerage
You must work under a supervising broker in order to become a real estate agent and legally practice real estate. To supervise real estate transactions and guarantee that real estate salespeople—you!—are that’s abiding by the necessary legal and ethical requirements, real estate brokers are licensed by the state. Consider it a safety measure akin to the need that stockbrokers to work for a licensed company rather than going it alone in order to trade equities. You might eventually seek a license to work as a real estate broker as well, but you need first to accumulate some experience as an agent.
Expecting an hourly wage is unrealistic because most brokerages only pay their agents on commission. In other words, you normally won’t obtain advantages and only get paid after a transaction is completed. Since there is no expense to the brokerage due to this compensation system, new agents are frequently welcomed with open arms. Find a brokerage that you like and that is willing to hire you so you can get some on-the-job training.
