Are you considering a career in real estate? You are not alone! Over 1.5 million members and many other agents in the National Association of Realtors make this a popular and rewarding career choice. If you want to help find that perfect home or sell the property for the best price, a real estate agent is right for you.
Why Become a Real Estate Agent?
Before we get into the steps, let us talk about why this career appeals to so many people.
- Flexible Hours: You get to decide when to work, making it easier to balance your job with personal commitments.
- Be Your Boss: As an agent, you can work independently and set your goals.
- Great Pay Potential: Although the median annual income for agents in 2023 was $54,300, the high-end earners exceeded $119,000. The brokers with additional responsibilities earned more.
How to Become a Real Estate Agent
Research Your State’s Requirements
Real estate licensing is not one-size-fits-all. Each state has unique criteria regarding:
- Minimum age (usually 18 or 19).
- Education level (high school diploma or GED).
- Pre-licensing course hours and post-licensing requirements.
- Licensing exams and fees.
Some states even have reciprocity agreements, meaning you can transfer your license to another state without taking a new exam. For example, Illinois has agreements with states like Georgia and Florida, but Texas needs to recognize licenses from other states.
Take a Prelicensing Course
Prelicensing courses must be completed before taking the licensing test. Tuition for classes varies between $350 and $1,000, again depending on the state and the format —online or in-class.
Hours Required:
- California: 135 hours
- Florida: 63 hours
- New York: 77 hours
These courses range from real estate principles through state-specific laws to ethical practices.
Many community colleges, real estate schools, and online platforms offer such courses, so you can choose the one that is most convenient for you.
Pass the Real Estate Licensing Exam
Once you have completed your course, you must pass the licensing exam. It usually costs between $75 and $300.
- National Section: General practices on real estate.
- State Section: Laws and regulations specific to your state.
The test is multiple-choice, and you will need to pass both sections. If you do not pass, most states allow retakes, but the rules for retakes vary. For example:
- Arizona: Unlimited attempts, but you must review missed questions after two failures.
- Illinois: Up to four attempts in a year.
Activate Your License
After passing the exam, you will need to apply for your real estate license. This includes submitting forms, paying fees (usually $200–$400), and completing background checks.
Example Costs:
- Washington: $223
- Illinois: $150 (broker license)
You will obtain your license and be able to begin working as a real estate agent once you have been accepted.
Join a Real Estate Brokerage
Real estate agents must work under a licensed broker. This broker oversees your transactions and ensures you comply with legal and ethical standards.
Benefits of Joining a Brokerage
- You can take advantage of office space, marketing materials, and databases.
- Receive mentorship and training programs.
Costs
- Desk fees: $25 –$ 500/month.
- Marketing costs: Business card creation, lockbox charges, and, perhaps, an MLS membership.
Though expensive, these are all considered cost-of-doing business when owning and operating your real estate firm.
Become a Realtor
Not all agents are Realtors. To become a Realtor, you need to register with the National Association of Realtors (NAR), which charges $156 per year.
Advantages of NAR Membership:
- You get access to the biggest U.S. real estate database, Realtors Property Resource (RPR).
- Discounts on educational courses, marketing tools, and business resources.
- Credibility and trust with clients, as Realtors adhere to a strict Code of Ethics.
What Makes Real Estate a Great Career?
- Ease of Entry: It is quicker and less expensive to become a real estate agent than other professions with comparable income possibilities.
- Exciting Work: Every day is different! You will meet new people, visit properties, and help clients achieve significant milestones.
Tips to Market Yourself as a New Agent
- Build Your Network: Tell family, friends, and acquaintances about your new career. Referrals are key to finding clients.
- Leverage Social Media: Create accounts on social media sites like Facebook, LinkedIn, and Instagram to highlight your listings and areas of expertise.
- Team Up: Connect with home builders, lenders, and other agents to increase your possibilities.
What Is License Reciprocity?
Some states do not require agents who are licensed in other states to retake the exam. This saves time and effort, especially if you will be working in more than one state.
What Is the NAR Code of Ethics?
It is a set of rules that all Realtors must follow, from their duties to clients, the public, and other agents. This ensures professionalism and trustworthiness.
Conclusion
Becoming a real estate agent takes time, effort, and money, but it is a rewarding career with flexibility and excellent earning potential. Whether you are drawn to the flexible schedule, the opportunity to be your boss, or the chance to help others achieve their real estate dreams, this path could be your calling.
By following these steps and investing in your education and network, you will be well on your way to a successful real estate career!