Do you want to know how to become a real estate agent? Well, this is simple if it’s what you wish for yourself. It actually takes up to four to six months depending on your location to become one. Online prelicensing classes can also speed up the process if you wish to.
How to Become a Real Estate Agent
Before you begin your journey to becoming a real estate agent, you should know that the requirements needed to vary by state. But the basic and general steps needed are for you to take the real estate prelicensing course, take the licensing exam, activate your license, and lastly join a brokerage firm.
You should also know that only real estate agents who are members of the national association of realtors (NAR) can make the realtor title and you must (a Realtor) also subscribe to NAR’s strict code of ethics.
Why You Should Become a Real Estate Agent
There are tons of reasons you should become a realtor. Working as a real estate agent offers great opportunities and a great deal of variety for you. Working with different customers and in different homes almost every day, you won’t get to be doing the same thing every day.
You get to meet new people every day, be your own boss, and in the process enjoying the satisfaction of helping sellers and buyers through one of life’s major accomplishments and milestones.
The cash can be great, as well. The middle compensation for a realtor is about $51,220 each year, as per 2020 information (the latest accessible) from the U.S. Agency of Labor Statistics. For land intermediaries—who have extra instruction, testing, and experience necessities—that figure leaps to $59,720.
Generally speaking, the most noteworthy 10% of specialists procured more than $112,410 in 2020, and a few specialists acquire considerably more than that.
Another reason why you should become a real estate agent is that getting into this very field is easy peasy when compared to other careers with almost the same salary bracket. Do you know that you do not need a college degree in getting your real estate license which is also relatively quick and affordable?
Step By Step Guide In Becoming a Real Estate Agent
If you have made up your mind in becoming a real estate agent, this means that you are looking to invest both your money and time upfront. Although both of these factors depend solely on where you are getting your license from, the specific requirements may vary by state, the basics of becoming a real estate agent will be sheared as we progress further in this post.
The first step: know the requirements of your state
The estimated cost of getting this done is free. There’s no such thing as a national real estate license, so you should meet your state’s interesting permitting prerequisites.
A decent spot to begin your exploration is your state’s real estate regulatory office site, which you can find through a web-based quest for “[your state] real estate regulatory office” or by visiting the Association of Real Estate License Law Officials (ARELLO’s) administrative organization index.
You should know that each state has basic and specific requirements for
- Prelicensing courses and also post-licensing requirements
- Exams and exam eligibility
- Application fees and process
- Fingerprinting and background check
- Criminal history reporting
- Continuing education
- And lastly, the process of achieving the next level of licensing.
A few states have reciprocal licensing agreements with different states, which imply you can get your permit in one state and use it in one more without taking an extra permit assessment.
For example, the state of New York has reciprocity with nine other states which are Arkansas, Colorado, Connecticut, Georgia, Massachusetts, Mississippi, Oklahoma, Pennsylvania, and lastly West Virginia. And as with regular requirements for licensing, each state has got its own process for getting a license via reciprocity.
Second Step – Take a Prelicensing Course
The estimated cost of this step is $350 plus. Regardless of where you reside, you need to take a pre-licensing course from an authorized real estate licensing school before you go for the real estate license test. The necessary number of hours differs by state.
In California, for instance, candidates should take three real estate classes adding up to 135 hours. In New York and Georgia, the courses require 75 hours; in Florida, the course takes just 63 hours. And in Texas, you only need 180 hours of coursework.
Most states offer multiple ways of satisfying the prelicensing course prerequisites, including on the web classes, physical land real estate schools, and classes at junior colleges. You might have the option to set aside cash (and time) by trying out one kind of class program over another, so it pays to search around.
Select the method that best works for your style of learning and schedule. Research and be selective too in the matter of picking a program. The quality of your learning materials and instructors will go a long way on how prepared you are in taking the exam.
Third Step – Go For the Licensing Exam
This step costs approximately $100 – $300. Your teacher ought to disclose how to set schedules, register, and pay for the licensing test (if not, visit your state’s real estate commission site).
Tests are computer-based and comprise of two sections: a national part on general land standards and practices, and a state-explicit segment that covers your state’s land laws. The tests are multiple-choice designed, and the quantity of inquiries and time designated for the test differ by state.
Each segment is scored independently, and you should get a passing grade on the two areas to pass. In the event that you do not pass one of the two segments, you’ll have the chance to retake the test.
Each state has its own principles in regards to the occasions you might retake a test, how long you should stand by among tests, and the cutoff time for finishing any retakes.
Fourth Step – Activating Your Real Estate Agent License
This step costs $200 – $400 approximately. At the point when you pass the test, it’s an ideal opportunity to present an application and any necessary records and expenses to your state’s real estate regulatory organization or association.
At the point when your application is endorsed, the state will mail your real estate license certificate, and your name will be accessible under the licensees’ segment of its site. Remember that you’re not permitted to fill in as a realtor before your permit is given by the state’s real estate authority—so grasp off until you have that permit.
The Fifth Step – Consider To Become A Realtor
The estimated cost for this step is $185. Many individuals utilize the terms real estate agent and Realtor conversely, however they really contrast.
However both are authorized to help purchasers and dealers all through the land exchange process, Realtors are individuals from the National Association of Realtors (NAR) and prefer its severe Code of Ethics.
The National Association of Realtors is the biggest exchange affiliation the U.S., addressing 1.3 million individuals who are salesmen, brokers, property directors, appraisers, advocates, and different members in the private and commercial real estate industries.
Membership is optional, but being a realtor can add to your credibility as a well-recognized real estate agent. And as a realtor you will be able to access a host of benefits and advantages such as:
- Business tools
- Discount programs geared towards helping you succeed in your business.
- Research, statistics, and real estate market data
- Many educational opportunities
Realtors have access to the realtor’s property resource (RPR) which is the largest online real estate database in the United States. It is built from public records and assessment information. This includes information on permits, zoning, mortgage and lien data, schools, and a great database of foreclosures.
Sixth Step – Join a Real Estate Brokerage Firm
The estimated cost for this step is $25 – $500 monthly. As a real estate agent, you work under the umbrella of a directing specialist who is authorized by the state to regulate real estate exchanges and ensure you (and the other realtors) follow the necessary legitimate and moral guidelines.
As a general rule, you will not acquire hourly compensation. All things being equal, the business will probably pay you a level of the commissions it gathers from your land exchanges.
Contingent upon the plan you have with your financier (brokerage), you might need to pay for work area charges, tech expenses (e.g., for your site), business cards, promoting materials, and other ordinary expenses of carrying on with work.
You’ll likewise have other one-time and continuous costs, for example, reestablishing your permit every year, continuing schooling, lockbox charges, and Multiple Listing Service participation.
Securing a real estate license takes up your resources and time. But one thing it can surely do is that it can help you secure a good job in the realtor industry. You should also know that securing a job and a career in the industry can be as flexible as you want.