Becoming a real estate agent is one of the best ways of making money in real estate. Buying and selling real estate on behalf of others comes with many benefits. So before looking at how to become a real estate agent, let us look at some reasons why you should consider pursuing a real estate agent career:
- Flexibility – Most real estate agents work as independent contractors. This allows them to set their own schedules, choose which real estate clients to work with, and chart the path for their business growth.
- Good money – According to Glassdoor.com, the average base pay of a real estate agent is $51,422 per year. However, there is no limit to what you can earn. Since payment is commission-based, you can make as much money as you want. You just have to be willing to put in the work and hours.
- Networking opportunities – Being a real estate agent gives you an opportunity to work with other professionals such as surveyors, lenders, property managers, and appraisers.
- Referrals – Offering excellent service to your clients could result in repeat business or recommendation to others.
- Variety – Working as a real estate agent offers you the opportunity to work with different homes and different real estate clients on a daily basis. This means that every day is a new adventure.
- Fulfillment – Many real estate agents find great satisfaction in helping people achieve the major milestone of buying or selling a home.
- Low barrier to entry – Getting a real estate license is a relatively affordable and fast process. You don’t even need a college degree to become a real estate agent.
Wondering how to become a real estate agent? Follow these 6 steps:
6 Steps to Becoming a Real Estate Agent
1. Learn about your state’s requirements
Licensing requirements for real estate agents vary from one state to another. The first thing you need to do is to visit your state’s real estate commission website to learn about the licensing requirements. Alternatively, you could check ARELLO’s regulatory agency directory.
To give you an idea, here are some of the requirements to become a real estate agent in a few major US states:
Florida
- Be 18 years old
- Have at least a high school diploma
- Submit to fingerprinting
- Complete 63 hours of pre-licensing education
- Pass the Florida real estate exam
California
- Be 18 years old
- You must disclose any disciplinary or criminal action
- Take 135 hours of college-level real estate prep courses
- Pass the licensing exam
New York
- Be 18 years old
- Have a clean criminal record
- Complete 75 hours of qualifying studies
- Pass the New York licensing exam
Texas
- Be 18 years old
- Submit to fingerprinting
- Fulfill the Texas Real Estate Commission’s (TREC) requirements for integrity, trustworthiness, and honesty
- Complete 180 hours of qualifying education
- Pass the Texas real estate exam
Related: How to Become a Real Estate Referral Agent
2. Take a pre-licensing course
Wherever you live, you will be required to take a pre-licensing course from an accredited licensing school. As we have seen, the number of hours varies from one state to another. You can fulfill the pre-licensing course requirements by attending a brick-and-mortar real estate school or even taking online classes. Choose a strategy that works best for your schedule and learning style.
Some of the accredited real estate schools to consider include Kaplan, McKissock Learning, The CE Shop, 360 Training, and Real Estate Express. When comparing your options, look at the prices, course format, customer reviews, and customer support.
3. Apply for the real estate licensing exam
When it comes to taking the licensing exam, timing is very crucial. Be sure to submit your application early enough so you can sit the exam immediately after you complete your real estate licensing classes. Since the process of application varies from state to state, you will need to get full details from your state’s real estate commission website. With requirements such as background checks and fingerprinting, applications for licensing exams can take weeks to process.
4. Take the licensing exam
Licensing exams are computerized and are made up of two parts: a section that deals with your state’s real estate laws and a section on national real estate principles. In case you fail the exam, you will be given a chance to retake it. Different states have different regulations regarding how long you have to wait between exams and how many times you can retake the exam.
Once you have passed the exam, your state’s real estate commission will send your real estate license certificate. This will allow you to start working officially as a real estate agent.
5. Join a real estate brokerage
A local real estate brokerage is a great place to start your career as a real estate agent. You will learn real estate agent secrets from the best real estate agents or brokers. You will gain a better understanding of deeds, liens, encumbrances, title insurance, and surveys. You may also be able to generate more leads when working with a brokerage. This will help you become a successful real estate agent.
Before joining a local brokerage, ask yourself the following questions:
- What is the company’s reputation nationally and locally?
- What aspect of real estate does the brokerage specialize in?
- What are the benefits package and the commission split?
- Is there a training program for new agents?
- As an agent, will you be working as an employee or independent contractor?
6. Make use of tools and software for real estate agents
At this point, it’s time to start working to set yourself apart from the pack. A great way to do that is to take advantage of the latest tools for real estate agents on the market.
Start with software that helps you get the right leads. As a new agent, you don’t want to waste your real estate marketing efforts pursuing leads that are not ready to buy a property. Therefore, you need a proven strategy for real estate lead generation, as well as qualifying real estate leads. This strategy will be fail-proof if you introduce the right tools, such as Mashboard, into it.
Mashboard uses predictive analytics to help you instantly qualify leads. It does this by automatically gathering all the available data on a lead and then assigning each lead a score. This will let you know how likely a lead is to follow through with a purchase at the moment. When you do find a highly qualified lead, use the Property Recommender feature of Mashboard. This tool offers a list of properties that your client is sure to be interested in (with 90% accuracy!).
Conclusion
How long does it take to become a real estate agent? It could take months or even years. Though the cost of becoming a real estate agent (money and time) is relatively high, being a realtor is a real estate career worth pursuing.
Anyone can learn how to become a real estate agent. With time, you can even add other real estate certifications and designations, including those specializing in property management, mortgages, appraisal, commercial property, and residential property. This means there is plenty of room for growth in such a career. Don’t forget to read real estate agent blogs to learn about new trends in real estate marketing and to stay up to date on the happenings in the housing market.
Related: What Does a Real Estate Agent Do Exactly?